Post Tagged with: "interest rate"

Australian Dollar Recovers From Rate Cut

The RBA cut the interest rate in Australia by 0.25% to 4.25%, in a move that was widely expected. This is the second cut in a row. Glenn Stevens and his colleagues cut the rates from 4.75% to 4.50% on November 1st. 

The Aussie took a dive following this move, but it found support and bounced back up. Update.

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Draghi: Risks Have Materialized – EUR/USD Extends Drops

Draghi: Risks Have Materialized – EUR/USD Extends Drops

In his first press conference as the president of the ECB, Mario Draghi explains the decision to cut the interest rate from 1.50% to 1.25% and describes the risks to growth as “materializing”. EUR/USD reacts with a extended drops on the worrying tone of Draghi.  EUR/USD is already at support at 1.3725 and threatens to break [&hellip

ECB Supplies Market Liquidity, Limited Market Intervention – EUR/USD Falls

ECB Supplies Market Liquidity, Limited Market Intervention – EUR/USD Falls

Jean-Claude Trichet said that the ECB is “monitoring very closely”, but immediately announced an LTRO plan to supply liquidity – pushing money to the markets. The ECB intervened in the markets, but at a very limited scale, apparently without touching Spanish and Italian bonds. The best show in town for euro traders ended with a [&hellip

Stepping Back From The Monitors? ECB Preview

Stepping Back From The Monitors? ECB Preview

Jean-Claude Trichet will have his monthly rendezvous with the press after the rate decision, and is likely to be softer this time. How will the euro react to Trichet’s words? ECB Preview with four scenarios – one is already priced in. On Thursday at 11:45 GMT, the ECB is expected to leave the interest rates unchanged [&hellip

NZD/USD Should Get More Attention

NZD/USD Should Get More Attention

The New Zealand dollar / US dollar usually ends lists of currency pairs, and is sometimes just left out of them. The currency is just above the “exotic” grade, enjoys a few positive characteristics, and should gain more attention from currency traders. Here are 5 reasons why. With a population of less than 4.5 million [&hellip

Is Trichet Bold Enough to Change His Mind?

Is Trichet Bold Enough to Change His Mind?

At this time three years ago, Trichet raised the rates just before the global financial system collapsed. He found himself slashing the rates quickly afterwards. It’s not only a fresh round of the debt crisis that poses a risk. There are many signs of a slowdown at the euro-zone’s strongest countries and all over the [&hellip

EUR/USD Falls as Trichet Signals Further Pause and Warns About Exchange Rate

EUR/USD Falls as Trichet Signals Further Pause and Warns About Exchange Rate

ECB President Jean-Claude Trichet didn’t use the code words “strong vigilance”, but used “monitor very closely” instead. So, we expect another pause in rate hikes next month. This comes as the interest rate was left unchanged at 1.25%. EUR/USD now drops and is dropping below support. The falls are accelerated after Trichet quotes in full [&hellip

More Strong Vigilance? ECB Preview

More Strong Vigilance? ECB Preview

The ECB is expected to leave the interest rate unchanged after the hike last month. The big question is which code words will Jean-Claude Trichet use at the press conference. Here are three factor pushing for a hawkish stance, and three factors pushing for a dovish one. ECB Preview. After two years, the European Central [&hellip

Don’t Rule Out an Australian Rate Hike

Don’t Rule Out an Australian Rate Hike

Australia’s central bank faces a tough dilemma as it needs to tackle rising inflation on the background of a soaring currency. Here’s a preview for the Australian rate decision. The Reserve Bank of Australia will release the new interest rate on Tuesday, May 3rd,  at 4:30 GMT. There is a wide market consensus that Glenn [&hellip

FOMC Statement Fails To Lift Dollar

FOMC Statement Fails To Lift Dollar

The FOMC Statement contains no surprises. There’s no mention of what will happen after QE2 ends. Without a clear commitment to stop printing dollars, the greenback slides against other currencies, but ranges aren’t broken, as the market awaits the press conference. EUR/USD is at 1.47, USD/JPY stops the rally it had earlier in the day, [&hellip