FOREXYARD: Forex News Blog

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• Euro Zone Interest Rates Hiked to 2009 High
• ADP Jobs Report Indicates Solid Growth in US Employment
• Aussie Dollar Jumps on Jobs Report

Euro Zone Interest Rates Hiked to 2009 High Posted: 07 Jul 2011 06:30 AM PDT The European Central Bank (ECB) announced this afternoon that short-term interest rates, known as the Minimum Bid Rate, have been raised to 1.50%; a high not seen since early 2009. The news bodes well for the euro zone, as tightening monetary policy should help lift the region's currency values and keep its industries competitive globally. The timing of the rate adjustment comes alongside forecasts of accelerating inflationary growth and similar monetary policy adjustments in Sweden, China and possibly New Zealand next week. Such rate adjustments speak to a sense of economic growth not felt in years, but the coincidental timing alongside ratings downgrades, slumps in manufacturing, bullish inflationary figures, and housing price growth seem to signal much more. We now appear to be entering a period of internal reassessment. Growth is visible, sure; but consumers are still leery, ratings agencies are upset with inaction on several fronts by policymakers, debt contagion looms, and the financial and political structures that brought about the initial crash of our system are still in place, only mildly adjusted. This is not a song of pessimism; merely an acknowledgement that growth for the next few months, if not years, will likely be marred by forecasts and assessments made by analysts reluctant to accept that anything has really changed. The question is, Has it? Read more forex trading news on our forex blog.

ADP Jobs Report Indicates Solid Growth in US Employment Posted: 07 Jul 2011 06:23 AM PDT Automatic Data Processing, Inc. released its assessment of job growth in the private sector of the United States. The numbers were released far greater than what many analysts had expected, indicating a boom in private employment growth across a nation befuddled by structural employment deficits. Fear that Congress will fail to lift the debt ceiling, sending the nation into a potential second collapse, has several economists worried that businesses will be reluctant to hire. Forecasts for this month's employment data were still for a near-doubling of last month's reading, but the surprise jump to 157,000 new jobs added in the private sector gave a moment of pause for pessimists who doubted America's resurgence would happen so quickly. Read more forex trading news on our forex blog.

Aussie Dollar Jumps on Jobs Report Posted: 07 Jul 2011 06:18 AM PDT Following setbacks earlier this week, the Australian dollar (AUD) now appears to have climbed back to regain much of its weekly losses. The release of employment data from the Australian Bureau of Statistics this morning signaled growth in the nation's jobs sector, spurning a retracement by the Aussie. Adding over 23,000 jobs in June, the employment sector of the Australian economy looks to be making strides. The data could not have been better timed as several analysts have begun to question the value of the AUD in times of high risk appetite. News affecting the country positively still correlates to strong upward movements in its currency, a clear sign of risk association. Any additional bullish indicators from Australia could help lift the currency further in the days ahead. Read more forex trading news on our forex blog.

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