FOREXYARD: Forex News Blog | |
- Greenback Outperforms Yen
- France Experiences Unexpected Growth
- German GDP Numbers Released
- Tension Regarding Greek Bailout
| Posted: 15 Feb 2012 06:40 AM PST
The USD has steadily moved out ahead of the Japanese yen this afternoon. The USD/JPY has hit a 3 1/2 month high and experienced flat trading at 78.49. This can be attributed to a number of factors, including recent announcements from the Bank of Japan. The BoJ recently implemented monetary easing steps which analysts have suggested may have contributed the stop-loss buying of the USD. Also affecting the earlier rise in the USD is the ongoing economic recovery in the United States. Figures from the U.S. continue to support the fact that the recovery is slowly but surely taking hold. Japanese trade deficit may very well be an influential factor as well. As the day continues, traders will have to monitor how these factors continue to influence the strength of the USD or, conversely, the weakness of the yen. |
| France Experiences Unexpected Growth Posted: 15 Feb 2012 03:19 AM PST
As fourth quarter GDP numbers came in from around the EU, France presented a pleasant surprise with unexpected growth. As it stands, France is Europe’s second largest economy after Germany. The fourth quarter revealed growth of 0.2% and presented a stark contrast to the struggles of other European economies. Moody’s downgrade of several euro zone countries yesterday, including Spain, Portugal, and Italy, certainly hurt investor confidence and did nothing to turn around the economic downturn in Spain. France’s growth could help stave off an overall recession in the euro zone after the fourth quarter saw French companies investing and consumers spending. |
| Posted: 15 Feb 2012 02:38 AM PST
Germany released its GDP numbers this morning and revealed that fourth quarter shrinkage was not as severe as some forecasts predicted. German GDP was down 0.2% after growing by 0.6% in the third quarter of last year. While the news is certainly nothing to celebrate, many analysts are confident in the overall health of the German economy. Unemployment levels remain at their lowest point in two decades and the country is still the main player on the European stage. There still remains the looming Greek debt crisis that threatens to hamper several economies in the euro zone, as we have seen with Spain and Belgium being dragged down into economic downturns. However, German ministers expressed their confidence that their economy would have the durability to withstand such risks. |
| Tension Regarding Greek Bailout Posted: 15 Feb 2012 01:59 AM PST
During yesterday’s New York session the USD/EUR found itself making gains but as the day closed and moved into Asian hours, the USD retreated somewhat. What seems like erratic behavior on the part of the USD could actually have more to do with news coming out of Europe. Although the Greek parliament approved a fresh set of austerity measures earlier this week, surrounding European nations have been somewhat muted in their response. This has made an impact on the EUR and the S&P 500, and as these move in one direction be aware that the USD is liable to move in the opposite direction. Tension is mounting regarding the possibility of a second Greek bailout package. There have been several reports that there remains much to be done on the part of EU ministers in order to pass a second bailout package. As time goes on without a clear idea of if or when exactly the bailout package will be passed traders are expressing their unease. As we move on this afternoon, there is a strong possibility that the EUR will experience erratic behavior against all currencies. |
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