Euro Weakens and Aussie Declines

The euro fell for the first time in six days against the dollar as European Union leaders met in Brussels amid concern Greek bailout negotiations will hinder efforts to resolve the financial crisis.

The 17-nation currency slid for a third day versus the yen as Italy raised less than its maximum target at a bond sale after Fitch Ratings downgraded the nation last week. The Swiss franc strengthened to the highest level against the euro since September. South Africa’s rand and Australia’s dollar slid as stocks fell, damping demand for higher-yielding assets.

“The summit is happening today but we’re not seeing any progress on the private-sector involvement in Greece or improvement on a fiscal compact,” said Brian Kim, a currency strategist in Stamford, Connecticut, at Royal Bank of Scotland Group Plc. “There was some hope last week and it’s gotten pulled back, and that’s affecting broader risk sentiment.”

The euro fell 1 percent to $1.3085 at 9:06 a.m. in New York, after rising 2.2 percent last week. The common currency dropped 1.2 percent to 100.19 yen. The euro declined 0.1 percent to 1.20535 Swiss francs after sliding to 1.2043, the weakest since Sept. 19. The dollar was little changed at 76.68 yen.

The Swiss National Bank in September capped the franc’s strength at 1.20 per euro. The president of the central bank at the time, Phillip Hildebrand, resigned earlier this month.

Global Economic Calendar (31-January-2012)

Global Economic Calendar for 31st January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (30-January-2012)

Global Economic Calendar for 30th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Dollar Declines to Five-Week Low Versus Euro on Fed Outlook

The dollar fell to a five-week low against the euro on speculation the Federal Reserve will seek to bring down unemployment by introducing another round of bond purchases, debasing the currency.

The U.S. currency declined versus all but one of its 16 major counterparts after policy makers said yesterday the benchmark interest rate would stay low until at least late 2014, pushing back a previous date of mid-2013. The Canadian dollar strengthened to parity with the greenback for the first time since November. Australia’s dollar rose to the strongest since October as Russia said it may start buying the currency.

“The dollar has been getting sold across the board rather heavily since the Fed’s announcement,” said Neil Jones, head of European hedge fund sales at Mizuho Corporate Bank Ltd. in London. “The headlines were quite dovish and these affected the market, with the impulse reaction being to sell dollars.”

The dollar fell 0.3 percent to $1.3145 per euro at 7:01 a.m. in New York after sliding to $1.3175, the weakest level since Dec. 21. The U.S. currency dropped 0.2 percent to 77.64 yen. The euro was little changed at 102.04 yen after rising to 102.17 yen, the strongest since Dec. 23.

The Fed’s Open Market Committee “recognizes the hardships imposed by high and persistent unemployment in an underperforming economy, and it is prepared to provide further monetary accommodation,” Chairman Ben S. Bernanke said yesterday at a press conference in Washington.

Global Economic Calendar (27-January-2012)

Global Economic Calendar for 27th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Dollar Strengthens as Greek Debt-Discussion Stalemate Spurs Safety Demand

The dollar rose, reaching the highest level this year against the yen, as European policy makers and Greek bondholders failed to reach an agreement on a debt-swap plan for the indebted nation, spurring safety demand.

The yen fell against 12 of 16 major peers tracked by Bloomberg after the Bank of Japan cut its economic growth forecast for next year. The euro reached the highest level in almost four weeks against the yen earlier after a report showed European services and manufacturing industries unexpectedly expanded in January. The pound rose against most peers after a report showed the budget deficit shrank in December more than predicted.

“We’re getting a broad dollar rally across the board on a little bit of risk aversion,” said Boris Schlossberg, director of research at online currency trader GFT Forex in New York. “Europe’s PMI data was much more positive than the market thought. That’s giving the broader growth scenario a boost, but the beneficiary right now is the dollar because the euro is down over this issue of Greek private sector investment.”

The dollar rose 0.9 percent to 77.73 yen at 9:36 a.m. in New York and touched 77.82, the highest level since Dec. 29. The greenback appreciated 0.4 percent to $1.2961 per euro. The common currency rose 0.5 percent to 100.79 yen.

Global Economic Calendar (25-January-2012)

Global Economic Calendar for 25th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (24-January-2012)

Global Economic Calendar for 24th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Dollar, Yen Weaken Before Merkel

The dollar and yen weakened against higher-yielding currencies before Germany’s chancellor meets with the International Monetary Fund’s managing director amid signs European leaders are taking steps to end the debt crisis.

The U.S. currency slid the most versus Brazil’s real and New Zealand’s dollar as stocks and commodities advanced amid bets the Peoples Bank of China may move to spur growth. Implied volatility (JPMVXYG7) for currencies of advanced economies fell to a six- month low. The euro gained versus the dollar on speculation investors pared wagers the 17-nation currency will weaken.

“It’s about the performance of commodity currencies today,” said Mary Nicola, a New York-based currency strategist at BNP Parisbas SA. “There are further expectations of easing from the PBOC. If you have more easing, it’s more supportive of credit generation and investment, so you’re going to help support commodities and raw materials.”

The dollar fell 0.1 percent to $1.2778 per euro at 11:45 a.m. in New York after weakening 0.4 percent yesterday. The yen declined 0.1 percent to 98.20 per euro. The dollar was little changed at 76.85 yen.

The implied volatility of three-month options for Group of Seven currencies fell to 10.6 percent, according to a JPMorgan Chase & Co. index, the lowest level on a closing basis since July 8. Reduced volatility indicates less probability of currency fluctuations that may erode profit on investments in higher-yielding assets.

Global Economic Calendar (11-January-2012)

Global Economic Calendar for 11th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Euro Snaps Three-Day Drop Against Dollar as Merkel Meets Sarkozy on Debt

The euro snapped a three-day slide against the dollar as the leaders of Germany and France met to craft a plan for rescuing the 17-nation common currency.

The Swiss franc advanced after central-bank Chairman Philipp Hildebrand quit following currency-trading allegations. New Zealand’s dollar and Brazil’s real were the top performers versus the dollar as commodities rose. The euro gained versus the majority of its most-traded peers after euro-area leaders said they may complete a new budget rulebook by Jan. 30. U.S. retail sales rose last month, data this week may show.

“This meeting was just setting up for the finance-minister meeting later this month,” Mark McCormick, a New York-based currency strategist at Brown Brothers Harriman & Co., said after the talks between Merkel and Sarkozy. “We have a little tug of war between better macro data in the United States and policy developments in the euro zone.”

The shared currency advanced 0.3 percent to $1.2751 at 9:34 a.m. New York time, after earlier falling to $1.2666, its weakest level since Sept. 10, 2010. The euro was little changed at 97.96 yen after dropping earlier to 97.28, the least since December 2000. The dollar fell 0.2 percent to 76.83 yen.

The euro is unlikely to rise over $1.28, McCormack said.

Futures traders increased their bets to a record high that the euro will decline against the dollar. The difference between wagers that the shared currency would fall versus those that it would rise -- so-called net shorts -- surged to 138,909 in the week ended Jan. 3, according to data from the Commodity Futures Trading Commission.

Global Economic Calendar (10-January-2012)

Global Economic Calendar for 10th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (9-January-2012)

Global Economic Calendar for 9th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Euro Weakens Amid Concern Region’s Debt Crisis Is Worsening

The euro fell from almost a one-week high against the dollar after a European report showed inflation slowed and Italy’s biggest bank said it needs to raise more capital, fueling bets the region’s debt crisis is worsening.

The 17-nation currency dropped toward an 11-year low against the yen after UniCredit SpA’s plan to sell shares spurred concern European banks will need to raise more capital. The euro slid versus most major peers after El Pais newspaper said the Spanish government helped the Valencia region make an overdue payment to Deutsche Bank AG. The pound climbed to a 15- month high versus the shared currency.

“The German auction wasn’t stellar, and you can trace the weaker euro to concerns in Spain that are starting to bubble to the surface again,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. “There’s definitely a somewhat more defensive tone to the market today.”

The euro fell 1 percent to $1.2924 at 11:15 a.m. in New York after rising to $1.3077 yesterday, the highest level since Dec. 28. The common currency depreciated 1 percent to 99.16 yen. It dropped to 98.66 yen on Jan. 2, the weakest since December 2000. The dollar was little changed at 76.74 yen.

Europe’s shared currency slid 5.6 percent over the past six months, the worst performer among the 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, as investors sought safer assets amid the region’s debt turmoil. The dollar gained 7.3 percent and the yen climbed 12 percent.

Global Economic Calendar (05-January-2012)

Global Economic Calendar for 5th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Dollar Weakens Versus All of Its Major Peers

The dollar fell the most more than a month against the euro as signs manufacturing is expanding in the U.S. and China damped the appeal of safer assets.

The greenback weakened versus all of its most-traded peers after a U.S. factory gauge rose at the fastest in six months. Data earlier this week showed gains in factory indexes for China and India. The euro advanced from an 11-year low versus the yen after German unemployment fell more than forecast. Australia’s and New Zealand’s dollars rose to the strongest since November.

“One of the factors that’s undermining the dollar today is a reversal of year-end trades into the safe haven of the dollar,” said Michael Woolfolk, senior currency strategist in New York at Bank of New York Mellon Corp., the world’s largest custodial bank, with more than $26 trillion in assets under administration. “It’s helping reverse international equities and cause some dollar softness right now.”

The dollar fell 0.9 percent to $1.3047 per euro at 12:40 p.m. in New York after dropping as much as 1 percent, the biggest intraday decline since Nov. 30. The U.S. currency declined 0.2 percent to 76.73 yen. The euro gained 0.6 percent to 100.10 yen after falling to 98.66 yesterday, the weakest level since December 2000.

The Standard & Poor’s 500 Index climbed 1.7 percent.

Global Economic Calendar (04-January-2012)

Global Economic Calendar for 4th January 2012

**Time is with respect to Singapore Time (GMT+8:00)

Global Economic Calendar (03-January-2012)

Global Economic Calendar for 3rd January 2012

**Time is with respect to Singapore Time (GMT+8:00)