Canadian Dollar Rises First Time in 3 Days as Investor Risk Aversion Drops

The Canadian dollar increased for the first time in three days against its U.S. counterpart as crude oil prices rose and investor risk aversion eased.

Canada’s dollar, also known as the loonie, remained higher after a government report showed the annual inflation rate was unchanged in November, as rising food and automobile prices offset lower costs for gasoline.

The loonie gained 0.5 percent to C$1.0336 per U.S. dollar at 7:16 a.m. Toronto time. It touched C$1.0424 on Dec. 14, the weakest level this month. One Canadian dollar buys 96.75 U.S. cents.

Futures on crude oil, Canada’s biggest export, rallied 0.9 percent to $94.90 a barrel in New York. Futures on the Standard & Poor’s 500 Index increased 0.8 percent.

The consumer price index rose 2.9 percent in November from a year earlier, Statistics Canada said today in Ottawa, matching the median of 22 forecasts in a Bloomberg News survey of economists. On a monthly basis, consumer prices rose 0.1 percent in November, also in line with economist expectations, down from a 0.2 percent pace in October.

Bank of Canada policy makers have kept the bank’s key interest rate at 1 percent since September 2010. Lower interest rates make a country’s currency less attractive to foreign investors.

Although Europe’s widening debt crisis is raising risks to the global economy, there is “considerable monetary stimulus” in Canada with interest rates near historic lows and the financial system “functioning well,” policy makers led by Bank of Canada Governor Mark Carney said in a Dec. 6 statement.

Euro Gains Versus Dollar as German Business Sentiment Rises

The euro rose from within a half cent of an 11-month low against the dollar after an Ifo report showed German business confidence unexpectedly increased and borrowing costs fell at a Spanish bill sale.

The U.S. currency fell against all of its 16 most-traded counterparts tracked by Bloomberg on reduced demand for a refuge. Sweden’s krona and the Australian dollar rallied after central banks signaled they may hold off on cuts in interest rates at the start of 2012. The pound gained as U.K. consumer confidence rose from a record low.

“The Ifo index for Germany certainly surprised to the upside,” said Ulrich Leuchtmann, head of currency strategy at Commerzbank AG in Frankfurt. “This is good news for the euro.”

The 17-nation euro appreciated 0.5 percent to $1.3067 at 7:21 a.m. New York time, after falling to as low as $1.2946 on Dec. 14, the least since Jan. 11. Europe’s shared currency strengthened 0.4 percent to 101.83 yen. The dollar decreased 0.1 percent to 77.94 yen.

The Stoxx Europe 600 Index of equities gained 0.4 percent, and futures on the Standard & Poor’s 500 Index advanced 0.8 percent. Treasury 10-year notes fell, pushing the yield three basis points higher to 1.84 percent.

Australia’s dollar rose 1 percent to 99.94 U.S. cents after minutes of the last central bank meeting showed policy makers saw a continued expansion in the domestic economy even as Europe’s debt crisis weighed on global growth. “Solid growth” among trading partners has tempered the need for lower rates, the minutes said.

Global Economic Calendar (21-December-2011)

Global Economic Calendar for 21st December 2011

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

Dollar Falls as Stronger Economic Data

The dollar dropped against the majority of its most-traded counterparts as U.S. economic data showed a quickening recovery and European funding stress eased, damping demand for the safety of the U.S. currency.

The 17-nation euro rallied from an 11-month low against the dollar as Spain sold more than its maximum target at a debt auction and a report showed European manufacturing and service industries contracted less this month than economists forecast. The Swiss franc advanced after the central bank refrained from introducing additional measures to weaken the currency. The Brazilian real and the Australian dollar strengthened on improved demand for higher-returning assets.

“With the Spanish bond auction, yields are still high, but when you’re able to sell all the bonds that they wanted to, that’s a good sign,” said John Doyle, a strategist in Washington at currency-trading firm Tempus Consulting Inc. “We followed up with fairly decent numbers here in the U.S. and it has kept with the narrative of a slightly risk-on kind of day.”

The dollar fell 0.3 percent to $1.3020 per euro at 2:06 p.m. in New York, after falling as much as 0.5 percent. Yesterday it reached $1.2946, the strongest level since Jan. 11. The greenback fell 0.3 percent to 77.86 yen. The European currency was little changed at 101.38 yen.

Global Economic Calendar (16-December-2011)

Global Economic Calendar for 16th December 2011

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

Trade Share (14-December-2011)...

Hi everyone. Trade share on the 14th December. Right at FED's announcement on USD Interest Rates.

Went with AUD/USD since the start of 14th December (Singapore Time). FED's annoucement was at 2:15am on 14th December (Singapore Time). From the charts, weakness was showing 5mins before FED's announcement.

This is the total rip done for 14th December, in terms of pips for today alone is 155.5 pips. As of now, market is having breather. If the momentum stays and sellers coming in with their commitment. Will go for another.

I won't be closing my books anytime soon. Might stretch it all till Christmas. 2011, will be the longest year that I keep my books open.

Trade safely everyone.

Euro Falls Below $1.30 as Italy Yields Rise

The euro fell below $1.30 for the first time since January as signs of increased funding stress in Europe damped investor appetite for the shared currency.

The 17-nation euro declined to a 10-week low against the yen as Italian borrowing costs increased at a debt auction and Spanish banks’ borrowings from the European Central Bank climbed by the most in a year. Norway’s krone weakened after the Norges Bank cut interest rates for the first time since 2009. The pound was the biggest gainer against the euro among the major currencies as investors sought protection from the crisis.

“There is a major funding issue,” Jens Nordvig, a managing director of currency research in New York at Nomura Holdings Inc., said today in a “Bloomberg on the Economy” radio interview with Sara Eisen. “The few measures that were taken on the fiscal side were very long-term measures that really didn’t provide any comfort for the short-term liquidity issue. That’s why the news has seen the euro significantly lower.”

The euro slipped 0.5 percent to $1.2972 at 11:56 a.m. New York time, after depreciating to $1.2946, the weakest level since Jan. 11. The shared currency dropped 0.4 percent to 101.32 yen after sliding to 101.10, the lowest since Oct. 4. The dollar rose 0.1 percent to 78.08 yen.

The Standard & Poor’s 500 Index (SPX) fell 1.2 percent and the Thomson Reuters/Jefferies CRB Index of raw materials slid 3 percent.

Global Economic Calendar (15-December-2011)

Global Economic Calendar for 15th December 2011

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

Dollar Extends Gain After Federal Reserve Keeps Low Interest Rates Pledge

The dollar extended gains after the Federal Reserve took no additional monetary policy steps to stimulate the economy.

The U.S. currency rose for a second day as policy makers led by Chairman Ben S. Bernanke repeated their pledge to keep interest rates low through mid-2013, while refraining from taking new actions to lower borrowing costs. The euro fell to an 11-month low against the dollar on concern European leaders won’t agree on ways to expand the region’s rescue capacities as debt-strapped nations struggle to fund their deficits.

“There was no indication of QE3,” 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, referring to the Fed’s policy of asset purchases, known as quantitative easing, or QE. “It led to some modest firming of the U.S. dollar against the majors like the euro.”

The dollar gained 1 percent to $1.3062 at 2:26 p.m. in New York, touching $1.3048, the strongest level since Jan. 12. The shared currency dropped 0.9 percent to 101.81 yen, touching the lowest since Oct. 6. The dollar fell 0.1 percent to 77.94 yen.

Global Economic Calendar (14-December-2011)

Global Economic Calendar for 14th December 2011

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

Just sharing.....

From FXCM dealing desk, as of 2:00am (Singapore Time)

Euro Weakens Amid Concern Region’s Leaders May Fail in Debt Crisis Fix

The euro declined against most of its major counterparts as concern increased that European leaders will struggle to agree to measures needed to stem the region’s debt crisis at a summit this week.

The 17-nation currency traded little changed against the dollar as three euro-area officials said that the European Central Bank may announce a range of measures tomorrow to stimulate bank lending. European leaders gather for a summit in Brussels the next two days. Australia’s dollar rose after gross domestic product grew faster than economists forecast last quarter.

“You have a lot of uncertainty in the market before the meetings,” said Fabian Eliasson, head of U.S. currency sales at Mizuho Financial Group Inc. in New York. “It really comes down to the next two days. The market has high expectations for this and if the market is disappointed you could see risk being taken off and really strong moves.”

The euro was little changed at $1.3409 at 12:34 p.m. in New York, after rising as much as 0.4 percent. It traded at 104.13 yen. The Japanese currency was little changed at 77.66 per dollar.

Global Economic Calendar (08-December-2011)

Global Economic Calendar for 8th December 2011

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

Global Economic Calendar (07-December-2011)

Global Economic Calendar for 7th December 2011

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

EU Revamp Pushed as S&P Issues Warning

German Chancellor Angela Merkel and French President Nicolas Sarkozy strengthened their push for new rules to tighten euro area economic cooperation after Standard & Poor’s said it may downgrade credit ratings across the region.

The leaders of Europe’s two biggest economies responded in a joint statement late yesterday that they “took note” of the move by S&P, while both countries “reinforce their conviction” that common proposals for closer fiscal union in the European Union will “strengthen coordination of budget and economic policy,” and promote stability and growth.

“The actions of the last three years have shown that the euro zone governments are not prepared to act collectively in a way that convinces markets,” said Paul Donovan, deputy head of global economics at UBS AG in London. The S&P move “may perhaps heighten the desirability of coming out with a compelling solution for the French and the Germans.”

Germany and France risk losing their AAA credit ratings in a review of 15 euro nations for possible downgrade, S&P said. At an earlier meeting in Paris, Merkel and Sarkozy said both countries were aligned on backing automatic penalties for deficit violators and locking limits on debt into euro states’ constitutions. Investors say such moves might pave the way for the European Central Bank to do more to fight the debt crisis.

Euro Strengthens Before This Week’s European Summit

The euro advanced, extending last week’s gains versus the dollar and yen, as Italy’s cabinet approved a plan to cut its deficit before a European summit on the region’s sovereign debt crisis.

The 17-nation currency appreciated against most of its 16 major counterparts after people familiar with the negotiations said a proposal to channel European Central Bank loans through the International Monetary Fund may deliver as much as 200 billion euros ($269 billion) to fight the crisis. The yen and dollar weakened as European stocks gained, damping demand for safer investments. The Swiss franc fell for a fourth consecutive day against the euro.

“The euro is benefiting from a general bid for risk,” said Adam Cole, global head of foreign-exchange strategy at RBC Europe Ltd. in London. “The news from Italy helped with the positively received budget package and austerity measures. The euro feels slightly better bid today.”

The euro rose 0.4 percent to $1.3441 at 7:12 a.m. New York time after gaining 1.2 percent last week. The 17-nation currency climbed 0.4 percent to 104.88 yen. The dollar was little changed at 78.02 yen.

German Chancellor Angela Merkel is scheduled to meet French President Nicolas Sarkozy to work on a plan for stricter enforcement of the region’s deficit rules. European Union leaders will hold a summit in Brussels this week.

Global Economic Calendar (06-December-2011)

Global Economic Calendar for 6th December 2011

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

Global Economic Calendar (05-December-2011)

Global Economic Calendar for 5th December 2011

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