The Australian economy fared reasonably well during the 2008-2009 global financial crisis, primarily because the Reserve Bank quickly lowered interest rates and allowed a massive exchange rate depreciation, which shielded the economy from falling commodity prices.
Since the basic model of macroeconomic policy in the Eurozone is deflationary, sluggish growth in the Euro bloc continues.
Yes, we do expect this downward trend to continue, due to the unfavourable macroeconomic situation in the Eurozone.
We expect the US Dollar to come under pressure in the month ahead.
We did not actually expect 50 basis points cut. Our forecasting was 25 basis points and then further 25 points at the beginning of June. We expect the forecast of 100 basis points total cuts in this cycle. That forecast was made in July of the last year. Essentially, with the two rate cuts that we had late last year
I believe that the size of the additional asset purchase programme is not large enough to nearly cause depreciation of the Yen.
I am not sure right now whether gold is actually considered by the broader market as a safe haven.
Looking at the recent performance, the Australian Dollar has been trending down, but it has been doing so in a volatile range.
Recently Thomas Jordan was appointed as a new interim president of the Swiss National Bank. Are there going to be any significant changes in the policy of SNB regarding the Swiss Franc? Where the EUR/CHF will be heading? What will be the main drivers for the EUR/USD movement? All these questioned were addressed to Sonja Marten, Currency Strategist at DZ
The US economy is showing signs of recovery.
The Canadian Dollar has been very static against the US Dollar.
We have got a trade recommendation of selling the Euro and buying the Sterling. We think that the UK economy is performing relatively well, at least compared to the Eurozone; however, not as good as the US economy over the recent months. We suggest looking for low 80-ies over the coming 2 to 3 months.
With refineries in the maintenance, weak seasonal demand between heating and driving season, Saudi Arabia likely to continue to hold output high even if Strategic Petroleum Reserves are released.
Sean Callow, Senior Currency Strategist at Westpac, shared with Dukascopy Westpac's Market Outlook for April 2012.
EUR/USD still holds quite well at the current level given all the turmoil that we have been through.
We believe that the US Dollar has been oversold recently. Going forward we expect the Dollar to benefit from strong US data, particularly the Fed is currently undecided on whether or not it will be de pursuing the QE3 or any source of further easing at the end of the 2Q.
We do not think EUR/CHF is going to move at all, the pair is going to stay at 1.20 and it is not going to move very far in our view, while USD/CHF will climb to 0.96.
The Bank of Spain said on 27 March that the Spanish economy contracted again in the 1Q of 2012, after declining 0.3% in the three months to December. Moreover, the Bank expects that the economy to shrink 1.5% in 2012, due to high unemployment rate, meaning low income tax revenues and high demand for benefits.Dukascopy asked Santiago Carbo-Valverde, Professor of
For more than three years, China has been developing a strategic plan to globalize the Yuan. It was announced last week , that China is planning to extend the Yuan-denominated loans to BRICS countries, which would be a significant step towards increasing the "people's currency" role in cross-border trade settlement.Following the interview with Roy Teo, FX Strategist at ABN Amro
The US Dollar appreciated against a basket of major currencies on Tuesday. The dollar's recent strengthening has been driven by improving economic data of the US and the Federal Reserve's positive outlook.C. Hecht, Currency Strategist at Commerzbank, evaluated the greenback's performance and gave a forecast for the US Dollar against the basket of currencies for a short and long term.
The Euro and the Australian Dollar reached their highest levels against the Japanese currency since October '11 and May '11, respectively, while the US dollar slightly lost its value due to a setback last week. Dukascopy interviewed the Head of FX Strategy at JP Morgan Chase & Co in Singapore concerning a forecast for ASD/JPY, EUR/JPY and USD/JPY.
For more than three years, China has been developing a strategic plan to globalize the Yuan. It was announced last week , that China is planning to ex-tend the Yuan-denominated loans to BRICS countries, which would be a significant step in increasing the "people's currency" role in cross border trade settlement.
Dukascopy is carrying out a research to evaluate the current Libor-setting system, find out whether new measures proposed by the BBA can combat the potential future manipulations.
The recent NZD performance can only be described as strong. The currency is currently around 25% above its long-run average or around 30% above its PPP equilibrium. While the high NZD partly reflects positive cyclical fundamentals like high NZ commodity prices, the currency still looks a shade overvalued.