Franc Rises vs. Euro, Breaks Ceiling

The Swiss franc broke thorough the cap against euro for the first time it was introduced half a year ago. The currency fell against the US dollar for the fourth consecutive trading session.



The franc rose past the ceiling of 1.20 versus the euro for the first time the Swiss National Bank introduced it in September last year. It was no surprise to market analysts as the currency was steadily rising since the initial slump after the introduction of the cap. All previous interventions of the SNB were unsuccessful and it was just a matter of time before the current one would fail. Saying that, the introduction of the ceiling was the most successful attempt to intervene, for now.

EUR/CHF was at 1.2020 as of 13:15 GMT today after falling from 1.2035 to 1.1997 — the lowest since September 6. USD/CHF was up from 0.9158 to 0.9215.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

Spanish Yields Rise, and the Euro Falls



As concerns about the Spanish debt situation continue, and as worries about what’s next for the eurozone resurface, the euro is heading lower. The 17-nation currency is struggling against other major currencies today.

One of the biggest worries right now is that Spain will not be able to stick to its austerity budget, meeting its targets. Due to these concerns, it’s more difficult to sell bonds to investors. Higher yields are being offered, and that is an indication that there might be troubles down the road.


With Spain bringing sovereign debt into focus again, the euro is faltering. Indeed, euro is down against other majors, including the US dollar, UK pound and Japanese yen. The situation shows a certain amount of risk aversion, and this is reflected by lower equity prices today.

The news has many turning to the US dollar as a safe haven. Greenback is also considered a good choice against the euro, since the latest unemployment numbers are indicating economic recovery, while the eurozone economy continues to struggle even as the debt situation remains somewhat dire.

At 13:46 GMT EUR/USD is down to 1.3054 from the open at 1.3143. EUR/JPY is lower at 107.3395, down from the open at 108.3620. EUR/GBP is also down, falling to 0.8248 from the open 0.8271.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

Mexican Peso Declines as Spanish Debt Auction Makes Traders Concerned

The Mexican peso declined today for the second day as the negative impact of concerns about the eurozone, caused by the Spanish debt auction, overshadowed the positive effect of improving employment in the United States.


Spain sold €2.6 billion of bonds today. That’s barely above the minimum target. The borrowing costs climbed, while earlier Spain said that public debt will surge to a record this year. The yield on Mexico’s government securities maturing in 2024 increased one basis point to 6.46 percent. The peso also fell as appeal of riskier currencies decreased after the Federal Reserve signaled that it may refrain for quantitative easing.

USD/MXN rose from 12.7824 to 12.8400 as of 13:56 GMT today.

If you have any questions, comments or opinions regarding the Mexican Peso, feel free to post them using the commentary form below.

US Dollar Index Rises Today



US dollar index is gaining today, heading higher as a combination of risk aversion and better news in the United States help boost the greenback. Worries about the eurozone are sending Forex traders to safe havens, while the better news in the United States is helping cement some of the gains.


US dollar is heading higher today against major counterparts. There is an interesting combination of risk aversion and better economic data in the United States today, which is helping the greenback against other currencies. Greenback is especially up against the euro, which is struggling on concerns about Spain and the higher bond yields seen.

However, gains for the US dollar are also coming from better data. Same store sales data is mostly better than expected in the United States, and unemployment claims dropped as well. This better news is showcasing the possibility of economic recovery in the United States, contrasting the situation in the eurozone, which seems to be deteriorating to some degree.

Until the eurozone manages to solve its problems, there is a good chance that the US dollar will remain mostly stronger over all — especially if the economic data in the United States continues to improve.

At 14:29 GMT the US dollar index is up to 80.05 from the open at 79.737. EUR/USD is down to 1.3060 from the open at 1.3143. GBP/USD is down to 1.5830 from the open at 1.5890.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Canada’s Employment Improves Beyond Expectations, Loonie Profits



The Canadian dollar climbed today, erasing earlier losses against the Japanese yen, as Canada’s employers added much more jobs than was predicted by analysts and as the unemployment rate unexpectedly dropped.

Canada’s employment increased by 82,000 jobs in March, following the decline by 2,800 jobs in February. That’s significantly above the expected change by 11,300 jobs. What’s more, the unemployment rate was expected to rise from 7.4% to 7.5%, but it fell to 7.2% instead. Another positive data was the growth of building permits by 7.5% in February, following the drop by 11.4% in January.


The loonie was under pressure as concerns about the problems with European debt were returning. Nevertheless, the positive domestic macroeconomic data, coupled with positive economic reports from the United States, outweighed any negativity that was present on the Forex market.

USD/CAD was down from 0.9960 to 0.9930 and EUR/CAD fell from 1.3089 to 1.2968 as of 23:12 GMT today. CAD/JPY advanced from 82.71 to 82.85, following the slump to 81.86.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

Franc Fluctuates Near Ceiling



The Swiss franc was struggling today as it nears the ceiling set by the Swiss National Bank, testing the resolve of interim Chairman Thomas Jordan to keep the policy of making the currency weaker.

The Swissie has breached the cap of 1.20 francs per euro yesterday, but retreated back below the ceiling. It was the first time the franc reached the cap since it was introduced in September last year. Today, the currency fluctuates near the cap, but didn’t reach as for now. The franc was up against the US dollar as US non-farm payrolls were somewhat disappointing.


EUR/CHF traded at 1.2007 as of 13:00 GMT today after rising from 1.2014 to 1.2023. USD/CHF was down from 0.9197 to 0.9165.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

Dollar Harmed by Worse-Than-Expected Non-Farm Payrolls



The US dollar weakened today as non-farm payrolls came out somewhat disappointing, increasing prospects for a next round of quantitative easing by the Federal Reserve and reducing appeal of the greenback.

Non-farm employment rose by 120,000 jobs in March. That’s significantly below the market expectation of 207,000. The February reading was revised from 227,000 to 240,000. The unemployment rate managed to fall from 8.3 percent to 8.2 percent despite the slowing employment growth, even though it was expected to remain stable. Analysts say that the worse-than-expected employment data in no way guarantee that a next round of easing would be performed, but it increases the possibility of additional stimulus.


EUR/USD was up from 1.3065 to 1.3081 as of 14:36 GMT today, following the advanced to the intraday maximum of 1.3112. USD/JPY slumped from 82.32 to 81.49, while the daily minimum of 81.34 was the lowest since March 8.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Euro Mixed On Remarks from Mario Draghi



Euro is mixed today, dropping against the UK pound, but rising against the US dollar. The economic news today is offering a little uncertainty, and resulting in a degree of choppiness in trading.

Earlier, Mario Draghi, president of the European Central Bank, said that the fear of inflation was high in the 17-nation currency zone. This news came as a surprise to many, who had hoped that the ECB would take steps to stimulate the economy in the face of a possible eurozone recession. Now, though, it appears that this is not likely an option. ECB is likely to keep things the same, in order to battle inflation.


Also affecting the situation is the fact that many Forex traders were disappointed by the jobs report from the United States, showing that March only saw the creation of 120,000 jobs. Euro is higher against the US dollar on this news, but the concerns about the situation in the eurozone have sent it lower against the UK pound.

A mixed outlook is leading to a mixed performance by the euro.

At 14:56 GMT EUR/USD is higher at 1.3083, up from the open at 1.3067. EUR/GBP is down to 0.8240 from the open at 0.8254. EUR/JPY is lower at 106.6575, down from the open at 107.6150.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

UK Pound Takes the Upper Hand



UK pound is higher today, gaining as things take a turn toward the positive. The news that stimulus is unlikely to come in the eurozone is helping the pound against the euro, and disappointing news in the United States is helping the pound against the US dollar.

Sterling is higher against the euro today, thanks to remarks from Mario Draghi to the effect that inflation remains a problem in the eurozone. It seems unlikely that the ECB will engage in stimulus, and the United Kingdom appears to be making a recovery — even though it’s a very slow one.


UK pound is also higher against the US dollar as the latest payrolls data comes in from March. With only 120,000 new jobs created in March, many are disappointed and were hoping for more. The result has been a weakening US dollar as traders try to figure out what happens next, and as analysts try to assess the strength of the recovery.

Good news in Britain is also helping, with PMI exceeding forecasts, and retail sales gaining. The result is that there is some hope that the British economy might be back on track. It is little surprise that the pound is higher against the euro.

At 15:57 GMT GBP/USD is higher at 1.5877, up from the open at 1.5828. EUR/GBP is lower at 0.8243, down from the open at 0.8254.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Canadian Dollar Slides on US Payrolls & European Debt Problems



The Canadian dollar slipped as US nonfarm payrolls disappointed Forex market participants, rising far less than was expected, and on reemerging concerns about the debt problems in Europe.

US nonfarm employment advanced by 120,000 jobs in March. That’s not a bad figure by itself, but it’s significantly below the market expectations of 207,000. On the bright side, the increase in the preceding month was revised upwardly and the unemployment rate unexpectedly went down from 8.3 percent to 8.2 percent. Unfortunately for riskier assets, traders paid more attention to the negative part of the report, making them prefer safety over higher yield.


Europe also hurt risk appetite as the rising borrowing costs in Spain cause the speculation that the country may request a bailout. That hasn’t surprised market analysts as many of them predicted that the delay of a default in Greece would only shift attention of investors to other indebted nations.

USD/CAD rose from 0.9930 to 0.9968 and EUR/CAD was up from 1.2974 to 1.3048. CAD/JPY went down from 82.89 to 81.80, while the daily minimum of 81.51 was the lowest since March 8.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

US Dollar Weakens as Risk Appetite Makes a Cautious Appearance

US dollar is weakening today as risk appetite makes a cautious appearance in the markets. Yesterday, greenback was higher, and gold prices reached a low not seen for 10 weeks. Today equities are still struggling, but higher gold is helping the euro against the US dollar, and some Forex traders are looking for risk.


Some of the fears surrounding economic growth in the eurozone and in China have eased somewhat, and that has provided some of the high beta currencies a little boost today. Euro is benefitting as fears about the eurozone ease somewhat, and as gold prices rise.


However, some think that the US dollar will return to strength again soon. The troubles in the eurozone still have not been completely resolved, and the outlook in the United States continues to strengthen. Expectations for better economic performance are likely to help support the greenback — especially when the performance of the US economy is compared to the eurozone economy.

For now, though, a small amount of risk appetite is present in the Forex market. It may not last long, though, especially if other riskier assets, like equities, continue to struggle.

At 13:27 GMT EUR/USD is up to 1.3242 from the open at 1.3198. GBP/USD is up to 1.5840 from the open at 1.5814. USD/JPY is lower at 82.3925, down from the open at 82.5780.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

UK Pound Higher Against Greenback, Aussie




UK pound is finding some strength today against the US dollar and the Australian dollar. Sterling is rising against the greenback as risk appetite makes an appearance, and gaining against the Aussie as the news about China continues to weigh on the Down Under currency.


UK pound has been struggling recently, thanks in large part to an unpopular budget announced by George Osborne. Concerns about the fact that the budget cuts spending, as well as taxes, are weighing as it appears that there won’t be much to help stimulate the economy.



Today, though, sterling is seeing some success. While the British currency is losing ground to the euro, it is gaining against the US dollar. Greenback is under pressure today as gold prices bounce back, and as a measure of risk appetite returns. This general risk appetite is helping the UK pound.

Against the Aussie, the pound is getting help from the fact that China is showing signs of slowing growth. Australia is a major trading partner with China, and with Chinese demand in doubt, the Australian dollar is pulling back, leaving room for the sterling to gain.

At 14:16 GMT GBP/USD is at 1.5837, up from the open at 1.5818. EUR/GBP is up to 0.8352, up from the open at 0.8342. GBP/AUD is gaining, moving up to 1.5258 from the open at 1.5209.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

Canadian Dollar Rises as Core Inflation Quickens



The Canadian dollar erased its losses against its US counterpart as core inflation data was better than predicted and after prices for crude oil jumped. The currency was flat against the Japanese yen and fell versus the euro.

Annual consumer price inflation was 2.6 percent in February, while core inflation was 2.5 percent. Inflation was below forecast, while core inflation was above the predicted value. On month-over-month basis, the Consumer Price Index rose 0.4 percent last month, exactly as forecasters predicted, and core CPI also advanced 0.4 percent, slightly above forecasts.



Crude oil prices also provided a support to the loonie. Futures for delivery of crude oil in May gained $1.53 to $106.88 per barrel. Crude is the main export of Canada.

USD/CAD traded at 0.9976 as of 20:53 GMT today after earlier it advanced from 0.9993 to 1.0033 — the highest level since February 27. CAD/JPY was down from 82.61 to 82.49 after sliding to 81.83, the lowest since March 8. Meanwhile, EUR/CAD rose from 1.3184 to 1.3241 and the daily maximum of 1.3287 was the highest since February 29.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

Australian Dollar Gains as Fed Considers Dropping of Monetary Easing




The Australian dollar rose, erasing its previous losses, as stocks gained and prices for raw materials increased as market sentiment gradually turns to risk appetite and on the speculation that the Federal Reserve may reduce stimulus for the US economy.

James Bullard, President of the Federal Reserve Bank of St. Louis, thought that it may be time to drop the monetary easing:


With numerous monetary policy actions still on the table, and others still affecting the economy with a lag, it may be especially difficult to remove policy accommodation at the appropriate pace and at the appropriate time. One may want to approach such a situation with caution.

Bullard considered the US economy is recovering fast enough to exist without excessive stimulus. Fed Chairman Ben Bernanke wasn’t so optimistic about the recovery of the US economy and expressed his view:

Consumer spending is not recovered, it’s still quite weak relative to where it was before the crisis. In terms of debt and consumption and so on we’re still way low relative to the patterns before.

Crude oil gained on concerns about disruption of supplies from Iran. Metals, including gold, silver, platinum, and copper also advanced. The Aussie profited from the rally of commodities and also from expansion of carry trade as speculators were buying the yen to buy assets denominated in the Australian currency.

AUD/USD rose from 1.0395 to close at 1.0465. AUD/JPY went up from 85.85 to 86.16, following the drop to 85.17. EUR/AUD closed lower from 1.2689 to 1.2673, while earlier it advanced as high s 1.2754 — the highest rate since December 30.

If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.