Canadian Dollar Advances as Current-Account Deficit Narrows

The Canadian dollar advanced today against its US peer as the nation’s current-account deficit shrank last quarter, adding to speculations that the central bank may raise interest rate in the future.
The currency declined versus the euro. The Canadian current-account shortage narrowed by C$0.5 billion to C$14.1 billion in the first quarter of 2013. Analysts have expected an increase. The positive data added to evidences that the Bank of Canada can withdraw some stimulus without hurting the economy. The loonie was especially strong against the greenback, which was weakened by negative macroeconomic reports from the United States. The Canadian currency also trimmed its losses versus the euro, but was unable to erase the drop completely. USD/CAD was down from 1.0348 to 1.0302 as of 19:22 GMT today. EUR/CAD traded at 1.3440 after rallying from 1.3389 to 1.3502 — the highest since April 17. CAD/JPY ticked up from 97.68 to 97.87. If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.
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Franc Rises as GDP Growth Beats Expectations

The Swiss franc rose today as economic growth in Switzerland exceed analysts’ expectations, attracting investors to the nation’s assets and supporting the currency’s role as a safe haven. Swiss gross domestic product expanded 0.6 percent in the first quarter of 2013 from the previous three months.
Market participants have hoped for just 0.2 percent growth. The report said: Positive contributions to growth came from private consumption, investments in construction and from the trade balance, whilst investments in machinery and equipment by contrast decreased. The Swiss economy demonstrated a stark contrast to the economy of the eurozone that suffers from recession. Such advantage allowed the franc to gain despite the efforts of the Swiss National Bank to weaken the currency. USD/CHF went down from 0.9613 to 0.9531 and EUR/CHF fell from 1.2441 to 1.2433 as of 20:51 GMT today after rising to 1.2490. CHF/JPY edged up from 105.15 to 105.67. If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below. http://www.topforexnews.com/

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Aussie Drops with China’s Manufacturing

The Australian dollar slumped today, reaching the lowest level in a year against the US dollar, as China’s manufacturing contracted this month and the US Federal Reserve hinted that quantitative easing may be reduced.
The HSBC Flash China Manufacturing Purchasing Managers’ Index dropped from 50.4 in April to 49.6 in May. It was expected to be little changed at 50.5. A reading below 50.0 indicates contraction of the sector. The Aussie (as the Australian currency is nicknamed) fell after the data and talks about an end to the Fed’s stimulus program did not help the currency either. AUD/USD dropped from 0.9698 to 0.9646 as of 8:49 GMT today. AUD/JPY sank from 100.02 to 97.55. If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below. http://www.topforexnews.com/

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Franc Drops as Jordan Speaks on Negative Interest Rates & Franc Cap

The Swiss franc dropped today as Swiss National Bank President Thomas Jordan talked about possibility of negative interest rates and shifting of the cap on the franc. Jordan warned about negative consequences of a strong currency: An appreciation of the franc would endanger price stability and have structurally grave consequences for the Swiss economy. He also spoke about changing the franc’s ceiling:
The adjustment of the minimum exchange rate is something that principally belongs to the options if needed. We will maintain the minimum exchange rate for as long as necessary. Negative interest rates are in the cards too, though they could have “side effects”. Indeed, the International Monetary Fund described adverse effects of negative rates, but was optimistic about the idea nevertheless. USD/CHF was up from 0.9699 to 0.9801 as of 23:39 GMT today. EUR/CHF advanced from 1.2518 to 1.2586. CHF/JPY ticked down from 105.59 to 105.24. If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below.

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Loonie Falls as Oil Drops and Fed Considers Reduced Easing

Canadian dollar is losing ground today, dropping as the the US Federal Reserve considers reducing its economic stimulus efforts. It’s also not helping the loonie that oil prices are dropping again. Dollar strength is the story across the board today, and that is affecting the loonie as well.
The news that the Federal Reserve might reduce its quantitative easing program is contributing to dollar strength today, and the Canadian dollar is following those flows. With the dollar stronger, commodities are struggling. Oil prices are lower today, and that affects the loonie as well. Oil is Canada’s main export, and lower oil prices mean a weaker Canadian dollar. As a result, it is little surprise that the Canadian dollar is a little bit lower, too. Many Forex traders are also looking forward to changes coming in Canada and speculating about what’s next. Bank of Canada head Mark Carney will soon move across the Atlantic to take over as the head of the Bank of England, and there is interest in what happens next for policy after he is gone. At 13:10 GMT USD/CAD is up to 1.0283 from the open at 1.0242. EUR/CAD is up to 1.3231 from the open at 1.3194. GBP/CAD is little lower, moving down to 155.6145 from the open at 1.5625. If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below. http://www.topforexnews.com/

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UK Inflation Slows, Pound Weakens

The Great Britain pound weakened today after data showed that inflation slowed last quarter more than was predicted by analysts, reigniting concerns about the UK economy. The Consumer Price Index rose 2.4 percent in the first three months of 2013 from a year ago, slowing from the growth of 2.8 percent in the fourth quarter of 2012. The median forecast was at 2.6 percent. Other reports today were also negative, spoiling optimism caused by the previous macroeconomic data.
The minutes of the last Bank of England’s policy meeting will be released tomorrow and they may reveal what policy makers were thinking about the future monetary policy. GBP/USD dropped from 1.5253 to 1.5172 as of 10:00 GMT today. GBP/JPY was at 155.75 after rising from 155.98 to 156.52. If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below. http://www.topforexnews.com/

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AUD/USD Falls After RBA Minutes, Losses Limited

The Australian dollar fell against its US peer today after the Reserve Bank of Australia released the minutes of its last policy meeting.
The drop was small, however, and the currency gained against the Japanese yen at the same time. The RBA minutes were dovish and said: Conditions in the business sector, as assessed in surveys, generally had remained below average, possibly in part because the exchange rate had remained high despite lower export prices and interest rates. Policy makers also thought that “the inflation outlook provided scope to ease monetary policy further, should that be necessary to support demand”. All in all, the minutes were negative for the Aussie, but the currency did not look bothered too much by them, most likely because anticipation of additional stimulus was already priced in. AUD/USD traded at 0.9792 as of 9:36 GMT today after falling from 0.9807 to 0.9748. AUD/JPY advanced from 100.28 to 100.53, while its daily high was at 100.92. If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below. http://www.topforexnews.com/

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