The Swedish krona fell today in front of all his comrades negotiated the government cut its growth forecast for the economy, spurring speculation the central bank will not be able to increase lending rates.
Sweden cut its forecast for growth this year of 4.6 percent to 4.1 percent. The forecast for next year fell 3.8 percent to 1.3 percent. The Riksbank will announce its decision on interest rates after the meeting on 7 September.
The OMX Stockholm 30 Index, the nation's index of key shares, fell 0.4 percent. The index has fallen 13 percent this month. Arne Lohmann Rasmussen, chief currency analyst at Danske Bank A / S, said the pension fund can sell the crown after the decline of populations, so an "excellent buying opportunity."
USD/SEK climbed from 6.2926 to 6.3524 as of 21:57 GMT today. The currency pair reached the high of 6.3883 during the trading session.
The U.S. dollar managed to gain against the euro and Swiss franc today, but fell against the Japanese yen as traders left the bases mixed doubt about the prospects for the U.S. currency.
The Standard & Poors Case-Shiller index of home prices fell 4.5 percent in June from a year-over-year basis. That's a better result than the 4.7 percent decline forecast and falling 4.6 percent in May. On the other hand, consumer confidence Conference Board was far worse than forecast, from 59.2 in July to 44.5 in August, while analysts expect the index to be removed only to 52.1.
Reports of tomorrow are not good for the dollar is. The ADP employment report is expected to show slower growth of Americans employed by 102,000, compared with growth in July by 114,000. Economists say that the Chicago PMI showed a fall to 54.3 in August from 58.8 in July.
EUR/USD went down from 1.4510 to 1.4444 as of 21:05 GMT today, while intraday it touched the low of 1.4382. USD/JPY dropped from 76.84 to 76.73, while USD/CHF advanced from 0.8156 to 0.8201.
The currencies of Australia and New Zealand increased today, before falling later, after reports showed that the number of building permits in these countries increased in July.
New Zealand accepts construction rose 6.3 percent in July, after falling 4.3 percent in June. Australia accepts construction rose 1.0 percent in July, seasonally adjusted monthly after falling 3.6 percent in June. Currently, the kiwi tends to decrease, while Australia lost all its gains.
NZD/USD rose from 0.8459 to 0.8486 as of 12:57 GMT today and earlier it touched the intraday high of 0.8535 — the highest level since August 4. AUD/USD traded at 1.0644 today, while earlier it climbed from 1.0656 to 1.0684.
Previously, the proceeds from the book were mainly by investors fleeing the euro and the problems of the European Union to the UK currency is perceived as more secure. However, the macroeconomic data continuously demonstrates that the British economy has its own problems and not much better than the economies of continental Europe.
The growth of the UK economy slowed to 0.2 percent in the second quarter versus the first quarter, while growth in the first quarter of the last three months was 0.5 percent. The figures were even worse in the year-over-year basis and the expansion in the second quarter was 0.7 percent, while increasing in the first quarter was 1.6 percent.
This week is not great for the pound either. GFK Consumer Confidence Index is expected to go down slightly from -30 to -32. Views on the housing sector are mixed. While the index Halifax house prices are expected to show a monthly increase of 0.5 percent in August, compared with 0.3 percent in July, analysts predict HPI National show a slower growth of 0.1 percent this month, down from 0.2 percent in the previous month.
All in all, this week doesn’t look very favorable for the UK currency. In case of a rally, GBP/USD would find strong resistance at 1.6550 level. That was the level of resistance in May and more recently in July. The currency can find support at 1.6250 –1.6300 level as it provided strong support in the second part of July and was the recent base for the current rally. Below that the area somewhat above 1.6100 as that was the floor for the currency, when it has broke to the downside at the beginning of August.
The Russian ruble was removed after the oil has been recovered by the third day of optimism for the world economy, making Russia's currency is more interesting for investors who are willing to risk in search of higher yields.
Futures for delivery of crude oil in October rose 2.2 percent to $ 87.26 a barrel in New York. Optimism, caused by Bernanke's speech on Friday, boosted products. The positive report on personal income and spending in the U.S. was very useful. Crude oil is the main source of export earnings from Russia.
Investors bet on Russia's currency will decline in spite of some positive fundamentals. The oil can be removed if the Energy Department report tomorrow will show U.S. inventories crude oil rose last week.
USD/RUB trade near 28.7875 today as of 2:29 GMT after opening at 28.7855 and falling to 28.7765.
The South KoreThe Canadian dollar gained, reaching the highest level in over a week against the dollar, stocks and commodities rose, so the growth-linked currency attractive to investors.
The Federal Reserve, Ben S. Bernanke boosted optimism in the markets last Friday and still persists. The Standard & Poor's 500 index rose to 2.8 percent. Futures for October delivery crude oil (the main export of Canada) gained 2.5 percent to $ 87.52 a barrel in New York.
Market sentiment became even better as the report showed that personal spending in the U.S., Canada's largest trading partner, increased 0.8 percent in July compared with the average forecast 0.5 percent and falling 0.1 percent in June. The report this week by Statistics Canada is expected to show growth of Canada's gross domestic product by 0.2 percent in June after falling 0.3 percent in May.
USD/CAD traded at 0.9764 today as of 1:18 GMT after it fell yesterday from 0.9795 to 0.9767, while touching 0.9738 during the day — the lowest level since August 4. EUR/CAD fell from 1.4203 to 1.4171 on the previous trading session and traded near 1.4167 today. CAD/JPY traded at about 78.66 after rising from 78.21 to 87.61.
The South Korean won gained nowadays because the comments of the Federal Reserve, Ben S. Bernanke, on Friday increased risk appetite among participants within the Forex market, enhancing the charm of higher-yielding currencies.
Bernanke created comments on 26th August on the flexibility of U.S. to support the expansion of its economy within the long haul. The markets reacted absolutely and traders began their hunt for higher yields. South Korea's trade surplus widened to $9.94 billion in July from $2.03 billion in June.
USD/KRW fell from 1,080.10 to 1,073.50 today as of 13:46 GMT.
The South African rand met currently, reaching its highest level in additional each week against the U.S. dollar, as stocks and advanced metals, when speaking of the Federal Reserve, Ben S. Bernanke last week.
Bernanke said Friday that the Fed has recommended that to support the expansion of the U.S. economy, improved market confidence. the most stock index in South Africa rose one.7% prices the London Metal Exchange rose for the fourth consecutive day. The South African economy is administrated isn't pretty much as good, however, and lots of investors are convinced that the country's central bank might cut back interest rates.
USD/ZAR fell from 7.1300 to 7.0810 today as of 9:56 GMT and touched 7.0680 — the lowest level since August 17.
Today the Russian ruble continued to indicate a downward trend as crude oil continued to decline, dropping below $81 per barrel on the speculation demand for fuel can wane as the international growth is stalling. Currently the Russian currency erased its losses, but it’s unclear how long may it maintain gains.
Oil, the main export revenue earner for Russia, slumped 2.4 percent to $80.83 before trading at $80.81. Crude has fallen five.7 percent over this week and headed for a fourth weekly drop. The Russian currency weakened 1.3 percent yesterday and 0.2 percent over this week. Investors increased bid that the ruble can decline any.
USD/RUB fell from 29.1175 to 29.0787 as of 15:24 GMT today, while during the trading session the currency pair reached the daily high of 29.3575.
