Pound Falls Further on BOE Meeting Outcome

he pound declined for another day after policy makers agreed unanimously to extend stimulus in order to rescue the faltering British economy from the longest recession in the last decades, decreasing attractiveness for an already weakened currency in

foreign-exchange markets.

The U.S. dollar traded near a two-month high versus the British pound after this month’s central bank meeting talks published today indicated that all policy makers opted for extending its bond purchase program to revive the nation’s economy, despite admitting it has not been as effective as previously expected. Another decision from the Bank of England did not surprised traders as benchmark interest rates in the country remained at an all time record low of 0.5 percent, since the economy does not provide conditions even for speculative movements suggesting rate hikes in a foreseeable future.

The outlook for the pound depreciated as quantitative easing measures taken by the Bank of England has been ineffective, and the country’s resilience has been disappointing not only for traders and analysts, but for the population as well, setting pound-priced assets as one of the least appealing ones among the 6 top traded currencies.

GBP/USD traded at 1.5956 as of 12:58 GMT from a yesterday’s price of 1.6055. EUR/GBP climbed up to 0.8948 from 0.8895.

U.S. Dollar Declines on Frustrating Housing Report

A long winning streak for the greenback versus currencies like the euro and the Aussie dollar was stopped after a housing report was published today bringing rather negative figures much below estimates, providing support for other currencies to pare losses versus the U.S. dollar.

The dollar declined sharply versus the yen and the Swiss franc after several days rallying versus most of the 6 main traded currencies after a new home sales report indicated much worse numbers than the previous report and forecasts, emerging doubts regarding the pace of recovery for the world’s wealthiest economy, as traders use the circumstances to take profit and repatriate capital invested in the dollar after a rally that started in the beginning of the month when positive reports fueled speculations that interest rates could be hiked sooner than expected by the Federal Reserve.

Not all sectors of the U.S. economy are providing optimistic data, according to analysts. Today’s movement is a combination of consequences caused by the negative housing report, but also a natural correction after so many days of gains for the greenback, as some speculative positions are sold.

EUR/USD traded at 1.4346 as of 17:32 GMT from a previous reading of 1.4251 yesterday. USD/CHF traded at 1.0368 from 1.0489 yesterday.

Russia’s Ruble Climbs Further as Oil Touches $75

The Russian currency benefited from another day of growing demand for the crude oil, providing support for the ruble to advance versus the euro, dollar and the pound, as the demand for energy rises in the coldest season of the year in the Northern Hemisphere.

After the crude oil touched $75 a barrel in New York today, the ruble continued its previous days advances versus most of the main currencies as the economic outlook for the world’s biggest energy exporter in 2010 is very optimistic, with an annual growth up to 5 percent expected for the coming year.

USD/RUB traded at 30.19 as of 18:10 GMT from an opening rate of 30.57 today.

If you want to comment on the Russian Ruble’s recent action or have any questions regarding this currency, please, feel free to reply below.

Romanian Leu Hits Record High on New Prime Minister

The Romanian leu touched the highest level in three months versus the euro after the country’s parliament chose its new prime minister, lifting speculations that a political crisis could influence the country’s economy negatively.

After the Romanian Parliament approved a new government led by prime minister Emil Boc, speculations that loan approvals necessary for stabilizing the Eastern European economy would not be approved disappeared, helping the leu to advance versus the dollar and the euro as concerns that the country could suffer a credit downgrade cooled down.

EUR/RON closed today at 4.1982 from an opening rate of 4.2173.

If you want to comment on the Romanian leu’s recent action or have any questions regarding this currency, please, feel free to reply below.

Dollar Rebounds on Jobless Claims

After having its winning streak halted yesterday and earlier today on a negative housing report and as the Fed insisted that economic stimulus will be maintained, the dollar rebounded slightly as an employment report brought optimism back to the currency’s outlook.

The U.S. dollar started today’s session losing specially versus the euro after touching the lowest level in December, and also dropped versus the pound and the Canadian dollar as stocks surged globally, but as a jobless claims reports indicated a lower level of new applications for the past week, the dollar pared some of its losses and is currently trading near the highest levels for this month versus the yen and the pound, as retail sales also increased in the U.S., bringing optimism towards the economic recovery in North America for the next year.

Even if the Federal Reserve frustrated traders avoiding to comment interest rate hikes for anytime soon, the economic recovery in the U.S. and pessimism in other economic regions is still allowing the greenback to maintain the levels it reached this month, and may extend its gains for early 2010.

Forex

Waht is Forex ?