The Chilean peso oddly profited from a natural tragedy that impacted the country in the first night of this month, as speculations suggest that the reconstruction process in the country, will allow the country’s economy to accelerate.
The South American country is likely to repatriate reserves invested overseas to promote a quicker restructuring in the country after Chile was shook by an earthquake this weekend, allowing the peso to rank among the best performing currencies this Tuesday in forex markets.
USD/CLP closed at 519.05 this Tuesday from an opening rate of 523.25.
Chilean Peso Climbs After Earthquake
Dollar Down after European News
The dollar started this Tuesday losing versus European and
The pound managed to gain versus the dollar and traded above $1.50 ending the longest losing streak versus the U.S. currency in more than a year, after consumer confidence rose in the country to the highest level since the global slump affected the U.K. in 2008. The dollar has been losing ground this week versus the euro as concerns regarding the Greek crisis decreased, and today, after the country announced further cuts to tighten its budget gap, the Eurozone currency rose.
Much of the dollar’s advance since last December had been consequences caused by lack of optimism in European markets, but, this week, after interest rate speculations decreased in the U.S. and Europe had a breather on bad news, the market scenario is not so favorable for the greenback anymore.
GBP/USD traded at 1.5051 as of 14:01 GMT from 1.4964. EUR/USD traded at 1.3652 from 1.3571.
Consumer Confidence Support Sterling’s Advance
The U.K. currency entered its second day of gains versus most of the main traded currencies after evidences of economic improvements started to appear in the country, increasing appetite for assets in the country, which have been lately affected by grim forecasts towards the kingdom’s economy.
Two positive economic releases helped the pound to beat multiple currencies this week so far after an index of services industries rose to the highest levels since the global slump struck the U.K.’s economy, and a consumer confidence report came with numbers much above forecasts, signaling that despite the country’s budget deficit is rising, the economic dynamism in the country may allow the government to cope more easily what the current financial challenges in the country.
Swedish Krona Down on Eurozone Optimism
The Swedish krona fell for another day this Wednesday as optimism in the Eurozone and negative releases in the Nordic country declined attractiveness regionally for assets in Sweden.
The krona is very likely to end this week posting a drop versus important currencies in Europe after a report in the country showed that Sweden is again having to deal with a recession, declining the odds that interest rates will be hiked in the country anytime soon. The krona had been an option in Europe as the Greek crisis affected market sentiment in the Eurozone, but this week, as Greece proposed new measures to tighten its fiscal deficit, the euro recovered versus the krona.
EUR/SEK traded at 9.7878 as of 14:39 GMT from 9.7700 when markets opened today.
Pound Declines Before Policy Makers Meeting
The pound lost versus several
The British currency posted a declining session versus most of the 16 main traded currencies two days before a Bank of England policy makers meeting, where, according to analysts, the current asset purchasing program will not be suspended, declining even further attractiveness for the pound, as the recession in the U.K. remains rather significant and measures are necessary to attempt starting a faster economic acceleration in the country. Even if the real estate market is providing positive data in the U.K. since November, the sentiment regarding the economic future in the nation is rather misty, stopping the pound to advance in
U.K.’s central bank strategy is following a different, and dovish, path than most of the wealthy nation’s policy makers. While interest rate hikes talks are a global trend, in the U.K., quantitative easing extensions are still possible, and this has a intense impact in the pound’s rates.
EUR/GBP traded at 0.8979 as of 19:10 GMT from a previous reading of 0.8945 yesterday. GBP/USD traded at 1.5983 from 1.6090.
Romanian Leu Hits 6-Month High as Political Crisis Eases
The Romanian leu rallied today versus the euro and the U.S. dollar as interest rates were unexpectedly cut in the country after a political crisis that delayed an IMF bailout finally ended, adding confidence that stability in the parliament will lead the nation towards a faster recovery.
After interest rates were cut today to 7.5 percent at the lowest level in a year, the leu rose versus most of the main currencies, as a political crisis ended regarding disputes that affected the process of obtaining and using a $30 billion bailout provided by the International Monetary Fund to the Eastern European nation. The optimism regarding better economic days for Romania with political stabilization helped the leu to rally today.
EUR/RON closed at 4.1838 from an opening rate of 4.2137. USD/RON ended the day at 2.9033 from 2.9139.
Mexican Peso Extends Rally on U.S.
The Mexican peso is benefiting from the U.S. economic outlook for 2010, as Mexico has the U.S. as the main destination for its exports, both raw and manufactured, and an accelerated growth of its neighbor is helping Mexico’s currency to gain in
The peso continued to profit today from a better confidence towards its main trading partner, the U.S., as well as for increased crude oil rates, since the Latin American nation is one of the main oil suppliers for the U.S. together with Canada, helping the peso and the loonie to trade high in the beginning of 2010.
USD/MXN traded at 12.8190 as of 20:13 GMT from an opening rate of 12.8750.
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