May 8, 2008
Following the European central Bank’s decision to keep rates steady at 4.00%, the euro showed slight weakness against its major counterparts.
Currently, the euro is worth 1.5358 against the US dollar, 0.7850 against the pound, 160.19 versus the yen and 1.6214 against the franc.
EUR/USD touched a low at 1.5283.
Forex rates at posting time (20:00 - GMT+8 ) are:
| EURUSD |
1.5355 |
| USDJPY |
104.2600 |
| GBPUSD |
1.9557 |
| USDCAD |
1.0118 |
| USDCHF |
1.0553 |
| EURCHF |
1.6205 |
| EURGBP |
0.7849 |
| EURJPY |
160.0733 |
| USDTWD |
30.9400 |
| AUDUSD |
0.9420 |
| NZDUSD |
0.7723 |
| USDSGD |
1.3773 |
| EURTWD |
47.5867 |
2 Comments | 
Central Bank, Currencies, ECB, Euro, Interest Rates | 
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Posted by fvarga
May 8, 2008
The BoE left their benchmark interest rate unchanged at 5.00%, in order to gauge inflation risks.
The central bank has been concerned with inflation breaching its 3% threshold, which requires Governor King to write a letter of explanation to Chancellor Alistair Darling.
Inflation stands at 2.5% far above the desired 2% target, as record oil and food prices continue to squeeze consumers.
The decision drove the GBP higher against the USD.
No Comments » | Central Bank, Currencies, England, Interest Rates | Permalink
Posted by fvarga
May 8, 2008
Mounting inflationary concerns raised speculation that the Fed may be forced to tighten its monetary policy faster than expected, and pushed the US dollar to rally against all of the major currencies expect for the Japanese Yen.
As a result, all of the commodity currencies slide against the greenback amid surging oil prices, with the New Zealand dollar taking the biggest plunge as investors limited their holdings of high yielding currencies.
The US dollar picked up remarkable gains against the European currencies as the British Pound and Euro dipped to 1.9512 and 1.5366, respectively, with the Swiss franc following behind as the pair traded in the 1.0540 range.
A speech by Kansas City Fed President Thomas Hoenig sparked bullish sentiment for the greenback as he stated ‘serious’ upside risk for inflation - signaling that the series of rate cuts by the Fed has reached its peak.
The speech highlighted the growing concerns for inflation, and sparked bets that the Fed may look to increase rates this year in order to contain the current rise in inflation.
Amid the bullish sentiment taken on by currency traders, fresh economic data continued to reflect a troublesome housing market as Pending Home Sales dipped to a new record low for the second consecutive month as it fell 1.0 percent in March.
However, the credit market is beginning to show signs of recovery as the Consumer Credit index rose well beyond expectations to $15.3B from $5.2B in February.
The stock markets tumbled lower as oil surged to fresh record high of $123.53.
No Comments » | CHF, Currencies, GBP, JPY, Oil, USD | Permalink
Posted by fvarga
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