Forex Trading News December 2009

The Loonie, an informal term for the Canadian Dollar, fell from the strongest rate this year against the Common European Currency due to equities failing to extend the advance reached at the start of this week’s trading session,

The Loonie, an informal term for the Canadian Dollar, gained today against the 6 most important currencies due to rising crude oil rates, which is Canada’s key export product to the United States. The prospects for the Canadian Dollar are still one of the most favorable ones in the Forex market.

The Hungarian National Bank reduced its base rate by 25 basis points, which was less than the expected 50 basis points. Hungary’s central bank, Magyar Nemzeti Bank, cut its key interest rate from 6.50% to 6.25% in order to stabilize the economy as the circumstances are rather unstable and to control inflation

The Swiss Institute for Business Cycle Research (KOF) hiked the outlook for the Swiss economy for this year and next year. Switzerland’s economy will contract by 2.9% in 2009, according to the latest forecast, while the Zurich-based think-tank forecasted a 3.4% shrink in September.

The Pound Sterling dropped today against a number of currencies on the back of pessimistic retail sales figures, indicating that the UK economy still struggles, shifting attractiveness out of the UK.
The Greenback rose this Thursday against the Single Currency and particularly versus more-profitable currencies due to rising concerns regarding Greece’s debt situation,

The estimation for the 2010 economic expansion has been lifted by the Swiss government due to the accelerating economic recovery, while it stated that the improvement would continue its slow pace until 2011.
The GDP is forecasted to climb by 0.7% in 2010 en by 2.0% in 2011, according to the State Secretariat for Economic Affairs (SECO).

After optimistic speculations about the US economy improving faster than expected, the Greenback posted at the end of this week’s trading session the highest rate against the Euro, increasing the attractiveness of Dollar priced investments.

The Pound Sterling dropped against the Single Currency and the Greenback due to the fact that the perspectives for the economies of the world’s wealthiest nations are still more optimistic than the outlook for the UK economy. This resulted in investors choosing higher-yielding currencies of faster improving economies instead of Pound priced investments.

Jean-Claude Trichet, President of the European Central Bank (ECB), stated today that the ECB’s extraordinary measures have been effective for the economy in difficult periods. Such measures will be withdrawn step by step and well-timed, restated Trichet.

This Sunday, the capital and largest city of Greece will commemorate the first anniversary of the death of a student that was followed by violent revolts in main Greece cities.

The Italian seasonally corrected unemployment rate climbed to 8% in October, while September showed a 7.8% level, Istituto Nazionale di Statistica (Istat) reported today. It was the first monthly report regarding joblessness released by Istat. October’s unemployment rate is the highest since late 2004. The jobless rate climbed 2% in comparison to September, while it rose 13.4% in the yearly comparison.

The Japanese Yen entered its second downturn due to the recent rally of the Yen versus the Greenback, while the Japanese real gross domestic product has climbed during two successive quarters. Export-focused businesses would be affected firmly by the strong rate of the Yen. Before the rally, Japan’s government stated that the Japanese economy faced weak deflation.