Forex News

The dollar started this Tuesday losing versus European and higher-yielding currencies as positive events in the old continent pushed further up risk aversion in trading markets globally, making the pound and the euro to rank among the best performers versus the greenback today.

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 euro emerged versus several important currencies as Greece will propose a strategy to solve its budget deficit crisis, declining pessimism among investors to purchase assets in the Eurozone.

The Brazilian real is starting this month extending last week’s advance and reverting a negative trend from the beginning of the year, as the appeal for assets in the country are attracting foreign capital inflows and helping the real to beat a number of currencies in foreign-exchange markets.

The Canadian dollar started the month of March on a bullish pattern after policy makers in the country affirmed that inflation is slightly above what the Bank of Canada expected, fueling speculations that interest rates may be hiked in the country anytime soon.

The pound didn’t manage to pare last week’s losses versus most of the 16 main traded currencies this Monday, as not only the financial, but the political situation in the U.K. is rather negative, impacting the already not very attractive assets in the country.

The Canadian dollar started this week extending a rally started last Friday as quarterly gross domestic product figures in the country surprised forecasts positively, attracting more traders to inject capital in the country as the North American economy rebounds.

The Canadian dollar pared some of the losses occurred this week as risk appetite rose significantly before the end of this Friday’s session, allowing the loonie and other currencies tied to growth to outperform a weakened U.S. dollar.

The Singapore dollar had one of the best weekly performances since the beginning of the year as optimism towards the domestic and regional economies improved, allowing the Singaporean currency to gain towards the weekend.

The British pound had another week of losses versus currencies from its main trading partners as the emerging budget deficit problems in the country are affecting market confidence among traders, shunning capital from the country towards other more favorable investment opportunities.