Forex News

After gaining since the beginning of this trading session on speculations that a robust U.S. economy would provide grounds for borrowing costs to rise in the following months, the dollar slid as government officials stated otherwise.

The dollar ended another week gaining versus the euro and the pound as the economic conditions in North America remain far more attractive than in the other side of the Atlantic, increasing the number of traders who are switching their investments from Europe towards the United States.

The New Zealand dollar started this Friday losing versus currencies from its main trading partners as central bankers from Australia and the U.S. are adopting a hawkish tone leaving the New Zealand dollar less attractive as rate hikes are not forecast in the short term for the kiwi nation.

After touching the highest rate in February on renewed risk appetite, the Canadian dollar retreated versus its U.S. counterpart after the Federal Reserve raised its discount rate for the first time in three years, allowing the greenback to be more attractive than the loonie in forex markets.

The dollar touched the highest level in 2010 versus several important currencies this Thursday as the Federal Reserve raised its bank discount rate for loans, spurring demand for assets in the country as the economy seems to be picking up, allowing the nation’s central bank to lift stimulus.

After several weeks dropping on high risk aversion, the Brazilian real benefited from positive news this week coming from North America and Europe, attracting investors back to emerging markets, allowing more attractive riskier assets in Brazil to force the nation’s currency up in foreign-exchange markets.

The Canadian dollar profited today from different factors that allowed optimism to penetrate equities and commodities markets, extremely influential on the loonie rates, that touched the highest level in one-week versus its U.S. counterpart.

The euro slid today versus virtually all of 16 main traded currencies on foreign-exchange markets as some Eurozone member countries raising budget deficit is still affecting attractiveness for assets in the region, in a day were commodity linked currencies outperformed most currencies as risk appetite returned to markets.

The Japanese currency ended a rally fueled by risk aversion as a Federal Reserve statement published yesterday brought optimism to financial markets globally, decreasing appeal for refuge investments available in Japan, specially versus high-yielding currencies.

The U.S. dollar advanced versus several key currencies after a Federal Reserve statement announcing that a number of stimulus to help the economic recovery will be lifted, as according to central bankers, the economy is already showing enough evidences of improvements to allow these measures.