Daily Hot Sport

UK pound is declining today, especially against the euro, as the latest news indicates that the eurozone is likely to avoid a recession. The pullback in the pound is not limited to its performance against the euro, though. The British currency is also down against the US dollar as Forex traders re-evaluate recent gains made by the pound.

UK pound is lower against the euro mainly due to the latest economic news out of Germany. Germany’s GDP single-handedly offset declines elsewhere in the eurozone and kept the 17-nation currency region out of recession. As a result, the UK pound, which has been gaining as a European safe haven, is no longer in demand. The euro is gaining, and the pound is lower.

The news has also affected the pound’s performance against other currencies. Sterling is lower against the US dollar, as well as losing ground against the Japanese yen. UK pound has been performing well in 2012, seeing an appreciation of 3.6 per cent. With this reality, it is little surprise that the pound is taking a bit of a breather. And, with the euro showing some strength, it isn’t surprising that the pound is falling out of favor.


At 12:36 GMT EUR/GBP is up to 0.8002 from the open at 0.7968. GBP/USD is lower at 1.6047, down from the open at 1.6092. GBP/JPY is down to 128.4100 from the open at 128.4850.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

US dollar is gaining ground after pulling back against the euro earlier. Greenback is now gaining the upper hand against many of its major counterparts. Risk appetite is fading, even with the latest German GDP news, and the US dollar is beginning to eke out some gains against other major currencies.Earlier, the US dollar pulled back against the euro as better data out of Germany helped the 17-nation currency. However, the situation isn’t maintaining, as the euro is slipping. US stock futures, which were almost 100 points higher at one point, have dropped, and gold prices are no longer gaining. Risk appetite is fading a bit as Forex traders and others reconsider the situation.


Greece is mulling a technocrat government, and Spain still hasn’t resolved a lot of its issues. As a result, the euro is no longer seeing some of its earlier gains. Uncertainty means that the US dollar is once again seeing demand as a safe haven, and other major currencies are losing ground. US dollar still boasts a somewhat improving economy as well, and that is especially helpful against an issues-laden eurozone.

At 13:14 GMT EUR/USD is lower at 1.2779, down from the open at 1.2823 and off the earlier high of 1.2871. GBP/USD is down to 1.6027 from the open at 1.6092. USD/JPY is up at 80.0200, higher than the open at 79.8530.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below

The New Zealand headed to the lowest level this year against the euro as Germany’s economic growth boosted the shared 17-nation currency. The kiwi erased this year’s gains against the US dollar.
The New Zealand currency was weaker against the euro after a report showed that Germany avoided recession. The good news should have helped the kiwi (as the currency is usually nicknamed) against the greenback, but that did not happen. In fact, NZD lost all of its gains against USD for 2012. The currency was rallying in the first two months of this year, retreated a little, but held most of its gains through March and April. In May, the NZ dollar has started a sharp
decline that brought it to the lowest level in 2012.

NZD/USD fell from 0.7767 to 0.7721 as of 13:21 GMT today, while its intraday low of 0.771 was the lowest since December 30. EUR/NZD was up from 1.6490 to 1.6554 and reached the daily high of 1.6571, the highest since January 3.

If you have any questions, comments or opinions regarding the New Zealand Dollar, feel free to post them using the commentary form below.

The Australian dollar gained today on speculation that its previous losses were excessive. The currency trimmed gains versus the Japanese yen and fell against the US dollar as fears of the European crisis returned to Forex traders.

FX traders felt risk appetite for a short time after a report showing growth of the German economy. The positive mood was short-lived, though, and currently speculators feel aversion to risk. Talks that Greece may leave the eurozone abound and hurt riskier currencies, like the Australian dollar.

Today’s minutes of the Reserve Bank of Australia’s monetary policy meeting on May 1 indeed mentioned the problems in Europe:


With financial markets remaining unsettled, the risks emanating from Europe continued to cloud the global outlook.

What was even worse for the Aussie, the minutes stated that domestic fundamentals in Australia are not very good:

Growth outside of the mining sector was expected to be below trend in the near term, affected by the high exchange rate, softer government spending and subdued conditions in the housing market and building industry more generally.

All in all, it is not surprising that the Aussie fell against the greenback, but managed to outperform the euro. The ability to keep part of gains against the yen was a surprise, though.

AUD/USD was down from 0.9959 to 0.9932 as of 19:49 GMT today, while intraday it jumped as high as 1.0015 and fell to 0.9921 — the lowest rate since December 20. EUR/AUD slipped from 1.2870 to 1.2814. AUD/JPY climbed from 79.51 to 80.14 before trading at 79.67.

If you have any questions, comments or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

The Canadian dollar advanced today against the euro as the political turmoil in Greece made traders flee from the shared European currency. The loonie also rose a little versus the Japanese yen, but fell against the US dollar.The current situation in Greece is a mixed blessing for the Canadian currency. Forex traders seek stable and safe currencies as they run from the euro and associated risks. The Canadian dollar is a good choice as it is supported by good fundamentals in Canada and the United States, the biggest trading partner of Canada.

On the negative side, the loonie (as Canada’s currency is nicknamed because of the image of an aquatic bird on a C$1 coin) is tied to economic growth and the problems of Europe have a negative impact on growth prospects. The European debt crisis has shaken the entire world and Canada is not immune. Prices for commodities are falling and Canada’s currency depends on performance of raw materials. In the end, the future of the loonie is uncertain as the outcome of Europe’s story and its influence on global markets is unclear.


USD/CAD was up from 1.0036 to 1.0066 as of 22:41 GMT today, while the intraday high of 1.0072 was the highest since January 25. EUR/CAD fell from 1.2867 to 1.2816, touching 1.2781 intraday — the lowest level since January 12, 2011. CAD/JPY was up from 79.51 to 80.09 before retreating to 79.67.

If you have any questions, comments or opinions regarding the Canadian Dollar, feel free to post them using the commentary form below.

The Chinese yuan weakened a little today as the crisis in Europe reduced attractiveness of emerging markets’ assets and as China’s central bank lowered reference rate.
New elections in Greece may be held as soon as June 10, adding to uncertainty about the situation in the European Union. China’s slowing growth also damp demand for the nation’s currency. The People’s Bank of China set the fixing 0.15 percent lower at 6.3205. The yuan is allowed to trade 1 percent on either side of the daily reference rate.

USD/CNY traded at about 6.3229 as of 10:32 GMT today after opening at 6.3225 and rising as high as 6.3286.


If you have any questions, comments or opinions regarding the Chinese Yuan, feel free to post them using the commentary form below.

Earlier, the euro headed lower as concerns about Greece overcame the markets and worried Forex traders and investors. Good news out of the United States, though, is changing the picture a little bit and providing a measure of confidence that is helping the euro to tenuous gains this morning.Earlier, the euro dropped on the disappointing news out of Greece. Greek President Karolos Papoulias has said that new Parliamentary elections will be called, since a coalition government has not been formed. However, the new elections might not take place until the middle of June. Many think that the new elections will be a referendum on whether or not Greece should remain in the eurozone. On top of that, the delay in the elections means that Greece may not receive the international aid from the bailout that it needs to keep going. Reports of Greeks withdrawing money from banks in large amounts is are further spurring fears about sovereign debt contagion and panic.



That news brought the euro down earlier, but right now the 17-nation currency is getting some help from better economic news in the United States. Housing starts rose 2.6% in April, and that is providing some positive diversion away from Greece.

At 12:44 GMT EUR/USD is up to 1.2743 from the open at 1.2730. EUR/GBP is up to 0.7997 from the open at 0.7958. EUR/JPY is up to 102.5730 from the open at 102.0650.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

US dollar is mixed today as gains against the pound and the yen are offset to some degree by the way the euro is managing to eke out gains in spite of the turmoil over Greece. However, even with this small setback against the euro, the US dollar is still likely to remain strong overall, since safe haven currencies are likely to be in demand for some time.For now, the US dollar is turning in a mixed performance today. Against the UK pound, greenback is higher as the Bank of England lowers its growth forecast for the year to +0.8%, revised down from +1.2%. The news has some speculating that more asset buying could ensue in an effort to stimulate the British economy, and that is weakening the pound. Against the yen, the greenback is a little higher thanks to the news that housing starts improved 2.6% in April in the United States, and on the upwardly revised numbers from March.



Euro has struggled higher on this same improved data out of the United States. A little bit of risk appetite is being seen as investors are diverted from the Greek drama that continues. Worries about Greeks withdrawing money from banks, the possibility that bailout funds will not be received, and that Greece may leave the eurozone are taking a surprising second seat to better news out of the United States. But this is unlikely to last long, since Forex traders are interested in the safety offered by the US dollar.

At 13:23 GMT EUR/USD is up to 1.2743 from the open at 1.2730. GBP/USD is down to 1.5951 from the open at 1.5993. USD/JPY is up to 80.4330 from the open at 80.1850.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

The Japanese yen fell against other major currencies today on speculation that the Bank of Japan will continue its efforts to weaken the currency. Even fears of the European debt crisis were not been able to help Japan’s currency.

Specialist estimated that Japan’s gross domestic product grew as much as 3.5 percent of the first quarter of 2012 from Q1 2011, when it fell 0.7 percent. Analysts predict that growth would slow as the export-oriented economy of Japan is under pressure from the strong currency and slowing demand for nation’s exports, caused by the global economic slowdown. It is likely that under such conditions the BoJ would not have any option but stimulate the economy more.


USD/JPY climbed from 80.18 to 80.36, following the rise to 80.55 — the highest price since May 3, and EUR/JPY advanced from 102.06 to 102.45 as of 14:38 GMT today after it touched 101.90 — the lowest rate since February 14.

If you have any questions, comments or opinions regarding the Japanese Yen, feel free to post them using the commentary form below.

The Great Britain pound slumped today after the Bank of England trimmed its growth forecast as the crisis in Europe escalates. Positive employment data did not manage to help the weakening currency.
BoE Governor Mervyn King said at today’s press conference that the central bank cut its growth forecast. The Governor explained that the European debt crisis remains a main threat to the UK economy as the eurozone is the main trading partner of the United Kingdom. King stated that it is impossible to estimate results of the worst-possible outcome of the crisis and added:

But even the threat of those more extreme outcomes is enough to affect the outlook for the UK, through its effect on bank funding costs, asset prices, including the exchange rate, and the confidence of households and businesses.



BoE chief was not completely, pessimistic, though and voiced belief that the Great Britain will recover from the current problems.

Employment data showed that King’s optimism may be justified. The unemployment rate unexpectedly fell by 10 basis points to 8.2 percent in the first quarter of 2012 and the number of people claiming Jobseeker’s Allowance provided a pleasant surprise, falling by 13,700 in April from March. Alas, the positive report did not help the pound.

GBP/USD was down from 1.5992 to 1.5915 as of 23:31 GMT, touching 1.5888 today — the low not seen since April 17. GBP/JPY slid from 128.24 to 127.90, reaching 127.65 intraday — the lowest level since April 17. EUR/GBP rose from 0.7956 to 0.7991.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.