Archive for July 2010

Yen Rises on US Economic Worries

July 29, 2010

Growing concern that the global economic recovery is slowing down has sent a wave of jitters into the forex market.  After a healthy bout of rallying over the past few sessions, the US dollar sank on Thursday as investors headed for the refuge of the Japanese yen.

Stock markets also weakened in Australia after a weak lead from Wall Street.  However, most analysts put this down to corrective movements rather than a great deal of anything else.  That said, until elections are over in Oz, investors are likely to remain a bit on the jumpy side.

“Silly season” is well underway in the UK and in Europe, as most people go on their annual summer holiday.  With lower numbers in the office, companies are hoping that there is better economic data to come, which will enhance the ‘back to work’ feel come September.

Growth for First Quarter in Euro Zone

July 20, 2010

According to official data from Luxembourg, Euro zone growth improved in the first quarter, driven mainly by exports.  With the weak euro consistently being driven down on the currency market, Euro goods became nice and cheap for international investors. 

The fact that euro zone GDP increased for the first quarter was pretty much in line with expectations from experts and economists.  Most expect that the next quarter will bring more strength and recovery.  But what everyone is still a bit shaky on is the final half of the year – will growth slow down again?  Will the 16-nation area slip back into negative territory?

US Market Closed for Independence Day

July 5, 2010

A quiet start to the week, what with Independence Day celebrations in the US – meaning Wall Street is closed.

So far, the FTSE 100 index has dipped, while the pound has already hit its day low after weak PMI services data was released.  Since then, the US dollar has jumped against the yen before retreating again after a bigger-than-expected drop in US non-farm payrolls was released for June.  Meanwhile, US unemployment dropped to 9.5%, a larger fall than had been predicted.

In the UK, the first CTF provider has announced that they are not taking any new customers for new child trust funds.  Last month the new coalition government announced that it was axing all child trust funds from January 2011.