Forex Rebates

Greece is currently dangerously close to filing for bankruptcy. Government officials are having a very hard time coming to terms with creditors, causing many problems for the euro in the forex market. The euro dropped against all major currencies today as investors fled from the currency mainly due to Greek uncertainties.

Greece has very little time to complete their new fiscal plan and present it to the European Union. The government has to negotiate with several parties as they are forced to cut their budget massively by introducing lower wages and higher retirement ages.

The euro dropped 70 basis points against the U.S. dollar and 50 basis points, half a percentage, against the Japanese yen with only hours left to finish up negotiations.

The Brazilian real started of 2012 with large declines. In the past three weeks, the real has lost several percent against the U.S. dollar. However, that trend was reversed today as the European summit held in Belgium sparked optimism in the forex market and other financial markets.

As optimism grew with European news being reported, so did demand for risky assets. Stock markets and commodity markets rallied, along with currencies of the BRIC nations, such as the Brazilian real. The real gained 70 basis points against the U.S. dollar today, as a solution to the European debt crisis would mean more exports and larger incomes for the country.

Several other currencies gained in the forex market as well, as the U.S. dollar dropped. The currencies reaping the largest benefits were those of emerging markets and other raw material based economies.

As European ministers are getting ready for a summit in a few days, the euro reached a 15-day record against the U.S. dollar. Expectations of the summit are currently high as there has been a large appetite for risk the past few days, fueled by positive news from both the U.S. and European region.

The main things being discussed at the summit is the situation in Greece, how to implement the new fiscal policies of the European Union and how to prevent countries with large debt to crash the system in the future.

The euro appreciated 30 basis points against the U.S. dollar and 20 basis points against the Japanese yen during today’s trading session in London.

The U.S. dollar is staying at the same level it closed during yesterday’s trading sessions, which means that the U.S. currency is maintaining a two-day depreciation against most currencies traded in the forex market.

Global stocks and commodity prices continued to rally as the U.S. presents a strong, solid economy, increasing demand for assets with higher yields. This is the main reason why the U.S. dollar has been depreciating lately, simply because the country is currently strong, thus raising hope that the global economy is headed for a recovery.

Another reason behind a decreased demand for the U.S. dollar is positive news from Europe, mainly that Greece are once again negotiating with its creditors to find a solution to the countries problems.

The British pound depreciated in the forex market today as the euro gained. Troubled European countries, such as Spain and Greece, had an easy time raising capital at a low cost. As a result, risk sentiment increased in the forex market, decreasing demand for safer currencies.

Even though 9 European countries had their credit ratings lowered, they still managed to raise funds without much effort. The scenario was unexpected and made the euro make a substantial gain in the forex market. Stock markets appreciated and curbed demand for safe assets such as government bonds, which experienced lower yields.

The British pound, also known as the Sterling, depreciated 50 basis points against the Euro. However, the currency did manage to gain 40 basis points against the U.S. dollar as the demand for the dollar decreased even more than the Sterling.

The euro hit the lowest point in 64 weeks against the U.S. dollar as no new plans to deal with the current debt crisis were announced before a European summit. Investors still believe that the crisis will remain and severely impact the future of the European region.

After three days of somewhat stable rates, slightly more favourable for the euro, the European currency depreciated against both the U.S. dollar and Japanese yen. Rumors claiming that both France and Italy will be downgraded by rating agencies hit the forex market, which caused the weakening of the euro. Although French government officials denied that such events would take place, investors chose to mainly sell euros.

The euro weakened 60 basis points against the U.S. dollar and a half percentage against the Japanese currency. Meanwhile, the rate between the U.S. currency and Japanese yen remained stable.

The U.S. dollar depreciated in the forex market today against several other currencies, mainly due to positive news regarding the U.S. economy. Official reports showed that both manufacturing and services provided increased in the country, more so than experts had predicted. Manufacturing orders grew both in November and December, showing increased demand in the domestic economy.

Although the European region showed opposite figures, a contracting manufacturing sector, the euro still touched its weekly peek against the U.S. dollar before moving back to a 0.3 appreciation. The reason behind a gain for the euro is an increased demand for riskier assets. Whenever the U.S. economy proves to be strong and stable, investors gain more trust in financial markets and demand assets with higher yields and higher risk levels.

The U.S. dollar also weakened 10 basis points against the Japanese yen and close to 0.5 percent against several other major currencies, such as the Australian dollar and New Zealand dollar.

The Euro hit its lowest point in over 11 years against the Japanese yen, mainly due to the fact that the European debt crisis still seems to be unstoppable despite the fact that we have officially entered a new year. The European currency also depreciated against the U.S. dollar, as Germany’s Merkel stated that she believes 2012 will be a tough year with much turmoil, sending negative vibes through the forex market.

Official reports showed that Europe keeps witnessing slower growth, mainly showing shrinking manufacturing numbers for a consecutive half year. Analysts are predicting that Europe will have a tough time reaching economic growth and that demand for the euro will keep decreasing as a result. Some economists are stating that Europe soon will find itself in a full-blown recession and that European officials have to act fast and aggressive to prevent such a scenario.

The concern of the European Debt Crisis is still causing volatility in the forex market. The Japanese yen felt these effects today as the currency appreciated due to the fact that it is considered to be a safe asset in an uncertain time.

The Japanese yen gained against several other currencies as analysts are predicting low numbers from several European countries, which also gave rise to the U.S. dollar. Another factor contributing to the appreciation of the Japanese currency is the recent decline of Asian currencies, which has markets worried and increases the demand for more stable assets.

The yen gained 0.3 percent against the euro and 0.2 percent against the U.S. dollar. Although the greenback appreciated just as the yen did, the Japanese currency experienced a higher demand, thus strengthening against the U.S. dollar as well. The yen is now almost up 7 full percent against the euro in 2011.

U.S. data proved to be healthier than analysts had predicted, which gave hope that the country’s demand will increase. As a result, a lot of Asian currencies appreciated in the forex market.

The number of privately owned new houses increased just short of 10 percent in the U.S., which turned out to be higher than almost any economist had officially expected. The country also witnessed lower unemployment and higher wages than expert estimates. The news increased demand for riskier assets, which is why a lot of Asian currencies gained against mainly the U.S. dollar.

Both the South Korean won and Singapore dollar gained around 1 percent, and the Malaysian ringgit and Philippine peso appreciated half a percentage against the U.S. dollar.