Currency News – Discussing the Latest Forex Trading News
This week we saw a significant rise in the value of the Euro as it has begun the week much higher than it has for several months. This has now sparked huge optimism that the currency could make a major recovery over the next few months although sceptics have been dismissing this slight move as a temporary issue. Although the value of the Euro has risen this week last week it fell considerably against many of the worlds leading currencies which are mostly due to the Italian prime minister warning that a disagreement between many European Union members could have the eventuality of causing the Euro to go into a state of meltdown unless these parties can agree. This is greatly due to the psychological affect of the way the currency news for the Euro has been changing and moving in recent months with all parties now very sceptical that the currency will make a recovery in upcoming years.
One of the largest obstacles regarding this issue is Germany who is refusing virtually all courses of action being taken to find a resolution to the problem as they are holding out for more austerity within the crisis zone. This increase in the value of the Euro has sparked wide spread hope that the European Central Bank would initiate a bond buying programme which could ease the pressure within the Euro Zone but this is yet to emerge but there is still hope this can be achieved. Another bit of interesting news from the Forex market is the sight of the Yen rising to full strength even though the risk appetite on the market not deterring traders from using the Yen which in turn has caused it rise much higher against many of the worlds trading countries. Many European traders are sitting tight waiting for the European Central Bank to commence its bond buying program which would see many of the Euros problems alleviated. The major change that has occurred that could add a much higher level of optimism is the German Chancellor stating that they will now support such a move which could lead to the future of the Euro zone looking much brighter. It is thought that many forex traders still have reservations about the market and the plans of the leading bodies in the Euro zone as they believe the optimism could be very short lived and they preferred to stick to their current assets.
The next piece of news we found extremely interesting is that the Ruble has risen considerably due to the price of Urals oil rising and the Russian borrowing costs dropping considerably across the board. This has caused traders to keep their faith as these riskier currencies such as the Ruble now look much more attractive for future transaction within the market. As over fifty percent of Russia’s overall exporting revenue comes from trading gas and oil exports this has been great news for the currency and has had the affect of increasing the yield on Russian bonds by a great deal. A real shock across the foreign currency world is that the British Pound saw a slight drop as due to the latest housing data revealing that less and less people are now selling and buying homes across the UK. One of the largest problems of this is that home owners are asking far to high a price for their properties and this requires them to lower these prices if they are to help kick start the economy. More images can be found on our Pinterest page here.
The fact that buying a home especially for first time buyers can be a very difficult challenge as banks are now making it much harder to obtain a mortgage without significant levels of deposits being required. The Bank of England had been hoping that the Olympics would be helping to ease the pressure but as of yet this event has not given the boost to the economy that was foreseen.