| Euro Mixed Early Tuesday In New York; Hits Month-low Versus Franc
(RTTNews) - The European currency showed varied trading early New York Tuesday. The common currency rallied against the greenback and showed good strength against the Canadian dollar too. It was initially higher against the Japanese currency but later gave back. To the sterling and franc, however, euro was lower during this session. Losses towards CHF made EURCHF hit a near-month low lately. Recent deals in the pair came amid Euro-zone retail sales and German factory orders data for December. German factory orders lowered 0.2% on monthly basis in December seasonally adjusted numbers showed. Consensus was a growth of 0.5%. On year, factory orders gained 1.7%, smaller than 6.1% recorded in November much lower than the market expectation of 7.4%. Euro zone retail sales volume increased 2.1% annually in the month of December when the economists were expecting for a growth of 2.3%.
G-7 Recommends Vigilance on Hedge Funds
ESSEN, Germany (AP) — The world's major developed economies show solid growth, but foreign exchange fluctuations, the rising power of hedge funds and dwindling energy supplies are a concern, G-7 finance officials said Saturday. The finance ministers and central bankers also lauded China's commitment to "rebalance growth," but called for a move in its effective foreign exchange rate. China's tight control of its currency and trade surpluses have also raised concerns in the West. At its last meeting, the G-7 urged China to let the yuan respond more flexibly to market movements. This more explicit reference to movement in the exchange rate was a change. "Over the last two days, we discussed ways to keep the global economy growing in a balanced way, including stimulating domestic demand in Japan and Europe and pressing for greater exchange-rate flexibility in China," said U.S.
Argentina marks a self-reliance milestone
It is five years since Argentina devalued its currency and defaulted on its debt, bringing to a shattering end a decade during which the country had often been viewed as a poster child of International Monetary Fund-backed market reform. By early 2002, with the economy sinking and the country wracked by political crisis, it was widely assumed that it would take many years for an isolated and impoverished Argentina to recover. But already, Argentina is prospering again. Néstor Kirchner, its popular centre-left leader, has presided over four successive years of expansion above 8 per cent and is expected to win a second term at elections due this year. More remarkably, the president has achieved his objectives by turning his back on international creditors and the multilateral lending agencies that have policed the international financial markets for the past 60 years.
Alaron Currency Comment
CHICAGO - Feb 9/07 - SNS -- Following is the grain and oilseed futures comment from Alaron Trading Corp. Euro Currency (ECH7): The EC opened lower at our initial Support level of 1.3010 after the ECB decision to leave rates 'unchanged' at 3.50%. Traders awaited comments from ECB President Trichet to see if they would reflect a 'hawkish' or 'dovish' tone. 'Strong Vigilence' was enough to push prices to a morning Hi of 1.3063 as further rate increases have been preceded by this 'hawkish' phrase. Prices drifted to 1.3050 as we enter the afternoon session and rose towards the close to end the session at 1.3061, up 31 tics. The s/t trend remains 'positive' w/ 'firm' momentum indicators. Perception of higher rates could attract more buyers after the statement from the G-7 conference.
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