Mexican Peso Advances as Rates Won’t Be Cut

The Mexican peso had a positive performance today versus the greenback as interest rates are unlikely to have further cuts, attracting investors to inject capital in the North American country.

The peso benefited today from a rally in crude oil rates,that crossed the $80 line per barrel in New York, raising appeal for the Mexican currency since the country is one of the main fossil energy suppliers for the United States.

USD/MXN traded at 12.98 as of 17.37 GMT from an opening rate of 13.03 today...link

Gold, Oil Force Canadian Dollar Up

The Canadian dollar continued to trade high maintaining yesterday’s gains versus the U.S. dollar as gold reached a record high, raising attractiveness for Canadian commodities.

The loonie, as the Canadian dollar is often referred to, continued to trade near a four week high versus its U.S. counterpart as the oil, one of the main Canadian exports to the U.S. climbed beyond $80 a barrel, in a day that U.S. posted weak construction industry data.

USD/CAD traded at 1.0526 as of 17:28 GMT from yesterday’s rate of 1.0595...link

Dollar Down on Interest Rates Speculations

The dollar fell today versus several higher-yielding currencies after speculations from Fed key-members suggested that interest rates in the country may remain at a record low for an extended period, declining attractiveness for the U.S. currency since investors can opt for higher returns in assets overseas.
After Federal Reserve Bank of St. Louis President James Bullard affirmed that interest rates in the United States may not start to be hiked until the beginning of 2012, foreign-exchange markets reacted instantly to such declaration pushing the dollar rates down versus the euro, paring previous gains for the greenback and also losing versus its Canadian counterpart, with a better rates hikes prospect for 2010. The Chilean currency extended its record high even further versus the greenback, in an extremely long winning streak that the peso to the highest price in almost 16 months.
Most of analysts remain rather unmotivated regarding the future of the U.S. dollar, as public debt remains high in the country and several other reasons are likely to slow down the recovery in the country compared to other wealthy nations, adding to the pessimism brought today by Bullard’s statements. The dollar is likely to remain under pressure, for an undetermined amount of time.
EUR/USD traded at 1.4943 as of 15:11 GMT from a previous rate of 1.4826 yesterday. USD/JPY remained in neutrality trading at 89.19...link

Pound Down on Policy Makers Disagreement

The British currency went down today versus the euro and the dollar as a statement regarding a policy makers meeting yesterday indicated divergent opinions concerning the asset-purchase program, declining attractiveness for the pound as the central bank has not found a point of consensus towards the future of the U.K.’s monetary policy.
After several days gaining versus major currencies, the pound’s rally was halted today after Bank of England’s meeting minutes discussions were published, showing that despite the fact the majority of policy makers voted for a 25 billion pound boost for the current BOE’s asset-purchase program, one policy maker suggested a further expansion and another opted for no changes in the current program’s budget, evidencing a split inside Britain’s monetary decision makers, which decreased confidence towards the future of the country’s economy, setting the pound down versus the euro and several other major currencies in foreign-exchange markets this Wednesday.
As the economy in the British Isles start to improve, it is likely that the current quantitative measures being used by the Bank of England to stimulate the economy will be phased out gradually, but the lack of consensus regarding policy makers is unwelcome for the pound’s outlook, as traders could then opt for countries with a more solid monetary policy, purchasing assets in Australia for example.
GBP/USD traded at 1.6808 as of 14:25 GMT from a previous rate of 1.6853 in the intraday. EUR/GBP traded at 0.8902 from 0.8845...link

Swedish Krona Posts Biggest Fall in 2 Weeks

After the IMF statements regarding a slower than expected global economic recovery, the Swedish krona posted an intense decline versus the U.S. dollar, as traders opted for safety in a rather turbulent trading session.
Several worse than expected U.S. economic reports were published today, declining attractiveness for currencies like the Swedish krona, as the country is relying on a faster economic recovery to save its banking system, which is highly attached to countries facing strong recession, like the Baltic nations of Lithuania and Latvia, forcing the krona down versus the euro and the greenback.
EUR/SEK closed at 10.23 today from a previous close of 10.18 yesterday...link

Chilean Peso Remains Bullish on Central Bank Statement

The Chilean currency managed once again to break a record this Tuesday after the nation’s central bank confirmed that it will remain the interest rates in the country at a record low for the next semester, improving demand for peso-priced assets.
The peso has been having a more than great week as virtually all domestic and international events favored the Chilean currency. Apart from the national central bank statement regarding low interest rates, the copper rates, extremely influential to the peso price, are climbing significantly, setting the peso to the highest level versus the U.S. dollar since July 2008...link

Pound Hits Record High on U.K.’s Economic Rebirth

The pound gained versus multiple currencies today and touched the highest rate in 2 months versus its main rival, the euro, as Bank of England officials affirmed that growth is returning to U.K.’s economic outlook and stimulus measures will be lifted on a foreseeable future.
London stocks had a very positive performance today attracting traders to bet on pound-priced assets after the Office for National Statistics posted a report that indicated an increase in the nation’s inflation for the first time in 8 months, suggesting that U.K.’s economy is walking its way out of recession, providing support for the pound to gain in the intraday even versus the U.S. dollar, which had an extremely positive performance today due to market’s risk averse aspect today. Bank of England officials affirmed that multiple reports featuring employment data and consumers surveys are giving solid evidences that U.K.’s economy stopped to deteriorate and is finally having its late recovery.
The perfect combination to push up the pound rates today came with the Bank of England statements added to the inflation numbers, providing enough signals for traders to bring capital back to the British Isles, which had previous months of extreme unattractiveness. If the recuperation of British economic conditions follows, the pound is likely to reach much higher levels, specially versus the euro.
GBP/USD traded at 1.6777 as of 16:43 GMT from a previous rate of 1.6742 yesterday. EUR/GBP traded at 0.8840 from 0.8911...link