Dollar Rises on Low Optimism Session

The U.S. dollar gained massively versus the euro and most of the 16 main traded currencies as risk aversion rose sharply in the beginning of the day as the IMF stated that the global economic recovery will be sluggish, attracting traders to the safety of the greenback.
After the International Monetary Fund statement today affirming that the economic rebound will be a slow and complicated process, the U.S. dollar found grounds to rise significantly together with the Japanese yen, as both currencies are considered the best safe refuge investments for turbulent times. Several U.S. economic data reports were published today mostly showing results below forecasts, which added pessimism today in an already bearish scenario of weak stocks performance, giving a breather for the U.S. dollar that gained distance from the $1.50 level versus the euro, being trading around the $1.45–1.50 band since the beginning of September.
The economic recovery process will be long, and it can be even considered that the global economy will not see a such a fast growth as the one experienced before the crisis for the next decades. The dollar is still on the pressure but, despite that, eventual days of pessimistic news are likely to maintain the dollar in a slow decaying trend, not as fast as many currency specialists suggested.
EUR/USD traded at 1.4834 as of 16:12 GMT from a previous rate of 1.4972 i the intraday. USD/CAD traded at 1.0591 from 1.0442.

Chilean Peso Breaks Another Record on Copper Rise

The main Chilean metallic export provided support for the peso to reach the highest level in 16 months versus the greenback as demand for copper is on the rise after global economies showed further signs of recovery this Monday.
Risk appetite in trading markets remained high this Monday after Japan posted a higher than expected quarterly growth, raising attractiveness for emergent markets assets and providing support for the peso to establish another record high versus the less appealing U.S. dollar, which lost versus most of the main traded currencies today.
USD/CLP traded at 496.55 as of 17:19 GMT from an opening rate of 501.90...link

Growth Forecast Sets Brazilian Real High

The Brazilian real benefited today from positive events in both domestic and international spheres as risk appetite rose worldwide, maintaining the Brazilian currency as the best performing currency among the main traded in foreign-exchange markets in 2009.
Brazilian and global stocks rose today after the Japanese currency posted a higher than expected growth and a the majority of analysts agree that the South American economy will expand more than previously imagined in 2010, forcing the real up versus most of the main traded currencies this Monday.
USD/BRL traded at 1.7092 as of 16:59 GMT from an opening rate of 1.7225 today...link

Bullish Week Start for Canadian Dollar on Stocks

The Canadian dollar continued its previous week rally this Monday as risk appetite remained strong globally, increasing demand for Canadian commodity exports and creating an attractive scenario in Toronto equities markets, as appeal for safety declined, forcing the greenback down.
The Asia-Pacific Economic Cooperation forum agreed that stimulus for economies to become more solid should remain for a certain amount of time, which caused risk appetite to rise this Monday, as these measures are likely to provide a faster recovery in most global economic regions, which brought investors to bet in a more attractive Canadian currency, as a hastened economic recovery is likely to push up demand for Canadian energetic and metallic commodities, bringing capital inflows to the North American nation. Japan posted a higher than expected quarterly economic growth this morning in Tokyo, which also improved markets sentiment in Asia, decreasing attractiveness for the U.S. dollar, which lost against its Canadian counterpart, but also to all other main traded currencies.
The Canadian dollar is profiting from optimism among investors, even if the Bank of Canada remains against a strong currency that could slow down the economic process in the nation. The call for stimulus to continue were essential for the loonie to climb even higher, and its likely that this trend will follow for the next days until a shift in market sentiment happens.
USD/CAD traded at 1.0455 as of 16:22 GMT from a previous rate of 1.0535 when markets opened yesterday.
CAD/JPY traded at 85.48 from 85.92...link

Japan Growth Force Greenback Down

The U.S. dollar started this week losing versus its Canadian counterpart and the euro as the wealthiest economy in Asia posted an unexpected quarterly growth, signaling traders that economic conditions in Asia are improving driving capital flows towards high-yielding options.
The U.S. currency had a poor performance this Monday after the Japanese economy posted a preliminary gross domestic product growth of 1.2 percent for this year’s third quarter, a much higher level than the 0.7 percent forecast, creating a risk appetite scenario in Asia that favored higher-yielding currencies like the Aussie and kiwi dollar, and set the attractiveness for the relative profile of the U.S. dollar down, as Japan was being one of the slowest rebounding economies from the global slump, fact which changed today providing support for Japanese stocks to rally strongly. The yen also gained versus the dollar as investors are repatriating assets to the Asian nation.
The dollar started another week fliriting with the $1.50 level versus the euro, and its likely that this level will once again be surpassed as risk appetite started strong once again this Monday, according to analysts. The global economy still has room for sharp rebounds and it affects traders sentiment in a way that they will look for yield, and that’s a dollar-negative factor which is likely to be present for the next months.
EUR/USD traded at 1.4974 as of 15:21 GMT from 1.4946 when markets opened yesterday. USD/JPY traded at 89.40 from 89.60...link

Canadian Dollar Bullish Versus U.S. Counterpart

The Canadian dollar had a second week of gains versus its U.S. counterpart specially as risk appetite rose this Friday as major European economies posted a quarterly economic growth, favoring commodity exporter countries currencies like the loonie in foreign-exchange markets.
The loonie extended its gains before the end of this week’s session as the national trade balance posted a diminished deficit for the previous month, indicating that exports can overtake imports in a mid-term future, as demand for Canadian commodities are on the rise while major economies rebound around the globe. The U.S. trade balance figures deteriorated beyond expectations, fact which also allowed the Canadian dollar to gain terrain further versus the greenback, even if the Bank of Canada still stresses on the fact that a strong currency can slow down the recovery process in Canada. Stocks rose globally, favoring even further the Canadian currency profile.
This week was rather volatile with risk appetite levels playing a major role for the Canadian currency. In Friday’s session several reasons provided support for the loonie to grow further, and it is very likely that if risk appetite continues strong among traders, the Canadian dollar will once again rally towards parity with its U.S. counterpart.
USD/CAD closed the week at 1.0512 from 1.0738 in the beginning of the week...link

Brazilian Real Ends Losing Streak on Global Optimism

After speculations suggesting that the Brazilian currency will suffer further interventions from the national central bank to stop is rally, the real had a negative performance this week that only ended today after global optimism rose attractiveness for assets in emergent markets.
The Brazilian real managed to rise more than 1 percent versus the U.S. before the end of today’s session as positive data in Europe and Asia forced up demand for commodities and rose risk appetite, bringing investors to inject capital in Brazil despite speculations that further measures to stop the currency’s rally will be taken.
USD/BRL closed at 1.7269 from an opening rate of 1.7345...link