Building Approvals Slump in New Zealand | ForexGen

The New Zealand dollar fell significantly against the other currencies today after the release of the report that showed that the home-building approvals in the country declined to the lowest level in almost 22 years in June.

According to a report released yesterday at 22:45 GMT, the approvals fell 20 percent compared to May to 1,337 on a seasonally adjusted basis. That’s the lowest reading for this indicator since October 1986. Excluding apartment units the approvals lost less — only 13 percent comparing to May.

Economy of the New Zealand declined in the first quarter of 2008 and many economists expect it to fall in the second quarter too. With the falling housing sector, the output will also decline as the construction is a crucial part of the economy.

The declining home construction will lead the central bank to the further rate cuts. Reserve bank of New Zealand has already cut its rate from 8.25 to 8 percent this month. Many investors expect at least one more cut by the end of the year. With the recent housing report some traders will bet on more than 0.25 percent cut.

NZD/USD declined from 0.7446 to 0.7404 as of 8:54 GMT today. NZD/JPY went down from 79.99 to 79.68. Australian dollar felt much better than Kiwi and the AUD/NZD currency pair rose from 1.2844 to 1.2908 today.

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Dollar Falls vs. Euro, Yen on Recession Fears | ForexGen

As the investors feared that the U.S. financial institutions will continue to lose on the credit crunch and the oil prices rose, the U.S. dollar declined from its local maximums against euro and yen.

The U. S. currency fell for a second day against the euro and for the first day against the Japanese yen after the Federal Reserve Bank of Minneapolis President Gary H. Stern said that the U.S. credit crisis will get even worse soon. Dollar declined even against the Great Britain pound today despite the poor dynamics of the pound against other currencies.

As the financial sector is still far from its normal state, the Fed won’t be able to raise the interest rate soon. The lack of traders’ confidence in higher rates prevents dollar from going for any significant bullish rally on Forex.

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Gary H. Stern in his interview for the Financial Times forecasted that the crisis will probably last for a year or even more. The current easement isn’t a recovery, it’s just a small pause in a far more dangerous financial environment according to Federal Reserve Bank of Minneapolis President.

USD/JPY fell from 107.87 to to 107.45 as of 15:23 GMT today; but before decline this currency pair reached it’s highest value since June 26 at 108.07. EUR/USD rose from 1.5697 to 1.5753. GBP/USD went up from 1.9910 to 1.9944.

Yen Gains versus Euro on Stocks Decline| ForexGen

The Japanese yen gained against the euro and other currencies on the Forex market today, making this week the first bullish one since May, as the stock markets declined world-wide spurring sell-off on the carry trade market.

Stock markets declined yesterday in the United States and Europe and continued to fall in Asia today. Such financial environment is considered to be very unattractive for the Forex carry trades, but it proves to be beneficial for the Japanese yen.

The euro is a distinct loser among the major currencies against the yen this week. While other currencies managed to show at least two days of growth against JPY during the last 5 days, euro rose only on Monday and its gain was minimal.

The Japanese yen gains not only from the decline in carry trade popularity but also from the weakness of the euro and other currencies. Recent economical reports from the Eurozone showed that while there is still some room for the rate increase, the consumer and business climates are worsening there.

EUR/JPY declined from 168.38 to 167.76 as of 8:10 GMT today with a weekly drop started from 169.41 — the first bearish week since May 4-8. USD/JPY went down from 107.38 to 106.92 today; GBP/JPY decreased from 213.29 to 212.49 with a daily low at 211.58.

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ZD Nat Lowest since January on Rate Cut | ForexGwn

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The New Zealand dollar fell to its 6-month low level against the U.S. dollar after the Reserve Bank of New Zealand cut the interest rate by a quarter percent point in its first rate reduction in the last five years.

Today New Zealand currency (also known as Kiwi) continued its downward trend started a week ago when traders began to decrease their positions in NZD as the speculations that the central bank will have to lower the benchmark interest rate prevailed.

Even after this rate cut traders continue to expect more rate reductions later this year. As the economic growth declines, the central bank will be forced to lower the record-high rates in order to support the business and consumer activity.

Reduction of the interest rate is a major blow for the New Zealand dollar — a currency which growth relied mostly on the so called carry trades. In NZD-based carry trades investors bought high-yielding New Zealand securities with the cheap Japanese yen and U.S. dollar spurring the demand for the Kiwi.

NZD/USD declined from 0.7438 to 0.7419 as of 9:00 GMT with the daily minimum at 0.7401 — the lowest since January 22. NZD/JPY dropped from 80.26 to 79.85 making it a second declining day in a row. AUD/NZD rose from 1.2903 to 1.2945 as the rate difference between these two currenсies declined.

ZD Nat Lowest since January on Rate Cut| ForexGen

The New Zealand dollar fell to its 6-month low level against the U.S. dollar after the Reserve Bank of New Zealand cut the interest rate by a quarter percent point in its first rate reduction in the last five years.

Today New Zealand currency (also known as Kiwi) continued its downward trend started a week ago when traders began to decrease their positions in NZD as the speculations that the central bank will have to lower the benchmark interest rate prevailed.

Even after this rate cut traders continue to expect more rate reductions later this year. As the economic growth declines, the central bank will be forced to lower the record-high rates in order to support the business and consumer activity.

Reduction of the interest rate is a major blow for the New Zealand dollar — a currency which growth relied mostly on the so called carry trades. In NZD-based carry trades investors bought high-yielding New Zealand securities with the cheap Japanese yen and U.S. dollar spurring the demand for the Kiwi.

NZD/USD declined from 0.7438 to 0.7419 as of 9:00 GMT with the daily minimum at 0.7401 — the lowest since January 22. NZD/JPY dropped from 80.26 to 79.85 making it a second declining day in a row. AUD/NZD rose from 1.2903 to 1.2945 as the rate difference between these two currenсies declined.

At ForexGen filling the orders is instantly and accurate without difference between the quoted price and the execution price. In addition, ForexGen Provide Stops and limits have no slippage. Generally we assure and guarantee that under all situations except the most unexpected volatile condition.