Groupon Now hits 1.5 million deals, outpacing original Groupon

According to the daily-deals provider, the original Groupon platform hit 1.5 million deals sold in 15 months -- three months later than Groupon Now.
Groupon Now has gotten off to a good start.
(Credit: Screenshot by Jessica Dolcourt/CNET)

The original Groupon platform might have set the stage, but Groupon Now has gotten off to an even better start.

Groupon today announced that Groupon Now needed just one year to sell 1.5 million deals. The original Groupon platform needed 15 months to hit that milestone. The 1.5 millionth purchase was made at CiCi Nails in Chicago, where a person bought a $42 manicure and pedicure for $30.

Groupon Now is designed as a real-time, location-based offers service for those who want to immediately redeem a coupon. Merchants can customize the instant deal through a dashboard, and manage how many people can take advantage of the offer at a given time. According to Groupon, its instant service is available in 31 of 175 North American Groupon markets. Groupon plans to bring Groupon Now to more markets "soon."

Barnes & Noble, Microsoft ink $300M deal on e-reading

The software giant will invest $300 million in a new Barnes & Noble subsidiary, giving it a 17.6 percent equity stake in the company. The Nook digital bookstore will be bundled with Windows 8.Barnes & Noble's Nook devices.
(Credit: Sarah Tew/CNET)

Barnes & Noble and Microsoft at one time couldn't get along. Now, they're partners.

The companies announced today that Microsoft has invested $300 million into a new Barnes & Noble subsidiary, known as Newco until the company can come up with a name. The $300 million investment will give Microsoft a 17.6 percent equity stake in the firm. Barnes & Noble, which assumed a $1.7 billion valuation on the subsidiary, will retain 82.4 percent ownership.

Newco will combine Barnes & Noble's digital and college businesses, meaning the retailer's Nook operations and its Nook Study software for students and educators will be a part of the undertaking.

As part of this deal, Barnes & Noble will bundle its Nook digital bookstore with Windows 8 when the next generation of Microsoft's operating system launches later this year. In addition, the companies have settled all of their patent litigation related to use of Android on the Nook tablet, and have formed a "royalty-bearing license under Microsoft's patents for its Nook e-reader and Tablet products."
Related stories

* ZDNet: Could Microsoft-B&N deal lead to Windows 8-based Nook reader?
* Nook spinoff could be next chapter for Barnes & Noble
* Barnes & Noble seeks to reverse ruling in Microsoft patent flap
* CNET's review of the Barnes & Noble Nook Tablet

The partnership between Microsoft and Barnes & Noble is a rather surprising one. For over a year, the companies have been battling in the courts, with the software giant accusing Barnes & Noble of patent infringement. Barnes & Noble has responded with venom, saying that Microsoft was misusing patent law for its gain, and last year went as far as asking the Justice Department to investigate the Windows maker.

"Microsoft is attempting to raise its rivals' costs in order to drive out competition and deter innovation in mobile devices," Barnes & Noble lawyer Peter T. Barbur wrote in an October 17 letter to Gene I. Kimmelman, the chief counsel for competition policy in the Justice Department's antitrust division. "Microsoft's conduct poses serious antitrust concerns and warrants further exploration by the Department of Justice."

Barnes & Noble is among a host of companies that have been targeted by Microsoft for their use of Android. The software company argues that Android violates patents it holds, and has inked a slew of licensing deals with vendors. Barnes & Noble had been one of the few companies attempting to battle it out.

Although the Microsoft-B&N deal is surprising, the bookseller's decision to spin off its Nook unit isn't. Back in January, the company released a statement saying it was exploring the possibility of spinning off the operation so it could "unlock" the value of the Nook unit. In today's statement, Barnes & Noble said that Newco is still a work in progress, adding that it can provide "no assurance that the review will result in a strategic separation or the creation of a standalone public company."

Regardless, Barnes & Noble investors couldn't be more pleased. The company's shares are up a whopping 83 percent to $25 in pre-market trading.

This story has been updated throughout the morning.

Swedish Krona Declines with Industrial Production

The Swedish krona fell today after a report showed that nation’s industrial production declined significantly more than expected and as risk aversion damped demand for European currencies.

Industrial production fell 5.2 percent in February from January, compared to the median forecast of 0.3 percent. Annual decline was 7.1 percent, while an advance by 0.5 percent was predicted by analysts. The krona is also hurt by concerns about the crisis in Europe. The Stoxx Europe 600 Index of shares was down as much as 1.2 percent today.

USD/SEK was up from 6.7515 to 6.7794 as of 14:09 GMT today.

Crude Oil Prices Drag Ruble Down

The Russian ruble was down today, falling for the third day, as prices for crude oil, the main nation’s export, declined amid concerns about the global economic recovery.

Futures on crude oil fell $0.16 to $102.30 per barrel in New York, following yesterday’s decline by 0.8 percent. The ruble depends on the performance of crude as the commodity is the main export good of Russia. Oil was falling on concerns that the global economic slowdown will hurt demand for fuel.

USD/RUB rose from 29.5680 to 29.6700 as of 14:37 GMT today.

US Dollar Heads Higher on Safe Haven Demand

US dollar is heading higher as uncertainty in the financial markets creates a demand for safe haven currencies. Greenback is heading higher against the euro and the UK pound. While the pound has been struggling most of today anyway, this development is new to the euro, a currency that had been seeing some strength earlier.

Right now, the US dollar is gaining favor as stocks retreat and uncertainty rises. Concerns about the eurozone are leading the list of worries resulting in risk aversion. Indeed, worries about Spain and Italy are cropping up again, especially in light of economic data that indicates that the eurozone might be headed for recession.

Even though the US economic data isn’t terribly impressive recently (March payrolls came in lower than expected), there is still the idea that the greenback is the most stale currency in the world, backed by the world’s most stable taxpayer base. Right now, as uncertainty sets in and Forex traders and investors wonder what’s next, the US dollar seems like a good bet as a safe haven.

At 15:43 GMT, EUR/USD has turned lower. While the pair opened above the 1.3100 level, at 1.3106, and saw a session high of 1.3146, the current quote is 1.3079. GBP/USD is also lower, falling to 1.5836 from the open at 1.5893. USD/JPY is lower, though, down to 80.9480 from the open at 81.5100.

Yen Climbs Ahead of Italy’s Debt Auction

The Japanese yen climbed to the highest level in more than a month today before retreating a little as Forex market participants feel uncertain as borrowing costs in European nations rise.

The yield for ten-year Italian notes climbed 23 basis points to 5.69 percent yesterday, the highest level since February 17. The yield of Spain’s securities maturing in 10 years reached 5.99 percent yesterday, the highest since December 12. It looks like concerns about Europe’s debt is firmly rooted and aren’t going to disappear despite all efforts to prevent recession.

The MSCI Asia Pacific Index of shares dropped 0.9 percent today. The Standard & Poor’s 500 Index was down 1.7 percent and the Stoxx Europe 600 Index slumped as much as 2.5 percent yesterday.

USD/JPY was at about 80.91 as of 6:27 GMT today, following the drop from 81.51 to 80.67 yesterday. EUR/JPY traded at 106.05 after falling from 106.76 to 105.51. GBP/JPY was down from 129.54 to 127.94 yesterday before trading at 128.61 today.

Euro Heads Higher — For Now

Euro is higher today, gaining as stocks see some improvement, and as risk appetite overall improves. However, even with relief allowing the euro to push through resistance, the 17-nation currency still remains vulnerable, and there are still questions about how well the eurozone can weather more problems.

Right now, the euro is getting a boost as the stock markets show some signs of relief. Alcoa earnings in the United States are helping quite a bit today, after yesterday’s stock market rout. In the eurozone, things have calmed down a bit as well, providing a little bit of hope for Forex traders.

Spanish bond yields have fallen below 6%, and that is one of the most encouraging signs right now for the euro. German bunds continue to offer such low yields that there are few takers. However, if the Spanish situation flares up again, or if Italy become more problematic, German bunds could suddenly look attractive — even with the low yields.

For the time being, the euro is finding support as things calm down and Forex traders show a measure of optimism. However, the situation in Spain is far from resolved, and the euro remains vulnerable to instability due to widespread sovereign debt problems.

At 13:23 GMT EUR/USD is up to 1.3139 from the open at 1.3081. EUR/GBP is higher at 0.8246, up from the open at 0.8246.

Canadian Dollar Gets a Boost from Optimism

Canadian dollar is gaining against the US dollar right now, receiving a boost on general optimism today. Loonie is getting help as investors find optimism after Alcoa earnings, and on the fact that oil prices are heading higher.

Yesterday, there was a lot of gloom on the market as concerns about the eurozone overshadowed just about everything. High beta currencies retreated; commodity currencies couldn’t find support. Today, though, that has largely changed. Alcoa earnings have sparked optimism, and that means that there is a greater demand for riskier assets — and that includes the Canadian dollar.

Also supporting the loonie is the news that oil prices are on the rise. Optimism is helping oil prices, as is the latest inventory report for the United States. The latest inventory report showed that there was a rise in stockpiles, but the increase wasn’t as steep as what’s been seen lately. This news has sparked hope that Americans might be ready to use more oil again.

As a commodity currency tied to oil, higher oil prices (above $102 a barrel now) help the Canadian dollar, especially against the US dollar.

At 14:48 GMT USD/CAD is lower at 1.0017, down from the open at 1.0044. GBP/CAD, though, is higher at 1.5938, up from the open at 1.5932, thanks in large part to the support UK pound receives from higher equities around the world.

Pound Advances with Retail Sales

The Great Britain pound climbed today after a report showed that UK retail sales grew last month, following a decline in the previous month. The report made Britain’s assets more attractive to investors, who were worried about the economic slowdown in the United Kingdom.

British Retail Consortium reported that retail sales were up 1.3 percent on a like-for-like basis in March from a year ago. The increase followed the drop by 0.3 percent in the previous month. Stephen Robertson, the Director General at BRC, warned against being too exited by the positive data:

    It’s worth remembering the sales comparison is against the weakest month of last year, largely caused by the movement of Easter in the calendar, and we’ll have to see whether this is additional spending or just shopping which has happened earlier than usual. Food sales growth continues to be largely underpinned by food inflation rather than by customers buying more.

He also added that “the overall retail environment is still difficult”.

The pound got additional help from the overall positive sentiment on the Forex market. Fears of the European debt crisis subsided somewhat, making traders more willing to risk, yet uncertainty about prospects for the eurozone make Britain’s assets more attractive as a haven from potential problems in the European Union.

GBP/USD was up from 1.5860 to 1.5903 and GBP/JPY rose from 127.91 to 128.59 as of 21:00 GMT today. EUR/GBP traded at about 0.8238 after earlier it jumped from 0.8244 to 0.8263.

NZD Climbs as Business Confidence Improves, Manufacturing Expands

The New Zealand dollar advanced today, rising for the second trading session, as macroeconomic reports showed that business confidence improved and manufacturing continued to expand, confirming positive developments in the New Zealand economy.

New Zealand Institute of Economic Research reported that business confidence index rose from 0 to 13 in the first quarter of 2012. Business NZ manufacturing index was down from 57.7 in February to 54.5 in March, but is still at the second highest level since May 2011. A figure above 50.0 indicates expansion.

Many analysts point out that the New Zealand currency is torn between opposite forces. Domestic fundamentals are good and positive for the currency, while the global economic environment isn’t particularly favorable to riskier currencies. At the moment, though, news from overseas is good and beneficial for the kiwi.

NZD/USD was up from 0.8179 to 0.8188 and NZD/JPY rose from 66.12 to 66.30 as of 00:51 GMT today. EUR/NZD was near 1.6008 after falling from 1.6018 to 1.5981.

US Dollar Remains Lower in Currency Trading

US dollar is lower today, falling as warnings about the slow economic recovery in the United States remain intact. The US dollar doesn’t look as attractive as it did a couple of weeks ago, and disappointing economic data in the United States is only confirming that view.

US economic data is showing that recovery continues at a rather slow pace. Last week, initial jobless claims rose to 380,000, once again underscoring the fact that the labor market remains relatively weak in the United States. Additionally March core PPI only rose 0.3%, indicating that the US economic recovery remains slow.

Janet Yellen, the vice chair of the Federal Reserve, warned that interest rates will remain low for quite some time, since employment gains and other economic growth has been so modest. This statement has dashed the hopes of some, who had hoped that interest rates would rise sooner than expected.

Some of this speculation was what made the US dollar so attractive at the beginning of April. The idea of solid US economic growth, as opposed to a slowing eurozone economy, boosted demand for the greenback. Now, though, with Fed officials cautioning traders and investors, it looks as though the US dollar is likely to remain weak.

At 13:26 GMT EUR/USD is higher at 1.3157, up from the open at 1.3110. GBP/USD is up to 1.5951 from the open at 1.5907. USD/JPY is a little bit higher at 80.8900, up from the open at 80.8605.

Swiss Franc Gains, SNB Ready to Maintain Ceiling

The Swiss franc rose today against the US dollar, following gains of the euro. The currency fluctuated against the euro, staying near the cap, but not breaking it.

The Swiss National Bank capped the franc at 1.20 per euro last year and the currency has breached the ceiling only once on April 5. Central bank’s interim chief Thomas Jordan assured that the SNB is ready to buy foreign currency in unlimited quantities to maintain the ceiling. Analysts say that the bank won’t pursue aggressive weakening of the currency, but will rather keep the franc near the cap without breaching it. So far, the SNB was successful with this policy.

USD/CHF was down from 0.9172 to 0.9124 as of 14:22 GMT today. EUR/CHF traded at 1.2019, following the rise from 1.2024 to 1.2034.

Euro Rises In Spite of New Concerns

Euro is gaining today, even though concerns remain about Spain and other countries in the eurozone with high amounts of sovereign debt. Continued worries about the eurozone are not enough to keep the euro down as Forex traders show disappointment with US dollar policy.

Recently, gains for the US economy have led some Forex traders to speculate that the Federal Reserve would move up its timetable for interest rate hikes. This speculation, along with concerns about the eurozone, have kept the euro somewhat weak against the greenback. Now, though, with Fed officials squashing hopes of a hike, the euro is getting a boost.

Even though Spanish bond yields are up again, there are concerns about a eurozone recession, and there is a great deal of uncertainty as to whether or not the eurozone is really capable of staving off a full-blown crisis, there is enough risk appetite right now to support the euro. Additionally, with the euro’s better yield, and no expectation of an interest rate hike for the greenback, it isn’t a surprise that the euro is being preferred right now.

At 14:53 GMT EUR/USD is higher at 1.3174, up from the open at 1.3110. EUR/GBP is up to 0.8257 from the open at 0.8242. EUR/JPY is higher at 106.6350, up from the open at 106.0250.

Australia’s Employment Shows Huge Growth, AUD Surges

The Australian dollar jumped today as employment in Australia demonstrated surprisingly huge growth that was about seven times above forecasts, causing speculation that the nation’s central bank will refrain from an interest rate cut.

The Australian Bureau of Statistics reported that the seasonally adjusted number of employed persons rose by 44,000 in March from February. That’s compared to the much smaller figure of 6,400 predicted by analysts. Australian employment decreased by 15,400 jobs in February. The unemployment rate also provided a pleasant surprise, staying at 5.2 percent, while an increase to 5.3 percent was expected.

The encouraging employment data caused economists speculate that the Reserve Bank of Australia may refrain from cutting interest rates as the nation’s economy looks robust enough and doesn’t need stimulus. On the other hand, the economic slowdown in other parts of the world may still outweigh positive domestic fundamentals. Analysts await for the minutes of the RBA meeting that may give hints about the bank’s intentions regarding the monetary policy.

AUD/USD jumped from 1.0298 to 1.0434 and AUD/JPY climbed from 83.26 to 84.39 as of 23:42 GMT today.EUR/AUD slumped from 1.2724 to 1.2635, reaching 1.2609 intraday — the lowest price since March 21.

Loonie Follows Aussie in Advance

The Canadian dollar jumped yesterday and so far has kept its gains today as stocks and commodities advanced on speculation that the Federal Reserve will maintain its interest rates record low for prolonged time.

The Canadian dollar followed the Australian dollar that jumped on very good employment data, dragging commodities and commodity-related assets along. Signs that the Fed is going to maintain its stimulating monetary policy are also good for riskier currencies. The Standard & Poor’s 500 Index rose 1.4 percent. The S&P/TSX Composite Index added as much as 1.6 percent.

The Bank of Canada will hold a monetary policy meeting next week. It’s expected to maintain the key overnight rate at 1 percent as it was doing since September 2010. Canada was the first among developed nations to raise its interest rates and some analysts say that it may raise the rates again. Others point out that Canada’s monetary policy is tied to that of the United States and the Fed isn’t going to raise its lending rates anytime soon.

USD/CAD slumped from 1.0037 to 0.9942 yesterday and stayed near that level today, while EUR/CAD traded at about 1.3113 as of 1:32 GMT today, following the drop from 1.3156 to 1.3109 yesterday. CAD/JPY jumped from 80.51 to 81.30 on the previous trading session and rose to 81.45 on today’s session.

Dollar Index Rises as Risk Appetite Fades on China

It’s been a wild couple of days in the financial markets, with risk appetite returning to some extent and riskier assets favored. Now, though, risk appetite is fading and the US dollar is gaining ground against other majors as disappointing news from China spurs the search for a safe haven.

The US dollar index is on the rise again, heading higher as risk aversion rises. Chinese growth appears to be slowing, and that is dashing the hopes of those who expected China to lead a global economic recovery. With Chinese growth slowing, there are concerns that the global economy will remain in the doldrums for quite a while. Chinese growth slowed to 8.1% in the first quarter, down from the 8.9% increase seen at the same time last year.

The result is that concerns are leading Forex traders to favor the US dollar for its safety and stability. The China news has dashed enthusiastic hopes, as well as brought many back to some of the other realities of the financial markets — including the ongoing sovereign debt crisis in Europe. There are concerns about Spain, and there are still worries about contagion.

At 13:26 GMT the dollar index is up to 79.571 from the open at 79.349. EUR/USD is down to 1.3128 from the open at 1.3187. GBP/USD is down to 1.5936 from the open at 1.5960. USD/JPY is up to 81.0370 from the open at 90.9000.

Won Gains as North Korean Rocket Launch Fails

The South Korean won rose today after North Korean rocket launch failed, easing tensions in the region. The overall positive mood on the Forex market also benefited the currency.

South Korean politicians were concerned that the rocket launch was a part of nuclear weapon tests and threatened the country. North Korean claimed that the rocket wasn’t nuclear weapon and carried a satellite as a part of celebration for the centennial of state founder Kim Il Sung. Anyway, the rocket exploded within minutes of its launch.

USD/KRW fell from 1,133.6000 to 1,135.1000 as of 13:57 GMT today.

Will the Great Britain Pound Strengthen Further?

Great Britain pound is showing weakness against the US dollar right now, but it is higher against the euro — and many think that the pound is likely to continue making gains against the the 17-nation currency in the near future.

Sterling is struggling against the US dollar, along with other high beta currencies today. Risk appetite is hard to come by with the latest news out of China encouraging concerns about the global economic recovery. However, even though the pound is down against the greenback, it is gaining against the euro.

Part of the risk aversion in the markets is that focus is once again including Spain, and what could be next for the embattle country. Bond yields have risen again, and talk of sovereign debt contagion is pressuring the euro. As a result, the UK pound is looking like an attractive alternative to the 17-nation currency, and some expect pound strength to continue against the euro.

Of course, the pound could find itself weaker if the Bank of England takes a hand in efforts to weaken the sterling. The pound has been higher against a basket of currencies important to British trade, and the BOE might decide that a little policy shift could help keep the sterling a little weaker — and give the edge to Britain in trade.

At 14:28 GMT EUR/GBP is down to 0.8239 from the open at 0.8263. GBP/USD is lower at 1.5885, down from the open at 1.5960.

Rand Slips as China’s Economic Growth Slows

The South African rand slid today after the government report showed that China’s economic growth slowed in the first quarter of this year more than market participants expected.

Chinese gross domestic product grew 8.1 percent in the first quarter of 2012 from a year ago. That’s compared to the 8.9 percent increase in the previous quarter and market expectation of 8.4 percent growth. The Standard & Poor’s GSCI Index declined 0.4 percent. The report was negative for all commodity currencies, but it was particularly bad for the rand as China was the biggest importer of South African raw materials in 2011.

USD/ZAR climbed from 7.8620 to 7.9420 as of 15:58 GMT today.

Euro Down as ECB Doesn’t Want to Buy Spain’s Debt

The euro fell today as Spanish borrowing costs rose, but the European Central Bank signaled that it’s not going to buy nation’s debt, spurring talks that the debt crisis may spread to Spain.

The yield on 10-year Spanish sovereign bond climbed 18 basis points, or 0.18 percentage point, to 6 percent. The cost of insuring against a default in Spain jumped to a record. Klaas Knot, a member of the ECB governing council, said that he doesn’t see a reason to buy Spanish government securities.

Overseas, the economic environment also wasn’t particularly good. University of Michigan said in a preliminary report that US consumer confidence unexpectedly fell this month. China’s economic growth slowed, reigniting fears of so-called hard landing. The dollar strengthened on resulting risk aversion, driving the euro further down.

EUR/USD was down from 1.3185 to 1.3077 today. EUR/JPY dropped from 106.66 to 105.81, following the rise to 107.09. EUR/GBP ticked down from 0.8261 to 0.8249 and touched the intraday low of 0.8227.

Australian Dollar Falls, China to Blame

The Australian dollar fell as signs of economic slowdown in China spooked Forex traders, causing concerns that demand for assets of the South Pacific nations will decline. The currency closed higher against the euro.

China’s economic growth slowed, reducing attractiveness of growth-related assets. China is a major trading partner of many commodity-exporting countries, Australia among them.

Sue Trinh, a senior foreign-exchange strategist at Royal Bank of Canada, commented on the market reaction to the slowdown of the Chinese economy:

    The market is still surprised,. We’re going to be watching at any increase in speculation of monetary policy easing by the Chinese authorities, which may at least help to prevent a deeper retracement in the Aussie.

News from the United States and Europe wasn’t good either, leading to a drop against the greenback and the yen, but also resulting in an advance versus the euro. The Aussie ended the week relatively good as fundamentals in Australia were largely favorable, mitigating the negative impact of risk aversion sentiment.

AUD/USD was down from 1.0437 to 1.0371 and AUD/JPY fell from 84.42 to 83.91. At the same time, EUR/AUD closed at 1.2604, following the jump from the opening price of 1.2629 to the daily maximum of 1.2684.

Second Week of Gains for Yen

The Japanese yen gained for the second week as risk aversion sentiment prevailed on the Forex market, while the Bank of Japan refrained from easing its monetary policy despite its promises.
The BoJ left its interest rates and asset-purchase program unchanged for the second time at its meeting on April 10. Such decision left frustrated those traders who expected the Bank to intervene. Still the central bank signaled that it’s going to ”pursue powerful monetary easing”, thus limiting the gains of the yen.
News from other parts of the world was also supportive for the Japanese currency. Rising unemployment claims in the United States, growing borrowing costs in Spain and slowing China’s economy made traders to buy safer currency of Japan, avoiding risk.
The yen ended flat on Monday as most markets were closed, though fluctuations were noticeable. The currency fell on Tuesday as traders digested the report that that employment growth in the USA was much slower than anticipated. The yen was falling next two days as investors demonstrated some risk appetite, but China’s growth of GDP that was slower than expected returned demand for Japan’s currency and it jumped on Friday.
USD/JPY fell from 81.51 to 80.90 this week, touching 80.56, the lowest rate since February 29. EUR/JPY was down from 106.76 to 105.81, while the weekly low of 105.44 was the lowest since February 22. GBP/JPY declined from 129.45 to 128.20, reaching during the week 127.86 — the lowest since March 8.

China Gives Yuan a Little More Room to Float

For years, other countries have been asking China to let the yuan, also called then renminbi, to float more freely on the currency market. It appears that China is doing that now, with an announcement that the yuan will be allowed to float more freely against the US dollar.

China announced that it will allow the yuan to float a little more freely against the US dollar, allowing the currency to move one per cent to either side of the US dollar currency peg. The yuan will not be a truly free floating currency as a result of the new policy, but it will have a little more flexibility.

For years, Western countries, especially the United States, have charged that the Chinese undervalue their currency, keeping it artificially low against the US dollar. This allows for an edge in exports, as a weaker yuan makes goods cheaper to purchase by consumers in other countries. Many expect that if Chinese policymakers were to ever let the yuan freely float, it would appreciate quite quickly.

This appears to be something of a step in a direction for more flexibility. Chinese leaders can maintain the dollar peg, but slowly ease the yuan into the currency market. Right now, the dollar/yuan is at 6.3149.

US Dollar Heads Higher on Spanish Concerns

Once again, the US dollar index is heading higher, gaining as concerns about what’s happening in the eurozone take precedence over much else. Greenback is also getting help from the fact that the US economy seems ready to recover better than the eurozone economy right now.

US dollar is higher against European currencies today, gaining against the euro and the pound. The economic situation in the United States is showing some improvement, with March retail sales gaining by 0.8% since February — and up more than 6% since March 2011. The news is helping the US dollar as concerns about the eurozone economy (which some think might be in recession or heading that way) continue to hold the 17-nation currency down.

Concerns about Spain continue to weigh on the eurozone, and there are still issues regarding the British economy, so the euro and the pound are both losing ground to the dollar. And, interestingly, just after the Chinese introduced a wider trading band for the yuan against the US dollar, the greenback ended higher against the yuan. It’s an interesting day right now, with the greenback gaining against other majors, except the yen, which is higher against the dollar.

At 14:36 GMT EUR/USD is lower at 1.3049, down from the open at 1.3064. GBP/USD is down to 1.5845 from the open at 1.5853. USD/JPY is down to 80.4145 from the open at 80.8495.

Euro Lower Against Many Counterparts

Euro is lower against many of its counterparts today, dropping as concerns about the European debt situation continue to dominate the news. Spain is expected to auction off bonds today, and there are concerns about climbing yields. Additionally, there are expectations of a drop in investor confidence in Germany.

Concerns about the eurozone are dominating news today as Forex traders consider that the sovereign debt situation might be contagious. Worries about the spread of the crisis are keeping the euro lower against most of its major counterparts. It’s also not helping that, in Germany, investor confidence appears to be waning.

For now, the ECB isn’t interested in bailing out Spain. The Spanish Prime Minster, Mariano Rajoy, says that Spain will employ large cuts, but it might not be enough. Besides, large cuts from the eurozone’s fourth-largest economy could slow eurozone economic growth as a whole, and there are already recession fears.

It is little surprise that the eurozone is struggling, and that the euro is struggling as well. The 17-nation currency is down against the US dollar and the UK pound, as well as struggling against many other currencies today.

At 13:27 GMT EUR/USD is lower at 1.3131, down from the open at 1.3141. EUR/GBP is down to 0.8237 from the open at 0.8266. EUR/CHF is lower at 1.2016, down from the open at 1.2018.

Bank of Canada Comments Send Loonie Higher

Right now, the Canadian dollar is seeing gains against nearly all of its major counterparts as the Bank of Canada comes out sounding a bit hawkish. Loonie is finding support in general risk appetite as well, and receiving some help from higher oil prices.

Everything seems to be going right for the Canadian dollar today. The BOC came out and said that putting a stop to stimulus measures might be a priority, and many are taking that to mean that an interest rate hike is on the way. In a low-yield environment, any currency connected to an interest rate hike is likely to be favored in the currency market.

On top of the seemingly hawkish comments from the Bank of Canada, there are also other forms of support for the loonie in forex trading. Risk appetite in general is on the rise, as demand in the Spanish bond auction allays some economic fears. The International Monetary Fund has improved its forecast for the global economy, including a boost for the US economy, which is a major trading partner for Canada. Higher oil prices are also helping the loonie today, since oil is a major export for Canada.

At 14:24 GMT USD/CAD is down to 0.9875 from the open at 0.9993. GBP/CAD is lower at 1.5739, down from the 1.5890. EUR/CAD is down to 1.2966 fromt he open at 1.3120.

US Dollar Index Gains as Traders Consider Consolidation

Yesterday’s buoyant tone and risk appetite have receded, leaving the US dollar to log gains against some currencies right now. The dollar index is heading higher, as the greenback gains against some of its major counterparts, especially the euro and the yen.

Yesterday, better news out of Europe, combined with an enthusiasm for stocks, led to a lower US dollar. The dollar index dropped below 80 as many traders looked for better yields. Today, though, many have taken a bit of a step back. Stock traders appear to be in consolidation mode after yesterday’s spectacular rally, and there is once again some focus on the eurozone and its problems.

Right now, though, a higher US dollar is putting downward pressure on commodities. Gold prices are lower today, along with oil prices. Greenback is showing strength against the euro and franc, as well as against the yen right now, which is boosting the dollar index performance. This is significant, as the US dollar is modestly lower against the pound today, and mostly flat against the Canadian dollar.

This mixed performance by the US dollar isn’t stopping the dollar index from rising, though. The gains made by the dollar against the euro and the yen are significant enough to keep the dollar index in positive territory.

At 13:08 GMT the dollar index is at 79.827, up from the open at 79.570. EUR/USD is down to 1.3072 from the open at 1.3126. USD/JPY is up to 81.3515 from the open at 80.8430. GBP/USD is up to 1.5977 from the open at 1.5926. USD/CHF is up to 0.9199 from the open at 0.9152. USD/CAD is mostly flat at 0.9902 from the open at 0.9903.

Japanese Yen Falls on Rumors of Further Economic Stimulus

Japanese yen is heading lower today, dropping against other majors as rumors swirl regarding the possibility of further economic stimulus. The idea that more easing for the yen could be coming is weakening the currency against the dollar and the euro.

Kiyohiko Nishimura, a deputy governor at the Bank of Japan, spoke recently, insisting that the Japanese economy needs more help to recover. He also cited global economic uncertainties that should prompt Japanese policymakers to take action. Nishimura’s comments, coming just nine days before the next Bank of Japan policy meeting.
The tenor of Nishimura’s comments are leading many to believe that the BOJ will announce more quantitative easing — and perhaps even intervene directly in the currency market to keep the yen weak. Japanese leaders prefer a weak yen to a strong one, since a weaker yen leads to an edge when it comes to exports. A weaker currency can help economic growth, and that is what the BOJ is looking for right now.
It looks as though the BOJ is ready to take action, and Forex traders are rushing to re-position, selling the yen and getting ready for another drop, with the dollar and the pound especially gaining against the Japanese currency.
At 14:23 GMT, USD/JPY is up to 81.3035 from the open at 80.8430. EUR/JPY is also higher at 106.4250, up from the open at 106.1000. GBP/JPY is up to 130.0790 from the open at 128.7450.

Euro Weakens as Questions Persist

Euro is weakening today against the US dollar and the UK pound as questions about the economic viability of the eurozone persist. Even though it’s clear that eurozone countries can still sell bonds, investors are asking for higher yields. The continued economic struggle in the eurozone is weighing on the euro.

Economic forecasts for the eurozone have the region slowing this year, and some think that a recession could already be underway. With so many countries enforcing austerity measures, there isn’t the spending to spur economic growth. Bond auctions are seeing success, but yields are rising. Spanish bond yields are higher, and even French bond yields are higher on the expectation that sometime later this year or early next year France’s rating will be downgraded.

As a result, the euro is dropping on the Forex market. Euro is down against the US dollar as risk aversion and a better situation in the United States both weigh on the 17-nation currency. Euro is also down against the UK pound. The Bank of England has indicated that need for stimulus might be past, and that is boosting the British currency. Euro has even pared its recent gains against the Japanese yen.

At 13:26 GMT EUR/USD is down to 1.3105 from the open at 1.3123. EUR/GBP is lower at 0.8170, down from the open at 0.8191. EUR/JPY is higher at 106.8045, up from the open at 106.6300, but off the session high of 107.3750.

UK Pound Gains as BOE Prepares to Wind Down Stimulus

UK pound is seeing gains again today, heading to highs not seen for 19 months against the euro. Sterling is also up against the US dollar as Forex traders look for signs that the BOE is ready to raise rates. With no more quantitative easing in the immediate future, pound is getting a boost, even though the general market tenor is one of risk aversion.

The Bank of England recently released the minutes of its last Monetary Policy Committee meeting, and they show that the BOE is ready to roll back its stimulus efforts. Adam Posen, who has been asking for more stimulus in meetings, noticeably didn’t in the last meeting. Additionally, it appears that the BOE policymakers discussed inflation, and concerns about keeping it under control.

While this doesn’t mean that the next BOE meeting will result in an interest rate hike, it does indicate that quantitative easing is no longer deemed necessary by monetary leaders in Great Britain. The result is helping the UK pound on the currency market, since it seems to indicate that at some point a rate hike will be in order, and that further efforts to weaken the sterling in the name of economic stimulus aren’t on the table.

At 14:38 GMT EUR/GBP is down to 0.8186 from the open at 0.8191. GBP/uSD is higher at 1.6054, up from the open at 1.6023.

Aussie Mostly Soft as Week Draws to a Close

Australian dollar is mostly softer as the week draws to a close. Aussie has been weakened this week by risk aversion and concerns about what’s happening in the eurozone. Also, recently, the news out of China has been somewhat disappointing, and that has been weighing on the Aussie as well, since the Chinese economy is a major support to the Australian economy.

Aussie is higher against the US dollar today, gaining as a measure of risk appetite returns to the markets. US stocks are showing signs of recovery as earnings news spurs bulls forward. Additionally, the high demand for sovereign debt in the eurozone (even though yields are a bit high) is helping to allay some fears for the 17-nation currency region.
Australian dollar is finding some support against currencies like the dollar and the yen today. However, Aussie is lower against the euro and the pound. The mixed performance is to be somewhat expected, though, as European currencies make a comeback. Against the dollar and the yen, the Aussie’s superior interest rate and high return potential is helping.
At 15:30 GMT AUD/USD is higher at 1.0354, up from the open at 1.0344. EUR/AUD is up to 1.2726 from the open at 1.2705. GBP/AUD is up to 1.5538 from the open at 1.5520. AUD/JPY is higher at 84.64, up from the open at 84.43.

US Dollar Pulls Back as Risk Appetite Returns

Risk appetite is making a comeback in the markets today, and that is sending the US dollar mostly lower. The dollar index is losing ground, and the greenback is lower against many of the majors, especially the European currencies. With better earnings news out of the United States, and with better news in the eurozone, Forex traders are ready for a little risk.

US dollar is pulling back as Forex traders look for better returns, mostly with European currencies and the Down Under currencies. Greenback is down against the euro and the pound right now as the better news results in a return to risk appetite. In the United States, earnings news is driving the markets. Solid earnings data and forecasts for the rest of 2012 have stocks gaining and risk appetite on the rise. This, in term, means a lower US dollar.

On top of that, the euro is getting help from the latest German Ifo data. The business sentiment survey from the Ifo shows that confidence is better than expected. Even though there are concerns about a eurozone recession, it appears that there are still those that are confident in once next. Also helping European currencies is the fact that the IMF has secured Russian funding.

At 14:21 GMT EUR/USD is up to 1.3208 from the open at 1.3137. GBP/USD is up to 1.6132 from the open at 1.6052. USD/JPY is up to 81.6705 from the open at 81.6050.

Australian Dollar Sinks on Falling PPI

The euro was down today on concerns about the outcome of the presidential elections in France. The report that showed the manufacturing index falling to the lowest level in almost three years also had its negative impact on the currency.
Socialist Francois Hollande won the first round of elections, while incumbent President Nicolas Sarkozy was the second. The anti-euro far-right National Front, led by Marine Le Pen, was third, showing that resentment against the eurozone is growing in France.
Markit Economics reported that the eurozone manufacturing Purchasing Managers’ Index slipped from 47.7 in March to 46.0 in April. Such low level was last seen in July 2009. Traders hoped that the index would rise to 48.1.
EUR/USD was down from 1.3182 to 1.3149 and EUR/JPY slid from 107.47 to 106.59 as of 10:22 GMT today.

.Australian Dollar Sinks on Falling PPI

The Australian dollar slumped today as the unexpected decline of producer prices in the first quarter of this year led to speculation that Australia’s central bank will decrease its interest rates on the next monetary policy meeting.

The government report showed today that Australia’s Producer Price Index fell 0.3 percent in the first quarter of 2012 from the previous three months. The report frustrated analysts who anticipated the index to accelerate from 0.3 percent in the fourth quarter of 2011 to 0.5 percent in the March quarter of this year. The decline of the PPI made economists speculate that the Reserve Bank of Australia will cut interest rates during its next monetary meeting in May. In fact, some forecasters say that the potential decrease of the rates in May can be followed by a cut in June.

AUD/USD went down from 1.0368 to 1.0289 and AUD/JPY fell from 84.50 to 83.45 as of 11:09 GMT today.

US dollar is gaining today on the Forex market as traders look for safe haven. Uncertainty is causing problems, and that is prompting traders to look to capital preservation and stability. Greenback is backed by the most stable taxpayer base in the world, so it’s no surprise that it is on the rise today. For the most part, US dollar is higher as traders express uncertainty about what is happening in Europe. European manufacturing contracted in April, as shown by the preliminary composite PMI for the eurozone. The news triggered concerns about eurozone economic growth and resulted in euro selling against the US dollar. Also not helping matters is the possibility of an early general election in the Netherlands (due to budget disagreements) and a runoff in France, with Nicolas Sarkozy in second place. With all this uncertainty, Forex traders are turning to low beta currencies like the US dollar and the Japanese yen. Dollar is gaining the upper hand as traders recognize that the economy is in better shape than the eurozone economy, and as all eyes remain on the eurozone sovereign debt situation. At 14:12 GMT EUR/USD is down to 1.3121 from the open at 1.3185. GBP/USD is down to 1.6093 from the open at 1.6124. USD/JPY is also lower as the yen gains the upper hand: 81.1560 down from the open at 81.5165.

US dollar is gaining today on the Forex market as traders look for safe haven. Uncertainty is causing problems, and that is prompting traders to look to capital preservation and stability. Greenback is backed by the most stable taxpayer base in the world, so it’s no surprise that it is on the rise today.

For the most part, US dollar is higher as traders express uncertainty about what is happening in Europe. European manufacturing contracted in April, as shown by the preliminary composite PMI for the eurozone. The news triggered concerns about eurozone economic growth and resulted in euro selling against the US dollar. Also not helping matters is the possibility of an early general election in the Netherlands (due to budget disagreements) and a runoff in France, with Nicolas Sarkozy in second place.

With all this uncertainty, Forex traders are turning to low beta currencies like the US dollar and the Japanese yen. Dollar is gaining the upper hand as traders recognize that the economy is in better shape than the eurozone economy, and as all eyes remain on the eurozone sovereign debt situation.

At 14:12 GMT EUR/USD is down to 1.3121 from the open at 1.3185. GBP/USD is down to 1.6093 from the open at 1.6124. USD/JPY is also lower as the yen gains the upper hand: 81.1560 down from the open at 81.5165.

US Dollar Gains on Safe Haven Demand

US dollar is gaining today on the Forex market as traders look for safe haven. Uncertainty is causing problems, and that is prompting traders to look to capital preservation and stability. Greenback is backed by the most stable taxpayer base in the world, so it’s no surprise that it is on the rise today.

For the most part, US dollar is higher as traders express uncertainty about what is happening in Europe. European manufacturing contracted in April, as shown by the preliminary composite PMI for the eurozone. The news triggered concerns about eurozone economic growth and resulted in euro selling against the US dollar. Also not helping matters is the possibility of an early general election in the Netherlands (due to budget disagreements) and a runoff in France, with Nicolas Sarkozy in second place.

With all this uncertainty, Forex traders are turning to low beta currencies like the US dollar and the Japanese yen. Dollar is gaining the upper hand as traders recognize that the economy is in better shape than the eurozone economy, and as all eyes remain on the eurozone sovereign debt situation.

At 14:12 GMT EUR/USD is down to 1.3121 from the open at 1.3185. GBP/USD is down to 1.6093 from the open at 1.6124. USD/JPY is also lower as the yen gains the upper hand: 81.1560 down from the open at 81.5165.

Traders Shun Risk on French Elections, Loonie Weakens.

The Canadian dollar fell against the US dollar and the Japanese yen today on concerns about the French elections. The currency trimmed its losses, but remains below the opening price for now. The loonie rose versus the euro.

Risk aversion prevails in the Forex market today as the presidential elections in France make investors concerned about the futures of the eurozone. There are also plenty of other reasons to worry about Europe, but France is currently on the forefront of news headlines. The Standard & Poor’s 500 Index was down 1 percent. Other growth-related assets also suffered.

Not all is bad for the Canadian currency. The Bank of Canada maintained interest rates unchanged last week, but the statement was surprisingly hawkish. An interest rate hike is expected next month and such expectations are likely to support the loonie in the immediate future.

USD/CAD was up from 0.9917 to 0.9978 before trading at 0.9938 as of 15:51 GMT today. CAD/JPY dropped from 82.08 to 81.60, following the fall to 81.20. EUR/CAD slipped from 1.3071 to 1.3048, erasing the earlier advance to 1.3121.

Pound Goes Higher vs. Euro as Future of Europe Still Uncertain

The Great Britain pound rose against the euro and erased its losses versus the US dollar as fears of Europe’s troubles drove investors to the relative safety of the UK currency. The sterling retreated a little against the greenback today and continued to fall versus the Japanese yen.

The elections in France spooked Forex traders and made them search for a refuge. The possibility of early elections in Netherlands added to concerns. Some of market participants found haven in Britain’s currency.

The United Kingdom has its share of problems that may affect the pound negatively in the future. On the other hand, Britain’s economy looks to be improving somewhat. Analysts predict that gross domestic product rose 0.1 percent in the first quarter of this year. That’s not fast growth, but still is better than the decline by 0.3 percent in the previous three months.

GBP/USD was at 1.6121 as of 00:43 GMT today after rising from 1.6120 to 1.6131 yesterday. EUR/GBP traded at about 0.8158, following yesterday’s slump from 0.8176 to 0.8158. At the same time, GBP/JPY fell from 130.92 to 130.84.

Traders Sell Won in Favor of Dollar on European Politics

The South Korean won fell today as concerns about the political situation in Europe caused traders to sell riskier assets of Asian nations in favor of safer ones, including the US dollar.

Current French President Nicolas Sarkozy lost the first round of presidential elections, while the anti-euro National Front had unexpectedly high support of voters. Dutch Prime Minister Mark Rutte offered to step down yesterday as his attempts to implement austerity measures were met with resistance. Forex traders are buying the dollar as a shelter against the European problems, while riskier currencies find less demand. The tension between North and South Koreas doesn’t help the won either.

USD/KRW rose from 1,139.6000 to 1,140.9000 as of 8:47 GMT today, while the intraday high was 1,142.5000.

Pound Goes Higher vs. Euro as Future of Europe Still Uncertain

The Great Britain pound rose against the euro and erased its losses versus the US dollar as fears of Europe’s troubles drove investors to the relative safety of the UK currency. The sterling retreated a little against the greenback today and continued to fall versus the Japanese yen.

The elections in France spooked Forex traders and made them search for a refuge. The possibility of early elections in Netherlands added to concerns. Some of market participants found haven in Britain’s currency.

The United Kingdom has its share of problems that may affect the pound negatively in the future. On the other hand, Britain’s economy looks to be improving somewhat. Analysts predict that gross domestic product rose 0.1 percent in the first quarter of this year. That’s not fast growth, but still is better than the decline by 0.3 percent in the previous three months.

GBP/USD was at 1.6121 as of 00:43 GMT today after rising from 1.6120 to 1.6131 yesterday. EUR/GBP traded at about 0.8158, following yesterday’s slump from 0.8176 to 0.8158. At the same time, GBP/JPY fell from 130.92 to 130.84.

Traders Sell Won in Favor of Dollar on European Politics

The South Korean won fell today as concerns about the political situation in Europe caused traders to sell riskier assets of Asian nations in favor of safer ones, including the US dollar.

Current French President Nicolas Sarkozy lost the first round of presidential elections, while the anti-euro National Front had unexpectedly high support of voters. Dutch Prime Minister Mark Rutte offered to step down yesterday as his attempts to implement austerity measures were met with resistance. Forex traders are buying the dollar as a shelter against the European problems, while riskier currencies find less demand. The tension between North and South Koreas doesn’t help the won either.

USD/KRW rose from 1,139.6000 to 1,140.9000 as of 8:47 GMT today, while the intraday high was 1,142.5000.

GBP/USD Higher as Consumer Confidence Improves

The Great Britain pound rose today against the US dollar after a report showed that confidence of Britons unexpectedly improved last month, muting speculations about quantitative easing from the Bank of England. The currency was down against the Japanese yen.

Nationwide Building Society reported that the index of consumer confidence rose to 53 in March from 44 in February. The median forecast was 42. The report warned that the improvement of sentiment may be short-lived. Nevertheless, analysts started to speculate that the BoE would refrain from stimulating the economy. Tomorrow’s report from GfK is also expected to show an improvement of confidence.

GBP/USD climbed from 1.6162 to 1.6207 before trading at 1.6184 as of 11:45 GMT today. GBP/JPY fell from 131.47 to 130.96.

Euro Rangebound in Forex Trading

Euro is mostly rangebound today, making small gains against the US dollar, after a Dutch bond auction proved reasonably successful. The euro has been struggling lately due to concerns about the political stability of eurozone countries, as well as continued worries about Spain.

Earlier, a bond auction in the Netherlands was deemed a success. There had been some questions about the bond auction, since the resignation of Prime Minister Mark Rutte and the collapse of the Dutch government. With politicians unable to agree on budgetary measures, the government is at an impasse and an early general election looks like it will be called.

The bond auction out of the Netherlands, though, is steadying the euro somewhat in Forex trading. It appears that the Netherlands is likely to maintain its AAA rating — one of the few eurozone countries that still has such a rating. However, the euro is far from out of the woods.

Concerns about Spain, as well as worries about other countries with sovereign debt problems, are still extent. And, of course, there is uncertainty in France, where Nicolas Sarkozy appears to be losing the presidential race.

At 13:07 GMT EUR/USD has started to break higher at 1.3166, up from the open at 1.3157. EUR/JPY is lower at 106.7410, down from the open at 106.8145. EUR/GBP remains at the same level as the open, at 0.8158.

Japanese Yen Mixed Today

Japanese yen is mixed today as Forex traders look for direction. There is a lot to think about today, in terms of news and forecasts, and currencies are part of the confusion. Yen has slipped against the euro after choppy trading, but is higher against the pound and the dollar.

Japanese yen is down against the euro, which is gaining ground on the enthusiasm surrounding a solid Dutch bond auction — in spite of the recent resignation of Mark Rutte and the collapse of the government in the Netherlands. However, yen is higher against the dollar and the pound as Forex traders and others show a measure of caution.

US stocks continue to gain cautiously, and European stocks remain mixed. There is a lack of direction in the financial markets today, and that is translating to the currency market. It is uncertain, however, how much longer the yen will remain higher against the dollar. The recent strength of the yen has Japanese lawmakers concerned, and pressure is building for the Bank of Japan to take matters into its own hands and intervene to weaken the yen.

At 14:06 GMT USD/JPY is lower at 81.0785, down from the open at 81.1900. EUR/JPY is higher at 107.0030, up from the open at 106.8145. GBP/JPY is lower at 130.8140, down from the open at 130.9550.

Aussie Goes Down as CPI Growth Below Expectations

The Australian dollar fell today as a government report showed that nation’s consumer prices rose in the last quarter far slower that was anticipated by market analysts, triggering speculation about an interest rate cut.

Australia’s Consumer Price Index rose 0.1 percent in the first quarter of 2012, while much bigger growth by 0.7 percent was predicted by economists. The trimmed mean CPI (core CPI) increase 0.3 percent, while forecasters said that it would stay at 0.6 percent as in the the fourth quarter of 2011. The slowing inflation added incentive for the Reserve Bank of Australia will reduce interest rates. The problems in Europe also reduce demand for the Aussie, as well as other currencies with higher yield.

AUD/USD fell from 1.0321 to 1.0310 as of 14:35 GMT today, following the drop to 1.0246 — the lowest level since April 11. AUD/JPY was down from 83.76 to 82.85 before trading at 73.68

Rand Gains for Second Day on European Bonds & US Corporate Profits

The South African rand gained today for the second day after yields on European bonds fell, easing nervousness about Europe’s troubles, and as US corporate profits were above forecasts.

Falling yields for Spanish, Italian and Dutch bonds gave investors hope that Europe may yet emerge from its financial crisis. Apple reported that it almost doubled its profit in the second fiscal quarter as demand for iPhone grew in China. All in all, market sentiment was good today and that allowed riskier currency of South Africa to advance.

USD/ZAR fell from 7.7910 to 7.7590 as of 8:49 GMT today, while the daily low of 7.7480 was the lowest since April 4.

Pound Falls as GDP ShrinksThe Great Britain pound fell today after a government report showed that the UK economy unexpectedly declined in the first quarter of this year, reducing appeal of the nation’s currency. Britain’s gross domestic product dropped 0.2 percent in the first quarter of 2012, following the drop by 0.3 percent in the previous quarter. Traders were frustrated as analysts predicted a 0.1 percent increase. Gross value added grew 0.2 percent in February on an annual basis, while an advance by 0.6 percent was predicted. The worse-than-expected data added incentive for the Bank of England to ease its monetary policy and reduced demand for the pound. Improving sentiment about the situation in Europe was also negative for the UK currency. GBP/USD was down from 1.6142 to 1.6085 and GBP/JPY dropped from 131.23 to 130.57 as of 9:21 GMT today.

The Great Britain pound fell today after a government report showed that the UK economy unexpectedly declined in the first quarter of this year, reducing appeal of the nation’s currency.

Britain’s gross domestic product dropped 0.2 percent in the first quarter of 2012, following the drop by 0.3 percent in the previous quarter. Traders were frustrated as analysts predicted a 0.1 percent increase. Gross value added grew 0.2 percent in February on an annual basis, while an advance by 0.6 percent was predicted. The worse-than-expected data added incentive for the Bank of England to ease its monetary policy and reduced demand for the pound. Improving sentiment about the situation in Europe was also negative for the UK currency.

GBP/USD was down from 1.6142 to 1.6085 and GBP/JPY dropped from 131.23 to 130.57 as of 9:21 GMT today.

US Dollar Mostly Weaker on Improved Sentiment

US dollar is mostly weaker as improved sentiment helps boost other currencies today. Concerns about the global economy, and about Europe, are fading a little bit, and that is helping other currencies against the US dollar. Greenback is not needed as a safe haven, and that is resulting in gains for a few other currencies.

An interest rate decision is expected from the Federal Reserve today. Many expect that the benchmark Fed Funds rate will remain steadily near zero. However, what Forex traders will really be considering is the policy statement from Fed chair Ben Bernanke. Many expect that Bernanke will continue to talk about the softer global economy, but

that he will also present a more hawkish stance on raising interest rates.

While many expect that US interest rates will remain low for quite some time in the future, many expect that the Fed will raise rates before the end of 2013. Many will be listening to Bernanke’s policy statements to get an idea of what’s coming, and figure out what can be expected going forward. Many expect, though, to hear news that is likely to put downward pressure on the US dollar.

At 13:06 GMT EUR/USD is up to 1.3211 from the open at 1.3197. GBP/USD is down to 1.6118 from the open at 1.6145. USD/JPY is down to 81.2925 from the open at 81.3145. USD/CAD is down to 0.9850 from the open at 0.9870.

Canadian Dollar Receives Boost on Better News

Canadian dollar is getting a boost today, thanks to better sentiment in the financial markets. Loonie is heading higher on better earnings news, as well as reduced fears about what’s next for the eurozone.

Loonie is heading higher today, thanks to a jolt from Apple. AAPL earnings are helping market sentiment, as well as adding to a growing list of companies whose Quarter 1 earnings beat expectations. The good news is helping many high beta currencies, including the Canadian dollar.

Also helping sentiment and boosting the loonie is the reduced fear about what’s next for the eurozone. A German bond auction saw weak demand, and many are assuming that’s because investors aren’t looking for safe, low-yielding investments. In the search for better yields, investors are turning to higher beta currencies.

Canadian dollar is higher against the US dollar as safe haven demand fades. Additionally, loonie is up against the UK pound, which is taking a hit on the news that the British economy is moving into recession. Add higher oil prices to the mix, and the Canadian dollar has sufficient support for now.

at 13:46 GMT USD/CAD is lower at 0.9828, down from the open at 0.9882. GBP/CAD is down to 1.5847, which is lower than the open at 1.5935.

Will Bank of Japan Intervene? Investors Unsure, Yen Fluctuates

The Japanese yen fluctuated today, staying nearly flat at present, as Forex market participants were unsure whether the Bank of Japan would intervene to trim yen’s gains.

The crisis in Europe is hurting Japan’s economies in several ways. First, it weakened demand for the nation’s exports from European countries. Second, the crisis boosted demand for the safety of the yen, helping the currency to rebound from the March lows. Analysts say that the BoJ is likely to intervene as the impact of the previous easing measures is waning. On the other hand, central bank’s Governor Masaaki Shirakawa said that monetary policy has limited ability to support an economy. The statement made traders wonder: is the BoJ really keen to intervene?

Another factor that is adding to uncertainty is today’s monetary meeting of the US Federal Reserve. Speculators and market analysts will look into the policy statement after the meeting for signs of future quantitative easing. The members of the Federal Open Market Committee previously were divided in their opinion whether the US economy needs additional stimulus, making it uncertain whether QE3 would happen.

USD/JPY traded at about 81.38 as of 15:09 GMT today, following the advance to 81.56 and the fall to 81.07, while the opening price was 81.30. EUR/JPY was near it opening level of 107.29, while intraday high was 107.65 and the low was 107.12. GBP/JPY stayed flat at 131.23.