Brazilian Real Trades at Record Low on Obama’s Speech

The Brazilian currency was affected by a new wave of risk aversion after U.S. President Barack Obama proposed new regulations for financial instituitions in the country, raising concerns among traders that avoided emerging markets this Thursday.

Emerging market currencies like the real ranked among the worst performers today after a White House statement indicating that banks in the U.S. are likely to follow a tighter police regarding its financial transactions and investments, declining risk appetite and forcing traders to opt for safer bets in currency markets.

USD/BRL closed today at 1.8025, the lowest rate in 4 months from an opening rate of 1.7895.

If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.

Loonie Starts Week Bearish on Copper, Stocks

The Canadian currency didn’t manage to continue its last week rally as stocks and commodities markets had a less optimistic performance this Monday, setting the loonie down versus its U.S. counterpart and the Japanese yen.

As stocks operated near neutrality and metallic commodities, like the copper, went down today, The Canadian currency retreated from its highest level in February versus lower-yielding currencies, as the market sentiment in Europe, once again affected by the region’s budget crisis, is declining appetite for riskier assets in North American trading markets in the beginning of this week.

USD/CAD traded at 1.0424 as of 16:22 GMT from an opening rate of 1.0384 yesterday. CAD/JPY traded at 87.42 from 88.05.

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Yen Declines on EU-Greece Rescue Plan

The yen was the most affected currency by a new wave of optimism started by EU officials statements suggesting that the bloc will help Greece financially to solve its public debt issues, losing specially versus higher-yielding currencies and the euro.

The Japanese currency started this Wednesday continuing its losing trend initiated yesterday by renewed optimism that Greece fiscal crisis will end sooner than expected as the European Union signaled its intentions to inject money in the country’s accounts, as long as it follows measures necessary to tighten its massive public deficit.

AUD/JPY traded at 78.73 as of 02:23 AM from a previous intraday rate of 77.30.

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Canadian Dollar Falls Despite Positive GDP

The Canadian dollar ended another week declining versus its U.S. counterpart and lower-yielding currencies despite a report showing that the nation’s economy grew for another month, as the U.S. GDP report had more impact in markets globally.

Even if a report showed that Canada’s gross domestic product rose for a third consecutive month in November 2009, the loonie declined versus the greenback as a report indicated that the U.S. economy expanded more than forecasts suggested in the last quarter of 2009, making the U.S. dollar to touch the highest level in 2010 versus its Canadian counterpart.

USD/CAD traded at 1.0697 as of 21:37 GMT from a previous intraday rate of 1.0654.

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Dollar Advances on Fed Hawkish Tone

The U.S. dollar advanced versus several key currencies after a Federal Reserve statement announcing that a number of stimulus to help the economic recovery will be lifted, as according to central bankers, the economy is already showing enough evidences of improvements to allow these measures.

The greenback gained after a Federal Reserve monetary policy statement published today showed optimism with hawkish attitudes from central bank officials, since several measures used to revive the U.S. economy from the worst recession in decades will expire and not be extended, allowing the dollar to touch the highest level in 6 months versus the euro.

EUR/USD traded at 1.4021 from a previous intraday rate of 1.4077.

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Brazil Real Remains Near 2010 Record Low

The Brazilian real continued to be influenced by bearish equities and commodities markets and did not manage to pare gains after falling during the most of the time last week.

Brazil is one of the main metallic commodity exporters in the world, and uncertainty brought by U.S. and Chinese statements regarding new financial regulations for loans in both countries still impacted market sentiment today, decreasing demand for raw materials and riskier assets globally, forcing the real to trade near the lowest price in 2010 reached last Friday.

USD/BRL closed today at 1.8240 from an opening rate of 1.8155.

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Yen More Attractive on Renewed Risk Aversion

The yen ended the week with a very positive performance versus most of the main traded currencies as a new wave of risk aversion brought traders to purchase assets in the Asian country, since the yen is well-known for being the safest refuge currency for times of uncertainty in trading markets.

The yen climbed significantly this week versus the U.S. dollar after a White House statement proposing new regulations for banking institutions in the country fueled speculations that investments will decrease in the U.S., forcing investors to abandondollar-priced assets to search for safety in Japan. The euro remained unattractive allowing the yen to post a weekly advance as Greece’s financial crisis continue to raise concerns among traders regarding the Eurozone economic future. The pound also dropped versus the yen despite inflation positive figures, as retail sales unexpectedly fell in the end of the week.

Risk aversion is coming from different directions, China and U.S. statements regarding financial restrictions had a huge impact in market sentiments, that’s behind yen’s rally this week. If new tightening policies become a rule globally, the yen will certainly rally further.

USD/JPY closed the week at 89.80 from as high as 91.86 on Thursday. EUR/JPY closed at 126.91 from as high as 129.48 on Thursday.

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Pound Ends Week Falling on Retail Sales

The U.K. currency retreated from a previous advance versus the euro as attractiveness for the currency declined after a report showed worse than expected numbers for monthly retail sales in Britain before the end of this week’s session.

The pound lost versus several currencies including the U.S. dollar and the euro after a retail sales report showed an increase of 0.3 percent in December, much below what forecasts suggested on their majority, expecting a growth beyond 1 percent. Even if retail sales forced the pound down, it remains a winner versus the euro this month with almost 2 percent of gains versus the European single currency.

EUR/GBP closed the week at 0.8767 from 0.8694 on Thursday.

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Canadian Dollar Down on China, U.S. Statements

The Canadian dollar was one of the most affected currencies by a new wave of risk aversion today as the country’s currency has a strong correlation with stocks and commodities markets, which fell significantly on statements regarding financial restrictions to be imposed by China and the United States.

After a Chinese statement suggesting that economic growth will be controlled in the nation and a White House statement proposing stricter policies for banks in the country, the Canadian dollar fell drastically, as stocks and commodities, markets with high influence on the loonie’s rates, declined as risk aversion rose.

USD/CAD traded at 1.0514 as of 00:53 GMT from a previous rate of 1.0447 in the intraday comparison.

If you want to comment on the Canadian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.

Brazilian Real Trades at Record Low on Obama’s Speech

The Brazilian currency was affected by a new wave of risk aversion after U.S. President Barack Obama proposed new regulations for financial instituitions in the country, raising concerns among traders that avoided emerging markets this Thursday.

Emerging market currencies like the real ranked among the worst performers today after a White House statement indicating that banks in the U.S. are likely to follow a tighter police regarding its financial transactions and investments, declining risk appetite and forcing traders to opt for safer bets in currency markets.

USD/BRL closed today at 1.8025, the lowest rate in 4 months from an opening rate of 1.7895.

If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below.