Archive for the ‘Forex News’ Category

The summit of the European Union nations last week set the mood for this week and it wasn’t the optimistic one. The Canadian dollar felt the weight of the negative sentiment, but the week wasn’t altogether bad for Canada’s currency.

The outcome of the summit disappointed market participants. The United Kingdom walked away from the discussions, the agreements are looking too far away in the future without addressing the immediate concerns, the plans should be ratified by all the countries that participated in the meeting and there are already signs of dissension among the politicians. The results of the meeting weren’t disastrous, but they were far from being good.

The Spanish debt auction improved the market sentiment, but the warning by Fitch ratings that France may lose its top credit rating spoiled the traders’ mood. All in all, Europe continued to inflict a downward pressure on the Canadian currency.

The influence of the United States was better, but only barely. The decision of the Federal Reserve not to embark on the next round of quantitative easing, at least for now, can be considered negative for the loonie as it strengthened the US dollar. The positive economic data, including the falling jobless claims, bolstered the market optimism, but the stalling inflation growth made another hit to the sentiment of speculators.

The Canadian dollar behaved in line with the forecast. The currency fell against the greenback and the yen, but advanced against the euro.

USD/CAD jumped from 1.0187 to 1.0377, while CAD/JPY dropped from 76.15 to 74.87 this week. EUR/CAD went down from 1.3632 to 1.3534, while AUD/CAD fell from 1.0401 to 1.0359 after touching the low of 1.0254 during the week.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2011/12/17/loonie-still-feels-disappointment-from-eu-summit/

XE Forex Rates

 
USD
EUR
GBP

1 USD =

1.00000

0.76637

0.64321
Inverse:
1.00000
1.30485
1.55470

1 EUR =

1.30485

1.00000

0.83929
Inverse:
0.76637
1.00000
1.19148

1 GBP =

1.55470

1.19148

1.00000
Inverse:
0.64321
0.83929
1.00000

1 JPY =

0.01289

0.00988

0.00829
Inverse:
77.57000
101.21721
120.59808

1 CAD =

0.96395

0.73874

0.62002
Inverse:
1.03740
1.35365
1.61285

1 AUD =

0.99750

0.76446

0.64160
Inverse:
1.00251
1.30812
1.55860

1 CHF =

1.06809

0.81855

0.68701
Inverse:
0.93625
1.22167
1.45559

1 RUB =

0.03124

0.02394

0.02009
Inverse:
32.01000
41.76825
49.76595

1 CNY =

0.15754

0.12074

0.10133
Inverse:
6.34750
8.28254
9.86846

1 ZAR =

0.11908

0.09126

0.07660
Inverse:
8.39740
10.95735
13.05544

1 MXN =

0.07207

0.05523

0.04636
Inverse:
13.87560
18.10558
21.57240

Article source: http://www.xe.com/news/2011/12/17/2354317.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art3

By Dmitry Solovyov and Robin Paxton

ALMATY, Dec 17 (Reuters) – Wounded victims filled the hospitals of a western Kazakh oil city on Saturday and some oil workers stayed at home, fearing for their safety after Independence Day celebrations turned into the deadliest violence in the ex-Soviet state’s recent history.

At least 10 people were killed when riot police clashed on Friday with a crowd in the city of Zhanaozen, centre of protests by nearly 1,000 oil workers sacked by state-controlled KazMunaiGas Exploration Production.

The head of a local trade union told Reuters sporadic shooting had been heard throughout the night in Zhanaozen, a city of 90,000 around 150 km (95 miles) inland from the Caspian Sea. Power and internet communication had been cut off, he said.

‘The hospitals in Zhanaozen are all full and they are bringing the wounded to Aktau, civilians and policemen alike,’ said Kenzhegali Suyeov, chairman of the Aktau independent union.

‘They have all kinds of wounds, from gunshot wounds to stab wounds and blunt traumas,’ he said, sourcing his information to people who had driven from Zhanaozen to Aktau, the regional capital. All roads into Zhanaozen had been blocked, he said.

Public protests are rare in Kazakhstan, Central Asia’s largest economy and oil producer, where President Nursultan Nazarbayev has ruled for more than 20 years and has overseen massive foreign investment, mainly in oil and gas.

The clashes marred celebrations across the rest of Kazakhstan to mark the 20th anniversary of independence from the Soviet Union and were a shock to a government that has prized stability and economic growth over democratic freedoms.

The clashes began when sacked oil workers and sympathetic citizens stormed a stage erected for an Independence Day party, toppling sound equipment and later setting fire to the city hall and the headquarters of KazMunaiGas EP’s local production unit.

Prosecutor-General Askhat Daulbayev said 10 people had been killed in clashes after law officers were attacked by ‘hooligans’ armed with guns. He did not say who had been killed or how.

Reports on social networking websites said the death toll was much higher than 10 and that police had opened fire. These reports could not be verified independently. New York-based Human Rights Watch said at least some mobile phone and internet access had been shut down in the city.

Interior Minister Kalmukhanbet Kasymov, who flew to Zhanaozen, said around 70 people had been arrested in the city. He said 75 people had been taken to hospital and six police officers were among the injured, Interfax reported.

‘The disorder in Zhanaozen has been suppressed. The situation in the city is calm and nobody is on the square,’ Interfax quoted Kasymov as saying.

‘CARNAGE’

Opposition activist Gulzhan Yergaliyeva was among about 100 people attending a ceremony in the commercial capital Almaty to commemorate Kazakhs killed in clashes with Soviet troops and police in December 1986.

‘Yesterday, exactly 25 years later, the same tragedy was repeated,’ she said.

Thousands of KazMunaiGas EP workers began a strike in May demanding better pay and conditions. The company, calling the strikes illegal, sacked 989 workers and has said production will fall 8.5 percent short of its target this year.

The London-listed company said the Interior Ministry was providing armed security at oil production facilities and some workers had failed to show up for the night and morning shifts due to security concerns. A round-the-clock shift by workers on site was maintaining daily output levels.

KazMunaiGas EP, majority owned by state oil and gas company KazMunaiGas, has said 2,500 people were on strike at the height of the dispute. Representatives of the striking workers have put the maximum number at almost 16,000.

Its Uzenmunaigas subsidiary near Zhanaozen employs 9,000 people, but the strikes were not confined to this unit alone. Workers at the Karazhanbasmunai field, a joint venture with Chinese state-owned company CITIC, also downed tools in May.

‘For seven months, those striking workers were standing in the scorching sun, in the rain, and wind and snow, and the authorities would not start a dialogue with them,’ said Bolat Abilov, a leader of the opposition Social-Democratic Party.

Around 20 protesters broke off from the memorial service and attempted to march to the city headquarters of the ruling Nur Otan political party. Riot police detained around half of them.

KazMunaiGas EP’s London-traded stock closed down 4.0 percent on Friday, versus a decline of only 0.4 percent in the wider oil and gas sector.

(Additional reporting by Mariya Gordeyeva; editing by Angus MacSwan) Keywords: KAZAKHSTAN CLASHES/

(robin.paxton@thomsonreuters.com)

COPYRIGHT

Copyright Thomson Reuters 2011. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2011/12/17/2354321.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art2

XE Forex Rates

 
USD
EUR
GBP

1 USD =

1.00000

0.76637

0.64321
Inverse:
1.00000
1.30485
1.55470

1 EUR =

1.30485

1.00000

0.83929
Inverse:
0.76637
1.00000
1.19148

1 GBP =

1.55470

1.19148

1.00000
Inverse:
0.64321
0.83929
1.00000

1 JPY =

0.01289

0.00988

0.00829
Inverse:
77.57000
101.21721
120.59808

1 CAD =

0.96395

0.73874

0.62002
Inverse:
1.03740
1.35365
1.61285

1 AUD =

0.99750

0.76446

0.64160
Inverse:
1.00251
1.30812
1.55860

1 CHF =

1.06809

0.81855

0.68701
Inverse:
0.93625
1.22167
1.45559

1 RUB =

0.03124

0.02394

0.02009
Inverse:
32.01000
41.76825
49.76595

1 CNY =

0.15754

0.12074

0.10133
Inverse:
6.34750
8.28254
9.86846

1 ZAR =

0.11908

0.09126

0.07660
Inverse:
8.39740
10.95735
13.05544

1 MXN =

0.07207

0.05523

0.04636
Inverse:
13.87560
18.10558
21.57240

Article source: http://www.xe.com/news/2011/12/17/2354325.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art1

The Australian dollar advanced today as the good news from Europe and the positive macroeconomic data from the United States helped to brighten mood of traders, who felt tired from the constant stream of bad news.

The fundamental indicators showed that the US economy continues to recover and that was good for the Australian dollar. The news from Europe was good as the Spanish bond auction was much better than anticipated and that wasn’t bad either. It’s unlikely that the Forex market has seen an end to the bad news, but at least the flow of negative event paused, even if for a short while.

The news was well received by markets and optimism reemerged, even though it was cautious. The MSCI Asia Pacific Index of shares rose 0.4 percent, while the Standard Poor’s 500 Index posted the first session of gains this week yesterday.

Next week, the Reserve Bank of Australia will release the minutes of its last monetary policy meeting. The minutes may provide more insights for the reasons that prompted the central bank to cut its interest rates and suggestions for future decisions.

AUD/USD rose from 0.9920 to 0.9969 and AUD/JPY went higher from 77.22 to 77.65 as of 6:11 GMT today. EUR/AUD slid from 1.3115 to 1.3064.

If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2011/12/16/aussie-feels-good-as-stream-of-bad-news-pauses/

The Indian rupee gained today, following yesterday’s drop to the all-time low, as the nation’s central bank stepped in, announcing measures to curb the volatility on the foreign-exchange market.

The Reserve Bank of India announced that no company, be it domestic or foreign, may use multiple forward contracts for a single overseas transaction. The central bank also said that it’ll reduce the amount of open positions traders are allowed to maintain overnight. The new rule was announced after markets closed yesterday and took effect immediately. The rupee was in danger of further depreciation as the RBI kept the interest rates unchanged on today’s policy meeting.

USD/INR went down from 53.6450 to 52.8750 as of 9:50 GMT today, while earlier it reached the low of 52.2050. The currency pair touched the record high of 54.3050 yesterday.

If you have any questions, comments or opinions regarding the Indian Rupee,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2011/12/16/rupee-rebounds-from-record-low/

The Canadian dollar closed below the opening level today as Fitch Ratings came in and knocked down the positive market sentiment by signaling that France’s top credit ranking may be in danger.

Fitch maintained top AAA sovereign rating of France, but changed the outlook from stable to negative. The rating agency explained its reasoning:

The Negative Outlook is prompted by the heightened risk of contingent liabilities to the French state arising from the worsening economic and financial situation across the Eurozone, as reflected in the Rating Watch Negative placed on the sovereign ratings of several Euro Area Member States (EAMS) on 16 December 2011. As Fitch commented in its report on 23 November, ‘French Public Finances’, the fiscal space to absorb further adverse shocks without undermining its ‘AAA’ status has largely been exhausted.

The United States also disappointed markets as its inflation wasn’t growing in November. That’s better than the October decline, but economists hoped for some increase, even if by just 0.1 percent.

The Canadian currency was gradually rising at the beginning of the trading session, but the negative news resulted in a sharp decline.

USD/CAD rose from 1.0348 to close at 1.0337 after falling intraday to 1.0296. EUR/CAD closed at 1.3534, rising from the opening rate of 1.3466 and the daily low of 1.3424. CAD/JPY was at 74.87 as markets closed, while it opened at 75.18 and touched the high of 75.54 during the session.

If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.

Article source: http://www.topforexnews.com/2011/12/16/loonie-drops-as-fitch-spoils-market-sentiment/

Dec 16 (Reuters) – Crown Castle International Corp:

* Moody’s places all corporate ratings of Crown Castle on review for possible

downgrade upon acquisition announcement

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The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2011/12/16/2354037.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art3

Dec 16 (Reuters) – Discover Financial Services:

* Unit terminated an unsecured credit agreement dated as of June 6, 2007

-SEC filing

* Says credit agreement provided for a revolving credit commitment of up to

$2.4 billion

* Says credit agreement was scheduled to expire under its terms on may 6, 2012.

* Co,Discover Bank terminated the facility due to the availability of other

sources of contingent liquidity

* Says company was permitted to borrow up to 30% of the revolving credit

commitment

((Bangalore Equities Newsroom; +91 80 4135 5800; within U.S. +1 646 223 8780))

(For more news, please click here)

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The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2011/12/16/2354033.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art2

(The following statement was released by the rating agency)

— U.S. yellow page directory publisher SuperMedia completed its first repurchase of term debt after amending its credit agreement, which permits the company flexibility to repurchase term debt at prices below face value.

— The company utilized $117 million of cash to repurchase about $235 million of its term loan at approximately 50% of par.

— We are lowering our corporate credit rating on SuperMedia to ‘SD’ from ‘CC’, and lowering our issue-level rating on the company’s debt to ‘D’ from ‘C’.

— We believe the company will continue to repurchase debt over the intermediate term as permitted by the amended credit agreement.

Dec 16 – Standard Poor’s Ratings Services today lowered its corporate credit rating on Dallas-based SuperMedia Inc. to ‘SD’ (selective default) from ‘CC’.

In addition, we lowered our issue-level rating on the company’s secured debt to ‘D’ from ‘C’.

The downgrade reflects the application of Standard Poor’s criteria on subpar repurchase transactions, which we view as tantamount to a default, to SuperMedia’s recent subpar debt repurchase. Moreover, the company’s Nov. 8, 2011 amendment allows for ongoing subpar repurchases of its term debt until 2014 as long as certain conditions are met. The term loan is trading at a significant discount to par value, which provides the company an economic incentive to pursue further subpar buybacks. We believe that these circumstances suggest a high probability of future subpar buybacks.

We view the company’s debt leverage and poor operating outlook as indications of financial distress. We see significant risks of continued structural and cyclical declines affecting the print directory sector, as well as increased competition as small business advertising expands across a greater number of online marketing channels.

Debt to EBITDA, adjusted for operating leases and postretirement obligations, was 3.9x for the 12 months ended Sept. 30, 2011, and EBITDA coverage of interest expense was about 2.4x over the same period. Debt maturities are minimal over the next several years. The term loan matures on Dec. 31, 2015, and has no required amortization, aside from a cash flow sweep of 67.5% of excess cash flow. The company can use the remaining 32.5% of excess cash flow to repurchase debt below par. Despite possible future buybacks, we believe there is significant risk surrounding the company’s ability to refinance the full face value of its 2015 maturing debt without a turnaround in the company’s revenue.

On an adjusted pro forma non-GAAP basis (which eliminates the impact from fresh-start accounting subsequent to the company’s emergence from bankruptcy), revenues dropped 18%, while EBITDA fell 8.7% in the three months ended Sept. 30, 2011. Adjusting for a one-time tax benefit in 2010, EBITDA would have increased 5%. Under our base case scenario, we expect revenue and EBITDA over the next 12 months will show, respectively, mid- and low-teen percentage drops, reflecting ongoing advertising declines due to a continued shift toward fast and efficient digital platforms.

We will reassess the company’s business outlook over the intermediate term. Due to the modest amount of debt tendered, the post-tender capital structure remains virtually unchanged. Our reassessment will include the possibility of further subpar repurchases.

RELATED CRITERIA AND RESEARCH

— Rating Implications Of Exchange Offers And Similar Restructurings, May 12, 2009

— 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard Poor’s public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.

Primary Credit Analyst: Chris Valentine, New York (1) 212-438-1434;

chris_valentine@standardandpoors.com Secondary Contact: Andy Liu, Chicago (1) 312-233-7052;

andy_liu@standardandpoors.com

(New York Ratings Team)

(e-mail: pam.niimi@reuters.com; Reuters Messaging: pam.niimi.reuters.com@reuters.net; Tel:1-646-223-6330;)

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Copyright Thomson Reuters 2011. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

Article source: http://www.xe.com/news/2011/12/16/2354029.htm?utm_source=RSS&utm_medium=TL&utm_content=NOGEO&utm_campaign=News_RSS_Art1