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."

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Rand Gains on Fed & ECB Stimulus

The rand rose today, following two days of decline, on signs that the US Federal Reserve and the European Central Bank plan to stimulate their economies, supporting inflow of higher-yielding assets.

Janet Yellen, a member of the Federal Open Market Committee, said that the US economy needs stimulus despite signs of recovery:

    I consider a highly accommodative policy stance to be appropriate in present circumstances. But considerable uncertainty surrounds the outlook, and I remain prepared to adjust my policy views in response to incoming information. In particular, further easing actions could be warranted if the recovery proceeds at a slower-than-expected pace, while a significant acceleration in the pace of recovery could call for an earlier beginning to the process of policy firming than the FOMC currently anticipates.

Earlier, Benoit Coeure, an executive board member of the European Central Bank, said the Bank may resume its program of sovereign-debt purchases.

USD/ZAR fell from 8.0000 to 7.9340 as of 12:28 GMT today.

Rand Gains on Fed & ECB Stimulus

The rand rose today, following two days of decline, on signs that the US Federal Reserve and the European Central Bank plan to stimulate their economies, supporting inflow of higher-yielding assets.

Janet Yellen, a member of the Federal Open Market Committee, said that the US economy needs stimulus despite signs of recovery:

    I consider a highly accommodative policy stance to be appropriate in present circumstances. But considerable uncertainty surrounds the outlook, and I remain prepared to adjust my policy views in response to incoming information. In particular, further easing actions could be warranted if the recovery proceeds at a slower-than-expected pace, while a significant acceleration in the pace of recovery could call for an earlier beginning to the process of policy firming than the FOMC currently anticipates.

Earlier, Benoit Coeure, an executive board member of the European Central Bank, said the Bank may resume its program of sovereign-debt purchases.

USD/ZAR fell from 8.0000 to 7.9340 as of 12:28 GMT today.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.