Archive for January, 2015

The Australian dollar has been weakening as a result of falling oil prices. “Jawboning” or the false market commentary has also been blamed to be partially responsible for AUD weakening.

The currency is under pressure with predications that the Aussie Reserve Bank will lower interest rates in response to other central bank decreases and lesser inflation expectations.

The cuts are contagious – currencies are weakened. Central banks in Mexico and South Africa are to release policy decisions and Mexico’s central bank is keeping policy rates on hold.
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It has recently been announced that the ECB will take an unprecedented step and inject no less than €1.1 trillion euros into the European economy.

This quantitative easing measure intends to purchase €60 billion euros worth of bonds each month until (at least) September 2016.

This action is seen as being no great surprise to many online Forex investors who have stated that a stagnant European economy required an additional economic stimulus.

Obviously, this will have a rather dramatic effect upon the value of the euro in relation to other currencies.
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