Virgin's ‘grin and tonic’ Branson ice cubes

The ice cubes have been created using the exact measurements of Sir Richard’s head

The British-based Virgin Atlantic is giving passengers some extended face time with Richard Branson, the carrier’s billionaire founder, to celebrate the launch of the airline’s newly redesigned upper-class section.

Euro Sinks Under Political Weight

Euro is sinking right now, forced down by the political situation in the eurozone. Concerns about what’s next for the 17-nation currency zone are dragging down the euro as Forex traders look for safety, and choosing the US dollar and the Japanese yen instead.

Euro is struggling as the political situation in the eurozone deteriorates. For the most part, the focus is on Greece. The country has been unable to form a new government, and there are already rumblings of another election — and the possibility is being raised that Greece will withdraw from the currency bloc. Even if a government is eventually formed, the worry is that the new leaders won’t adhere to the austerity measures agreed to for the Greek bailout.

AUD Drops as Trade Balance Deficit Unexpectedly High

The Australian dollar dropped today, trading near this year’s lows, as a government report showed that the nation’s trade balance deficit in March was bigger than estimated by specialists.

Australia’s trade balance registered a deficit of A$1.587 billion in March, compared to experts’ forecast of A$1.380 billion. The February shortage was revised from A$0.480 billion to A$0.754 billion. The poor data made traders afraid that Australia’s economic growth is losing steam.

Taiwan Dollar Fluctuates, Will Central Bank Allow Currency Appreciate?

The Taiwan dollar fluctuated today as the impact of the general negative sentiment on the Forex market battled with the influence of speculation that the nation’s central bank will allow the currency appreciate.

Analysts speculate that Taiwan’s central bank will tolerate gains of the currency to stem growth of inflation even as the strong currency puts pressure on exporters. Inflation accelerated to 1.44 percent in April from a year ago after consumer prices increased 1.25 percent in March. At the same time, exports declined 6.4 percent last month from a year earlier, compared with the 3.2 percent drop in the month before.

Japanese Yen Strengthens on Risk Aversion

Risk aversion is rising right now, and the Japanese yen is gaining across the board because of it. Concerns about Europe continue to dominate the markets, and Forex traders are looking for stability and safe haven. The Japanese yen offers that, and is quite popular right now.

The biggest concern right now is Greece. Right now, the party Syriza is trying to form a government, but that party (known for its anti-bailout sentiment and opposition to austerity measures) is having difficulty forming a government. Others will be given three days to form a government, and if no one can, elections will be called again. In any case, there are concerns that the Greek government can’t pull it off, and that Greece will withdraw from the monetary union by the end of the year.

Greece, Spain Weigh on Euro

Euro is down across the board today, falling as concerns about what is happening in the eurozone weigh on financial markets around the world. The financial and political turmoil in the eurozone are causing trouble, and the euro is below the 1.30 level against the US dollar as a result.

Thanks to the political turmoil in the eurozone, financial markets are in upheaval today. While the eurozone will take some getting used to Francois Hollande, the new French president, there are more immediate issues pressing right now. It appears that Syriza will be unable to form a government in Greece. Next, tries to go to PASOK and then to the President. If none of these can form a government, new elections will be held. The uncertainty regarding Greece, and whether or not it will live up to its austerity agreements, has increased quite a bit. Additionally, there is speculation that Greece will leave the currency union.

Negative Outlook for Australian Fundamentals Hurt Aussie

The Australian dollar dropped, reaching the lowest level against its US counterpart this year, as Forex market participants anticipate a set of poor fundamental data from the South Pacific country today.
Australian employment is expected to fall by 4,800 in April, following the increase by 44,000 in preceding month. Analysts predict that the unemployment rate will rise from 5.2 percent to 5.3 percent. The trade balance deficit widened from A$46.0 billion in February to A$49.8 billion in March, according to estimates before the government report.

US Dollar Pulls Back as Risk Appetite Makes an Appearance

After a few days of gloom over Europe, risk appetite is making an appearance in the financial markets. US dollar is pulling back from recent highs against the euro and the pound, and heading lower as Forex traders look for a little extra yield, and as a degree of optimism is seen as moves are made to shore up Spain.

US dollar was headed higher today, moving up as news about Great Britain’s economy disappointed. However, the Bank of England put quantitative easing on hold, and it appears that the body is prepared to maintain that position. So, even with the British economy in recession, the pound is getting a slight boost against the US dollar.

Euro Finds Support in Forex Trading

Euro is finding some support in Forex trading today, heading a little bit higher. Even though there are still concerns about what is happening in Europe, traders are looking for a little bit of respite from the risk aversion and gloom. So, the euro is a little bit higher right now, and other high beta currencies are seeing some success as well.

Euro is slightly higher against the US dollar right now. Spain has all but nationalized its fourth-largest bank, and is taking aggressive steps to shore up its financial sector. While this may not solve Spain’s problems, it’s at least an attempt, and one that many are viewing favorably. Additionally, UK pound, another high beta currency, is seeing success against the US dollar. The Bank of England is keeping quantitative easing on hold, and that means that the pound won’t be intentionally weakened right now.

Euro is still higher against the pound today, and is seeing modest gains against its major counterparts. However, gains are limited, and the euro is rangebound, due largely because of the uncertainty that remains. A Greek government has yet to be formed, and questions remain about how the eurozone will tackle stimulus. There is plenty of room for the euro to fall to the US dollar in the future.

At 14:01 GMT EUR/USD is up to 1.2971 from the open at 1.2930. EUR/GBP is up to 0.8018 from the open at 0.8017. EUR/JPY is up to 103.6595 from the open at 102.9720.

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

Bank of England Avoids Quantitative Easing, Pound Profits

The Bank of England refrained from easing the monetary policy at today’s meeting, causing the Great Britain pound to climb. The United Kingdom still suffers from the double-dip recession and it is questionable whether the currency could maintain its gains.
The BoE held its key interest rate at 0.5 percent and the asset purchase facility at £325 billion. The bank’s decision was likely caused by fears that excessive easing may lead to a surge of inflation. The BoE maintains its main rate unchanged since March 2009. The central bank also initiated the bond purchase program in March 2009 and expanded the program last time in February 2012.

Aussie Rallies on Surprisingly Good Employment Data

Australia’s employment data made a pleasant surprise for those Forex traders that were bullish on the Australian dollar as employment unexpectedly grew and the unemployment rate fell.

The number of employed persons in Australia rose by 15,500 in April from March, while analysts expected a drop by 4,800. The unemployment rate slipped from 5.2 percent to 4.9 percent, even though an increase to 5.3 percent was predicted. The Australian currency is still pressed by negative outlook for Europe and uncertain prospects for China, but the domestic data was simply too good and pushed the Aussie up, at least for now.

Loonie Looks Stronger, Employment Data May Weaken Currency

The Canadian dollar gained today as Forex traders showed risk appetite on signs that the situation in Greece is improving and some positive data from the United States. The gains of the currency were limited as tomorrow’s employment data is expected to be rather poor.
European politicians confirmed that Greece is receiving a next round of bailout. There are speculations that the most-indebted European country made progress in forming a new government. US federal budged had its first surplus since 2008. Most news was good today and that translated

India’s Central Bank Supports Rupee

The Indian rupee rallied today as the Reserve Bank of India took measures to support the currency that has been performing very badly. The central bank decrease the amount of foreign currency companies may hold.

The RBI announced that companies may keep only 50 percent of their profits in foreign currency, down from 100 percent, while other half should be exchanged to the domestic currency. This measure should bolster central bank’s dollar reserves. The currency definitely needs support as it has fallen 4.8 percent this quarter

Indonesia Rupiah Advances as Intervention Anticipated

The Indonesia rupiah advanced today on speculation that the nation’s central bank will intervene, buying the currency, to reduce currency volatility and slow growth of consumer prices.

Analysts speculate that the Bank Indonesia may boost its interest rates after keeping them unchanged on the last policy meeting. The bank may do so to keep inflation in check after it jumped the highest level in seven months. Indonesia’s central bank may slow inflation growth and lower volatility by removing surplus funds from the financial system.

Euro Falls as Greece Continues to Wrangle

Greek political leaders continue to wrangle in an effort to form a government, and that is weighing on the euro, especially against the US dollar. Yesterday, the euro showed some spunk, and riskier assets received a bit of a boost. Today, though, risk aversion is back in full force over Greece, and over the latest news from JP Morgan Chase.

Canadian Dollar Gets Boost on Employment Gains

Canadian dollar is getting a boost today against the US dollar as employment news turns out more positive than expected. Loonie is higher against its US counterpart on the good news, even as risk aversion in general weighs on other high beta currencies.

Canadian dollar is heading higher today, thanks to a strong employment report. According to Statistics Canada, employment rose to 58,200 in April. This came on the heels of a jump of 82,300 in March. The good news is supporting the idea of a relatively strong Canadian economy — especially when compared against the US economy.

Ruble Follows Oil Price in Decline, Rebounds

The Russian ruble fell today, before rebounding later, as prices for crude oil, the chief export of the country, declined, resulting in a drop of the trade balance surplus.
Crude oil prices fell 0.2 percent to $96.86 per barrel in New York today, heading for a second weekly drop. The prices were under pressure from swelling US stockpiles and the European credit crisis. Russia’s trade surplus shrank to $19.4 billion in March from $20.3 billion in February. Analysts predict that the ruble is likely to fall against the dollar next week.

Pound Drops as Consumer Confidence Worsens

The Great Britain pound declined after a report showed that confidence of Britons worsened last month, spurring speculation that the Bank of England will be forced to perform quantitative easing.

Nationwide Building Society reported that the Consumer Confidence Index fell from 53 in March to 44 in April. Estimates before the report predicted the index to remain stable at 52. Robert Gardner, Nationwide’s Chief Economist, said:

It is not surprising that confidence remains fragile, with the economy shrinking over the past six months and labour market conditions still weak.

Australian Dollar Falls as China Signals About Slowing Growth

The Australian dollar slipped, falling to the lowest level this year against its US peer, as negative macroeconomic data hurt prospects for Australia’s exports and general pessimistic sentiment on the Forex market reduced appeal of growth-related currencies.

GBP Falls vs. USD & JPY, Gains vs. EUR Over This Week

The Great Britain pound fell against the US dollar and the Japanese yen this week as growing concerns about the health of the UK economy reduced appeal of the currency. The sterling is still perceived as refuge from Europe’s crisis, therefore it gained versus the euro.

Britain’s economy has entered a recession, significantly hurting prospects for the sterling. The Bank of England refrained from expanding stimulus during its last policy meeting, but most economists agree that the country needs quantitative easing. The pound is supported by its status of a safe haven, but such role looks tenuous considering the economic condition of Britain. Anyway, the