Yuan Retreats from Record, Will Its Rally Resume?

The Chinese yuan retreated from yesterday’s record level as the People’s Bank of China lowered the daily fixing, but rose from today’s opening, signaling that the market has confidence in the currency. The PBoC set its reference rate 0.05 percent lower to 6.2578 per dollar. The currency has reached the record high of 6.1923 yesterday. Analysts think that the yuan will likely continue appreciate (if the central bank will not … “Yuan Retreats from Record, Will Its Rally Resume?”

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USD/JPY – Trading the University of Michigan Consumer Sentiment

The University of Michigan Consumer Sentiment surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy, and a reading that is higher than forecast is bullish for the US dollar. Here are all the details, and 5 possible outcomes for USD/JPY. … “USD/JPY – Trading the University of Michigan Consumer Sentiment”

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EURUSD Is Testing 1.3100 Resistance From Where Price Could

EURUSD extended another 200 pips higher since Friday, so now we are even more confident that a low on EURUSD is in place. This was expected because of an ending diagonal, reversal pattern placed in wave 5). The recovery from the 1.2747 low is very strong, so we think it represents only one part of … “EURUSD Is Testing 1.3100 Resistance From Where Price Could”

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British Pound – No Help From Weaker Currency – BOE

The British pound was hit badly during February and also in March. A combination of weak figures from the UK and a sweep of the dollar sent it plunging down. After consolidating above 1.50, can the pair resume the falls? Not so fast. Contrary to many other countries, a weaker currency doesn’t help the economy … “British Pound – No Help From Weaker Currency – BOE”

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Dollar Little Affected by FOMC Minutes, USD/JPY Unable to Reach 100

The US dollar rose a little against the euro today, paying almost no attention to the yesterday’s Federal Open Market Committee minutes. The currency halted its rally versus the Japanese yen, unable to reach the 100 yens per dollar level. The FOMC minutes were released prematurely yesterday as they were accidentally leaked to those who usually receive them by e-mail. The minutes showed that some policy makers favor reduction … “Dollar Little Affected by FOMC Minutes, USD/JPY Unable to Reach 100”

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Australian Dollar Suffers from Unexpectedly Bad Fundamentals

The Australian dollar slumped today as employment data frustrated Forex market participants, being exceptionally bad and leading to speculations about probable interest rate cut by the Reserve Bank of Australia. Analysts have predicted a drop of employment by 6,700 in March, but the actual decrease was much bigger — 36,100. It followed the very robust growth by 74,000 in February. Moreover, the unemployment rate increased from 5.4 percent to 5.6 percent. The Westpac Melbourne … “Australian Dollar Suffers from Unexpectedly Bad Fundamentals”

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Euro Runs Into Difficulties as Cyprus Announces Gold Sale

Euro is lower today, struggling as continued concerns about the eurozone and the fate of the 17-nation currency weigh. The latest difficulty comes from the announcement that Cyprus is planning to sell off some of its gold reserves in order to raise funds. Earlier, Cyprus announced its plan to sell off some of the gold from its reserves. The move is prompting speculation that the Cyprus economy will essentially collapse with this … “Euro Runs Into Difficulties as Cyprus Announces Gold Sale”

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Canadian Dollar Gains against Major Counterparts

Canadian dollar is getting a boost today as Forex traders look for higher yields. Particularly, loonie is benefitting from flows out of Japan. Canadian dollar is being favored right now as Forex traders attempt to capture the benefits of higher-yielding commodity currencies. Against its major counterparts, the loonie is heading higher. Along with the Down Under currencies, the Canadian dollar is seeing some solid progress. The latest … “Canadian Dollar Gains against Major Counterparts”

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Inflation in Norway Slows, Leading to Krone’s Decline

The Norwegian krone declined today as slowing growth of consumer prices fueled speculations that the central bank will perform an interest rate cut to boost inflation. The year-over-year growth of the Consumer Price Index adjusted for tax changes and excluding energy products fell 0.2 percentage point to 0.9 percent in March from February. Analysts have hoped the gauge to stay unchanged. The unexpected slowdown of inflation led to speculations that the Norges Bank will … “Inflation in Norway Slows, Leading to Krone’s Decline”

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Chilean Peso Weaker on Intervention Comments

The Chilean peso weakened today on speculations that the central bank may intervene to trim the rally of the currency that reached the highest level since September 2011 this week. Finance Minister Felipe Larrain said that the Chilean government and the Central Bank of Chile may act in coordination to rein the currency’s gains and an intervention is an option. The bank will conduct a policy meeting tomorrow. There were signs that the central bank was … “Chilean Peso Weaker on Intervention Comments”

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