The dust is still settling after ECB President Mario Draghi shook up the markets this morning at this press conference following the ECB monthly meeting. At that meeting, the ECB decided to lower interest rates by 25 bps to 0.50%. Following that announcement at 7:45 AM EST, the EUR actually began to appreciate from the … “Are negative interest rates really possible? Yes is the answer”
Month: May 2013
GBPUSD Trying To Form A Bearish Reversal At 1.5600
GBPUSD has been trading nicely higher since last week when we have turned bullish after the break through the upper side of a corrective channel that put wave C) in action. This wave C) could be a final leg of a double zig-zag from March low. If that is the case then the top could … “GBPUSD Trying To Form A Bearish Reversal At 1.5600”
Euro Drops Following ECB Decision and Draghi Comments
Euro is heading lower today, dropping on the latest comments from ECB policymakers. The lower rate was expected by many, but what wasn’t expected was an acceptance of possibly negative rates. Today, the European Central Bank announced its latest rate decision. The ECB decided to cut its rate from 0.75 per cent to 0.50 per cent. This was expected, and the move did little to affect the euro in trading. … “Euro Drops Following ECB Decision and Draghi Comments”
Yen Mostly Lower after BOJ Minutes
Yen is mostly lower today against its major counterparts following the latest release of BOJ minutes. Even though there are some concerns about the aggressive monetary easing policy being pursued by the central bank, most of the policymakers are expressing confidence in the bank’s decision. Recently, the Bank of Japan announced a plan to double the monetary base in the next two years and aim for an inflation target of two per cent. The move is … “Yen Mostly Lower after BOJ Minutes”
ECB cuts by 0.25 to 0.50%
Expectations ranged between no cut and a 50bp cut, with a 25bp cut having the highest chances. EURUSD traded lower before the release, at 1.3160.
South Korean Won Retreats Even amid Favorable Fundamentals
The South Korean won retreated today after touching the highest level since March. The earlier rally occurred after South Korea’s trade balance posted surplus and manufacturing expanded last month. South Korea’s exports grew 0.4 percent in April from a year ago, exceeding imports for the 15th consecutive month. The country’s manufacturing Purchasing Managers’ Index rose to 52.6 last month from 52.0 in March. The US macroeconomic data … “South Korean Won Retreats Even amid Favorable Fundamentals”
Pound Firm as Construction PMI Beats Expectations
The Great Britain pound remained strong today as data showed that the construction sector shrank last month less than was predicted by analysts, giving hope that the UK economy is recovering. The Markit/CIPS UK Construction PMI rose from 47.2 in March to 49.4 in April, beating the forecast of 48.1. As with manufacturing, the report was not strictly good as it still pointed on decline of the sector, but at least it was … “Pound Firm as Construction PMI Beats Expectations”
EUR/USD: Trading the US Non-Farm Employment Change May 2013
US Non-Farm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for EUR/USD. Published on Friday at 13:30 GMT. Indicator Background … “EUR/USD: Trading the US Non-Farm Employment Change May 2013”
Aussie Is Not Happy with Economic News
The Australian dollar fell today as signs of global economic slowdown made investors prefer safety to higher yield, resulting in lower demand for the currency. News from the United States was bad, hurting riskier currencies. Data from China, the major trading partner of Australia, was not encouraging either. All in all, traders were on the defensive, leading to decline of stocks and commodities as well as currencies related to economic growth. Domestic fundamentals were … “Aussie Is Not Happy with Economic News”
Mexican Peso Suffers from Poor US Data
The Mexican peso fell as poor macroeconomic data from the United States led to concerns about Mexico’s economic growth and speculations that policy makers may cut interest rates. The currency gained versus the euro, paring the earlier losses. Virtually all US fundamental reports on the first trading day of May were bad. Employment, manufacturing and construction data disappointed market participants, making them reluctant to buy risky currencies. The peso … “Mexican Peso Suffers from Poor US Data”