USD moved sharply lower yesterday, mostly against all of the major pairs including the JPY. This came despite a higher stock market in the second part of the US session. The only pair where USD is still looking bullish at the moment is AUD/USD. We have seen a sharp reversal lower on that pair during … “EUR/USD, AUD/USD, GBP/USD Intraday Elliott Wave Review”
Month: June 2013
Won Falls, Still Heads to Weekly Gain
The South Korean won was heading to the biggest weekly advance among Asian currencies since September as speculations that the US Federal Reserve will not withdraw stimulus were driving the dollar down. The currency retreated today. Worse-than-expected US macroeconomic data suggested that it is too early to remove Fed’s monetary accommodation. This allowed the Bloomberg-JPMorgan Asia Dollar Index of regional currencies to advance 0.5 percent to 117.27 … “Won Falls, Still Heads to Weekly Gain”
Yen Gains as Aso Says No Intervention Needed
The Japanese yen gained today, advancing for the third straight session against the US dollar and the euro, as Japanese Finance Minister Taro Aso said that there is no immediate necessity to weaken the currency. Many traders were counting on Japanese policy makers to push the yen down as they were promising earlier. Now Forex market participants are felt betrayed and are trying to get out of short positions. Aso’s comments … “Yen Gains as Aso Says No Intervention Needed”
CAD Rallies as Poloz Reiterates Interest Rate Hike Probable
The Canadian dollar rallied versus its US counterpart today as the new chief of the central bank said that an interest rate hike is probable sometime in the future. The currency retreated against some other majors, including the euro. Stephen Poloz replaced Mark Carney, who is going to lead the Bank of England, as Bank of Canada Governor. Poloz reiterated in his first comments Carney’s opinion that higher borrowing costs may … “CAD Rallies as Poloz Reiterates Interest Rate Hike Probable”
Rand Gains as Interest Rate Cut Unlikely
The South African rand appreciated today as the central bank indicated that there is a limited room for an interest rate cut due to inflation risks. Consumer inflation has been above the 4.5 percent mid-point of the central bankâs target range since June 2011. South African Reserve Bank Governor Gill Marcus said that the bank has little scope to stimulate the economy due to rising consumer prices. The central bank … “Rand Gains as Interest Rate Cut Unlikely”
US Dollar Falls on European Policy Decisions
US dollar is falling today, losing ground against its European counterparts on the latest policy announcements. News that the ECB and the BOE are holding steady right now is sending the US dollar lower as expectations of continued easing weigh. US dollar appears to be heading for more weakness as Forex traders compare the situation in the United States to the situation in Europe. After days of speculation that the Federal Reserve would decide … “US Dollar Falls on European Policy Decisions”
Central banks close to unleashing Tsunami of volatility in
Poor communication and confusing messages from central banks risk unleashing a Tsunami of volatility in underlying asset markets related to high-octane quantitative easing programmes, which could quickly spill over into exchange rates. Most asset classes, particularly equities, have ceased to price fundamentals properly due to torrents of liquidity from central banks, which means they are … “Central banks close to unleashing Tsunami of volatility in”
ECB Makes Euro Stronger
The euro surged today after the European Central Bank left interest rates unchanged and voiced optimism about future economic developments in the eurozone. The ECB maintained rates unchanged, including the benchmark minimum bid rate which stayed at 0.5 percent. The central bank said: Recent developments in economic sentiment survey data have shown some improvement from low levels. The bank also noted: Progress has been made since … “ECB Makes Euro Stronger”
Aussie Falls on Weak GDP
Australian dollar is down across the board today, falling as weak GDP data weighs. Aussie is down against all of its major counterparts as concerns about what’s next for the Down Under economy, as well as general risk aversion, send the currency lower. The latest GDP figures for Australia are in, and it shows that annual growth has slowed to 2.5 per cent. This represents the weakest growth in two … “Aussie Falls on Weak GDP”
Pound Advances as BoE Refrains from Additional Stimulus
The Great Britain pound strengthened today after the Bank of England left its monetary policy unchanged, refraining from additional stimulus. The BoE maintained its already extremely accommodative policy stable. The main interest rate stayed at 0.5 percent. The size of asset purchases remained at £375 billion. Such decision was widely expected by market participants. The recent macroeconomic data suggested that the economy is improving, making more stimulating … “Pound Advances as BoE Refrains from Additional Stimulus”