British Retail Sales is considered one of the most important indicator of consumer spending. The indicator’s release in the first week of each month provides analysts and traders with an early look at consumer spending. A reading that is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes … “GBP/USD: Trading the British Retail Sales Jul 2013”
Month: July 2013
Canadian Dollar Gains on QE Reduction Speculations, Backs Off
The Canadian dollar rallied against its US peer yesterday on speculations that the Federal Reserve is going to tamper stimulus, but retreated a little today. The currency erased losses versus the Japanese yen, while staying little changed against the euro. This week, the loonie, as well as other currencies, depends for the most part on guesses about what Ben Bernanke will say, not domestic fundamentals. The currency profited from talks … “Canadian Dollar Gains on QE Reduction Speculations, Backs Off”
Dollar Drops Ahead of Bernanke’s Testimony
The US dollar dropped today ahead of this week’s testimony of Federal Reserve Chairman Ben Bernanke. Traders yet again speculate about a reduction of quantitative easing, but they are less certain that such reduction will happen soon and this drove the greenback lower. Bernanke’s speech to the Congress is the major event this week and everybody’s attention is focused on it. The Chairman will start the testimony tomorrow and will … “Dollar Drops Ahead of Bernanke’s Testimony”
Euro Gains on Dollar Weakness
Euro is gaining today, mainly thanks to dollar weakness. With disappointing economic news out of Germany, there’s not much to hold the euro up right now, so the fact that the US dollar is struggling is helping the 17-nation currency. The latest economic data out of the eurozone shows that the ZEW is down, and that inflation throughout the eurozone indicates subdued price pressures. With signs that the economy … “Euro Gains on Dollar Weakness”
UK Pound Lower as BOE Policy Expected to Remain Accommodative
UK pound is down against its major counterparts today, dropping as expectations that the Bank of England will keep its monetary policy weigh on the currency. The latest inflation data out of the United Kingdom indicates that the economy isn’t growing as fast as some would like, and that means that there is likely to be more interest in keeping monetary policy accommodative and asset purchase programs in place. The Office for National … “UK Pound Lower as BOE Policy Expected to Remain Accommodative”
RBI Raises Rates, Rupee Stronger
The Indian rupee advanced today after the nation’s central bank raised interest rates yesterday in order to address the exchange rate volatility and to support the weakening currency. The Reserve Bank of India increased its main interest rate from 8.25 percent to 10.25 percent yesterday. The bank explained the background for such decision and “the need to restore stability to the foreign exchange market”: The market perception of likely tapering of US Quantitative Easing has triggered outflows … “RBI Raises Rates, Rupee Stronger”
Aussie Jumps After RBA Minutes
The Australian dollar jumped today after the Reserve Bank of Australia released the minutes of its last policy meeting, suggesting that the current level of interest rates is appropriate for the time being. The minutes said: Given the exchange rate adjustment that was occurring, and with the substantial degree of monetary stimulus already in place, members assessed the current stance of policy to be appropriate for the time being. At the same time, the central bank noted that … “Aussie Jumps After RBA Minutes”
EUR/USD Could Retest 1.3220 – Elliott Wave Forecast
EURUSD reversed sharply from the lows last week after Bernanke’s speech. The pair moved straight up almost 400 pips in just two days. However, the larger trend for euro/dollar is still down so we are observing a bearish wave count as far as a 1.3415 high in place. We are tracking a corrective rally that … “EUR/USD Could Retest 1.3220 – Elliott Wave Forecast”
Yen Falls on Outlook for Fed & BoJ Policies
The Japanese yen fell today on speculations that the Federal Reserve may trim its stimulating program, while it is not likely that the Bank of Japan will reduce its asset purchases in the foreseeable future. Last week’s comments of Fed Chairman Ben Bernanke hushed talks about a reduction of quantitative easing, but did not stop them altogether. Bernanke testifies this week too and market participants wait … “Yen Falls on Outlook for Fed & BoJ Policies”
Canadian Dollar Falls as US Retail Sales Below Forecast
The Canadian dollar declined today, trimming last week’s huge gains against the greenback, as US retail sales missed forecast, worsening prospects for Canadian exports. Retail sales rose 0.4 percent in June, slower than the analysts’ estimate of 0.7 percent. The core components of the sales were unchanged instead of expanding 0.5 percent as was predicted. The United States is the most important trading partner of Canada. The Canadian dollar has rallied … “Canadian Dollar Falls as US Retail Sales Below Forecast”