The US dollar jumped against the euro today on speculations that the Federal Reserve may perform quantitative easing tampering rather soon. The currency was flat versus the Great Britain pound and fell against the Japanese yen. Market participants speculate that the Fed may slow the pace of its asset purchases as early as January or perhaps even in December and positive macroeconomic data supports such outlook. The October Chicago Business Barometer rose … “Dollar Jumps vs. Euro on QE Tampering Speculations”
Month: October 2013
Yen Jumps as Bank of Japan Issues Optimistic Forecast
The Japanese yen jumped today after the central bank maintained its extremely accommodative monetary policy, but boosted growth forecasts and signaled that inflation may reach the target next year. The Bank of Japan kept interest rates near zero and the size of annual asset purchases at ¥60–70 trillion. The central bank increased expected growth of gross domestic product in 2014 to 1.5 percent up from the previous prediction of 1.3 percent. … “Yen Jumps as Bank of Japan Issues Optimistic Forecast”
Draghi could change expectations on rates and LTRO
The ECB does not need verbal intervention do push the euro lower. Draghi can change rate and liquidity expectations without talking about the exchange rate, and the euro will likely follow. The Trichet era showed that trying to manage the currency through verbal intervention was pretty futile, says Simon Smith of FxPro. In the interview below, … “Draghi could change expectations on rates and LTRO”
CAD Higher for Now, but More Weakness Could Come
Canadian dollar is higher today, but more weakness could be on the way. For now, the loonie is gaining against its major counterparts as it appears that the economy is still in expansion mode, albeit at a slightly slower pace. Statistics Canada reports that the economy expanded 0.3 per cent in August. This is down from the 0.6 per cent expansion seen in July. However, many aren’t too … “CAD Higher for Now, but More Weakness Could Come”
GBP/JPY Drops on Consumer Confidence, GBP/USD Erases Losses
The Great Britain pound dropped versus the Japanese yen today with the decline of consumer confidence, but erased losses versus the US dollar after the positive report about house prices. Nationwide House Price Index rose 1.0 percent in October, exceeding the forecast of 0.7 percent. At the same time, the GfK Consumer Confidence Index declined from -10 in September to -11 in October. The mixed data resulted in the mixed performance of the sterling. GBP/USD … “GBP/JPY Drops on Consumer Confidence, GBP/USD Erases Losses”
ECB Rate Cut May Come After All
The latest economic data out of the eurozone is somewhat disappointing — and indicative of continued economic malaise in the 17-nation currency region. Concerns are rising about what’s next for the euro, and there is speculation that the ECB will have to cut rates, even though an official just recently indicated that wasn’t a preferred option. The euro is down as a result. The European Union‘s statistics office has released the latest inflation data, and it … “ECB Rate Cut May Come After All”
Emerging market currencies at the mercy of Fed’s taper
Many emerging market currencies are vulnerable to severe sell-offs the day the US Federal Reserve reins in its quantitative easing programme. The timing of the so called Fed taper – and possibly an emerging market crisis – is complicated by several factors. Many emerging market countries have over-dosed on easy money from the central banks … “Emerging market currencies at the mercy of Fed’s taper”
AUD/USD Rises as Building Permits Surge
The Australian dollar rose against its US counterpart today, supported by very good housing data. The Aussie was flat against the Japanese yen. Australian building approvals surged 14.4 percent in September after falling 1.6 percent in the preceding month. The actual reading was high above the forecast of 2.9 percent. Such data suggests that an interest rate cut from the Reserve Bank of Australia is not required for aiding … “AUD/USD Rises as Building Permits Surge”
USD/JPY: Trading the ISM Manufacturing PMI Oct 2013
The ISM Manufacturing PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers in the manufacturing sector. Respondents are surveyed for their view of the economy and business conditions in the US. A reading which is higher than the market forecast is bullish for the dollar. Here are all the details, and 5 possible … “USD/JPY: Trading the ISM Manufacturing PMI Oct 2013”
FXTrade Financial Launches the “Ladder Option” with MarketsPulse
MarketsPulse, which provides platforms for binary options, has facilitated the launch of the Ladder Option, with its Japanese partner FXTrade Financial. The company is one of the first to do so. MarketsPulse recently launched enhanced capabilities for binary options brokers. For more about the Ladder Option, here is the full press release: Toronto- MarketsPulse (marketspulse.com), the leading … “FXTrade Financial Launches the “Ladder Option” with MarketsPulse”