The New Zealand dollar slipped today after yesterday’s advance. The Reserve Bank of New Zealand kept monetary policy unchanged, but maintained its hawkish bias, signaling about possible interest rate hike next year. The RBNZ left the Official Cash Rate (OCR) unchanged at 2.5 percent yesterday. The central bank hinted that a strong currency may lead to a delay of a rate hike: Sustained strength in the exchange rate that … “NZD Retreats After Rally”
Month: October 2013
Dollar Gains After FOMC Meeting, Shrugs Off Poor Employment
The US dollar was firm after the meeting of the Federal Open Market Committee as the resulting statement was less dovish than market participants have expected. The greenback retained strength despite poor employment data. The FOMC statement was rather optimistic: The Committee sees the downside risks to the outlook for the economy and the labor market as having diminished, on net, since last fall. Nevertheless, the Committee considered that it is too early to think … “Dollar Gains After FOMC Meeting, Shrugs Off Poor Employment”
South Korean Won Joins Rally Ahead of Fed Announcement
The South Korean won was among currencies of emerging markets that were supported by expectations of prolonged quantitative easing from the US Federal Reserve, rising against the dollar today. The won joined other currencies in a rally as traders were speculating that the Fed has no reason to tamper QE. At the same time, some analysts were worried that absence of stimulus trimming was priced in and the rally may be reversed after … “South Korean Won Joins Rally Ahead of Fed Announcement”
Mexican Peso Gains Ahead of FOMC Meeting
The Mexican peso gained today ahead of the Federal Reserve policy meeting on speculations that the Fed will maintain pace of its asset purchases, weakening the dollar and supporting risk-sensitive currencies. The Federal Open Market Committee will announce its decision today and it is widely believed that quantitative easing will remain in place. The disappointing employment report certainly did not give an incentive for the FOMC to trim stimulus. Therefore it … “Mexican Peso Gains Ahead of FOMC Meeting”
Aussie Mixed After RBA Comments
Aussie is mixed today following comments from the governor of the Reserve Bank of Australia. However, there is a good chance that the comments will send the Aussie a bit lower in the future, since he said outright that he expects the Australian dollar to head lower in the future. Glenn Stevens, the governor of the Reserve Bank of Australia, said earlier today that the Aussie isn’t being properly supported by the economy, and that he thinks … “Aussie Mixed After RBA Comments”
Japanese Yen Weakens Across the Board
Japanese yen is heading lower today, weakening across the board as the latest economic data comes in. Concerns that yen policymakers will need to continue to work to keep the yen weaker are on the rise right now as the latest data indicates the possibility of an economic slowdown, as well as concerns about what is next for the US economy. According to the Ministry of Economy, Trade and Industry in Japan, industrial production rose to 1.5 per cent, … “Japanese Yen Weakens Across the Board”
German inflation falls again – ECB rate cut coming?
Germany reported a drop of 0.2% in consumer prices in October. No change was expected. Year over year, prices rose by only 1.3% instead of 1.4% expected. EUR/USD has already been under pressure during the week, and will probably remain on the back foot until the rate decision on November 7th. However, it remains on … “German inflation falls again – ECB rate cut coming?”
Pound Falls, Has Potential to Rally
The Great Britain pound remained soft today, falling for the whole week so far, but may yet rally in the near future as economic recovery can potentially encourage the central bank to review its monetary policy sooner than was previously expected. UK gross domestic product grew 0.8 percent in the third quarter of this year, fastest since 2010. Such performance led to speculations that the Bank of England should … “Pound Falls, Has Potential to Rally”
CAD Soft vs. USD After Poloz’s Comments
The Canadian dollar was soft against its US peer as Bank of Canada Governor Stephen Poloz indicated that he will keep monetary policy accommodative for an extended period of time. The currency gained against the euro and the Japanese yen. Poloz voiced his concern about downside risks to inflation, which was persistently below the 2 percent target, yesterday: Inflation has persistently been below target. Any negative inflation … “CAD Soft vs. USD After Poloz’s Comments”
AUD/USD: Trading the Australian Building Oct 2013
Australian Buildings Approvals measures the change in the number of new building approvals issued. It is one of the most important indicators of the construction sector. A reading that is higher than the market prediction is bullish for the Australian dollar. Here are all the details, and 5 possible outcomes for AUD/USD. Published on Thursday … “AUD/USD: Trading the Australian Building Oct 2013”