This week was bad for the Canadian dollar as the central bank hurt the currency after it dropped its hawkish stance and refrained from mentioning plans for an interest rate hike. It looks like the Bank of Canada is less certain about its ability to raise interest rates in the foreseeable future. This greatly hurt the Canadian currency, which was already weak due to risk aversion caused by monetary tightening in China. Even … “Bank of Canada Makes Week Bad for Canadian Dollar”
Month: October 2013
NZD Falls as Wheeler Says Exchange Rate Too Strong
The New Zealand dollar dropped on the last trading day of this week as Reserve Bank Governor Graeme Wheeler said that the exchange rate is too strong and it prevents raising interest rates “at the moment”. Previously, the RBNZ has suggested in its policy statement that an interest rate hike is likely in 2014. Indeed, Wheeler confirmed in an interview with Radio New Zealand that policy makers are planning to start … “NZD Falls as Wheeler Says Exchange Rate Too Strong”
US Dollar Ends Week Near Lowest in Two Years vs. Euro
The US dollar ended the week near the lowest level in two years against the euro. The greenback closed almost flat versus the Japanese yen and rose versus the Great Britain pound today. The dollar was weakened by the negative consumer sentiment report from the University of Michigan. The index fell from 77.5 in September to 73.2 in October, according the revised reading. It was even lower than already poor preliminary estimate of 75.2. The Federal … “US Dollar Ends Week Near Lowest in Two Years vs. Euro”
CRUDE OIL Broader Bias Remains Lower
CRUDE OIL: Despite its Thursday flat close, Crude Oil remains biased to the downside medium term. This leaves the risk of a return to the 95.95 level. A breach of here will turn attention to the 95.00 level followed by the 94.00 level and then the 93.00 level. Its daily RSI is bearish and pointing … “CRUDE OIL Broader Bias Remains Lower”
Bank of Canada Announcement Weighs on Loonie
Yesterday’s announcement from the Bank of Canada continues to influence the loonie in trading. The Canadian dollar is still struggling today after the change in the central bank’s stance, and the language used to forecast the likely economic situation through 2015. Yesterday, the Bank of Canada announced that inflation is unlikely to hit its 2 per cent target until the end of 2015. Back in July, the forecast called for the 2 per cent target to be hit … “Bank of Canada Announcement Weighs on Loonie”
Japanese Yen Shows Strength in Trading
Japanese yen is showing strength in trading today, heading mostly higher against its major counterparts. There has been a degree of fluctuation very recently, but earlier, the yen logged some solid gains. Japanese yen has been extending its recent gains recently, heading mostly higher against its major counterparts. While some of the gains have been pared back in more immediate trading, the fact … “Japanese Yen Shows Strength in Trading”
Euro Flat as German Business Climate Disappoints
The euro was flat today as a report from Germany disappointed Forex market participants, causing speculations that the recovery of the euro-region is still in danger and the recent strong rally of the shared 17-nation currency was unwarranted. The Ifo Business Climate Index Germany fell from 107.7 in September to 107.4 in October, while analysts predicted an increase to 108.2. It was the first decline in six months. The report said: Assessments of the current business situation … “Euro Flat as German Business Climate Disappoints”
Sterling braced for a fall?
Sterling’s recent strength against the US dollar has been baffling. With the pound currently trading slightly above 1.62 USD, this is making UK exports even more uncompetitive and making it much harder for the UK to sell goods abroad. Goods in the US are generally far more competitively priced, some items at least 30 per … “Sterling braced for a fall?”
Pound Fails Even as UK Economy Grows
The Great Britain pound fell today even as data confirmed that the UK economy is on a stable path to recovery. The currency is consolidating after it has failed to breach the September highs. Britain’s gross domestic product expanded 0.8 percent in the third quarter of 2013, matching market expectations. The report supports the view that the central bank does not need to ease monetary policy further. Yet the currency was unable … “Pound Fails Even as UK Economy Grows”
The $5.3 Trillion Forex Market Explained in an Infographic
New Zealand based forex broker MahiFX published a colorful Infographic that explains the core data from the BIS Triennial Central Bank Survey of foreign exchange market activity. LONDON, 24 October 2013 – MahiFX has released an Infographic ‘Global FX Volume Reaches $5.3 Trillion a Day’ to powerfully illustrate and explain the preliminary data reported in … “The $5.3 Trillion Forex Market Explained in an Infographic”