US dollar is lower today on expectations that the Federal Reserve won’t begin tapering its asset purchase program until next year. With US jobs growth slowing, and analysts still trying to determine the economic impact of the recent government shutdown, it just doesn’t make sense for the Fed to reduce stimulus right now. Earlier this week, the payrolls report for September was released (delayed by the government shutdown). The data … “Delayed Taper Expectations Send Greenback Lower”
Month: October 2013
Euro Continues to Gain Ground
Even with the latest drop in the PMI, the euro is still surging in Forex trading. Indeed, the 17-nation currency continues to defy expectations and move higher as risk appetite improves and Forex traders become more confident about the eurozone economy. According to the latest data from Markit, the eurozone PMI dropped to 51.5 in October, down from 52.2 in September. However, anything above a 50.0 indicates economic expansion, so the eurozone is still … “Euro Continues to Gain Ground”
Norwegian Krone Rises After Central Bank’s Statement
The Norwegian krone advanced today after the central bank left its main policy rate unchanged and said that the currency has depreciated. Such wording suggests that policy makers will not take actions to weaken the krone. The Norges Bank maintained its key interest rate at 1.5 percent at today’s meeting. Governor Oeystein Olsen said in the accompanying statement: Inflation in September was lower than expected, but at the same … “Norwegian Krone Rises After Central Bank’s Statement”
Indonesian Rupiah Rises as China’s PMI Improves Sentiment
The Indonesian rupiah rose a little today as China’s manufacturing index ticked up this month, improving prospects for exports of Indonesia. The positive data improved the market sentiment that was previously negative. The HSBC Flash China Manufacturing Purchasing Managersâ Index rose from 50.2 in September to 50.9 in October. The actual value exceeded the market expectations of 50.5. The report was rather optimistic and eased concerns caused by monetary tightening in China. USD/IDR … “Indonesian Rupiah Rises as China’s PMI Improves Sentiment”
6 Forex Trading Habits That Make You Lose Money
Forex presents many opportunities to traders, but at the same time it can be easy to fall into a losing spiral and lose some, or all, of your investment. To prevent this happening, there are essential risk management rules that all beginners should follow. In this article, we have outlined 6 trading habits that often … “6 Forex Trading Habits That Make You Lose Money”
GBP/USD: Trading the British Preliminary GDP Oct 2013
British Preliminary GDP, published each quarter, measures the production and growth of the UK economy. Analysts consider GDP one the most important indicators of economic activity. A reading which is higher than the market forecast is bullish for the pound.ov Here are all the details, and 5 possible outcomes for GBP/USD. Published on Friday at … “GBP/USD: Trading the British Preliminary GDP Oct 2013”
Aussie Suffers from China’s News
The Australian dollar tumbled today as news from China resulted in risk aversion driving investors away from currencies with higher yield. News about monetary tightening in China resulted in wide-spread fear on the Forex market. The Asian country is the biggest trading partner of Australia, therefore it was not a surprise that the Aussie (as the Australian currency is often called) was also affected by the negative impact. Even positive domestic … “Aussie Suffers from China’s News”
Less Hawkish BoC Damages Canadian Dollar
The Canadian dollar demonstrated a sharp drop today as the Bank of Canada left interest rates unchanged and, what is more important, dropped hints of eventual interest hike from its statement. The BoC left its benchmark overnight rate at 1 percent at today’s policy meeting. Such decision was expected. Yet market participants were still surprised as the statement was significantly less hawkish that the previous statements and did … “Less Hawkish BoC Damages Canadian Dollar”
GBP’s Outlook Still Bright, but Beware Lurking Gremlins
Amongst a number of weaknesses such as a huge current account deficit the UK also has an inflation problem, which will eventually take its toll on GBP. For the time being at least a robust real estate market and recovering economy will be strongly supportive of Sterling. The UK has long had an inflation prone … “GBP’s Outlook Still Bright, but Beware Lurking Gremlins”
US Dollar Gains on Fears Over Chinese Money Market Rates
The latest news out of China, with money market rates on the rise, is prompting gains for the greenback today. Indeed, there is enough concern about liquidity that many Forex traders are looking for safe haven, and buying the dollar for the stability. US dollar took a hit after the release of September payrolls data yesterday. The latest numbers indicate that the Federal Reserve is unlikely to begin tapering its asset purchase … “US Dollar Gains on Fears Over Chinese Money Market Rates”