The Australian dollar dropped yesterday after poor employment data. Today, the currency maintained losses as the central bank policy statement came out rather dovish and confirmed possibility of an interest rate cut. Australian employment grew by just 1,100 in October from September, while much bigger growth by 10,300 was expected by experts. The unemployment rate was at 5.7 percent. The Reserve Bank of Australia released its monetary policy statement today. … “Aussie Maintains Weakness on Employment & RBA Statement”
Month: November 2013
No Surprise from BoE, Monetary Policy Unchanged
The Great Britain pound fell today after the Bank of England kept its benchmark interest rate and the size of asset purchases unchanged. The currency erased its previous advance versus the Japanese yen, but trimmed losses versus the US dollar. The BoE announced today: The Bank of Englandâs Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock … “No Surprise from BoE, Monetary Policy Unchanged”
Big Surprise: ECB Cuts Interest Rates
Today’s trading session brought a big surprise for Forex traders: the European Central Bank cut its interest rate. As one could expect, the euro slumped after the news. Yet it looks like the drop was overdone as the currency is recovering right now. The ECB cut its key interest rate (the interest rate on the main refinancing operations) by 25 basis points to 0.25 percent and the rate on the marginal lending facility by 25 … “Big Surprise: ECB Cuts Interest Rates”
Draghi means business with today’s ECB rate
Today’s interest rate cut by the European Central Bank caught many by surprise with the Euro slumping by over 150 points against the US dollar. Just over a week ago, the Euro was trading at over 1.38 against the US dollar. A few minutes ago it was around 1.3330. A substantial fall in such a … “Draghi means business with today’s ECB rate”
ECB Preview: hints, but no action? 6 scenarios
The upcoming ECB rate decision became a very important one. The main reason is the big fall in inflation in the euro-zone. At an annual rate of 0.7%, the ECB is far from its inflation target of 2%. The euro already took a nose dive on heightened expectations for ECB action (as well as other … “ECB Preview: hints, but no action? 6 scenarios”
EUR/USD: Trading the US NFP Nov 2013
US Non-Farm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for EUR/USD. Published on Friday at 13:30 GMT. Indicator Background … “EUR/USD: Trading the US NFP Nov 2013”
Zloty Remains Soft as NBP Pledges Keep Interest Rates Low
The Polish zloty was soft today after the nation’s central bank left interest rates at record low yesterday and pledged to keep monetary policy extremely accommodative for a prolonged period of time. The National Bank of Poland kept its benchmark interest rate at 2.5 percent yesterday. The policy statement was not particularly pessimistic: In Poland, industrial and construction output as well as retail sales in 2013 Q3 confirm low, yet accelerating economic … “Zloty Remains Soft as NBP Pledges Keep Interest Rates Low”
Pound Stronger on Domestic Data, Unable to Beat Euro
The Great Britain pound rose against the US dollar and the Japanese yen today as macroeconomic data supported the view that the Bank of England will not cut interest rates on tomorrow’s policy meeting. The sterling fell against the euro, which was supported by domestic data too. Manufacturing production expanded 1.2 percent in September from August. Industrial production grew 0.9 percent. The Halifax House Price Index was up 0.7 … “Pound Stronger on Domestic Data, Unable to Beat Euro”
Euro Finds Footing After Economic Data
Euro is finding its footing today, thanks to the latest round of economic data. The certainty that the ECB will have to cut rates this week is fading, and that is providing a bit of a boost to the 17-nation currency. One of the difficulties plaguing the euro in recent days has been the concern that the European Central Bank will have to cut rates in order to stimulate a flagging eurozone economy. This has contributed to euro … “Euro Finds Footing After Economic Data”
Good Data from USA Is Bad for Indian Rupee
Positive data continues to come from the United States, feeding speculations about stimulus tampering by the Federal Reserve. Such talks are negative for riskier currencies, including the Indian rupee, which fell today. Yesterday’s good report about the US services sector was followed by today’s release from the Conference Board that showed an increase of the leading indicators by 0.7 percent in September. Signs of positive developments in the US economy make traders … “Good Data from USA Is Bad for Indian Rupee”