The economic and political hurdles for the US Federal Reserve to taper its bond purchases are steadily being removed making it almost a dead certainty – but don’t expect it to necessarily spur a USD rally, at least not yet. It appears Democrats and Republicans are closing in on a deal over the US budget, … “The Fed Taper Is Almost a Dead Certainty – But”
Month: December 2013
Australian Dollar Drops as Unemployment Rate Ticks Up
The Australian dollar dropped today after data showed that the unemployment rate increased despite strong growth of employment last month. Australian employment grew by 21,000 in November after rising by 700 in October. It was two times the forecast reading of 10,300. Nevertheless, the unemployment rate ticked up by 0.1 percentage point to 5.8 percent. Such increase was expected, but for whatever reason traders preferred to pay attention to the bad … “Australian Dollar Drops as Unemployment Rate Ticks Up”
Euro Takes a Hit After Industrial Output News
The latest news about industrial output in the eurozone is weighing on the euro right now. The 17-nation currency is pulling back against some of its major counterparts, dropping as concerns about the economic growth of the region return. Eurostat reports that the industrial output for the eurozone during October was 1.1 per cent lower than the output seen in September. This news indicates that the economy might not be doing as well … “Euro Takes a Hit After Industrial Output News”
Loonie Pulls Back After Recent Gains
Canadian dollar is heading lower today following a few days of gains against most of its major counterparts. The loonie saw some solid gains on recent oil prices data, but now it appears that some Forex traders are taking profits and trying to position themselves for what might be next. Loonie is heading lower today, following a bit of a surge yesterday. The narrowing oil price discount … “Loonie Pulls Back After Recent Gains”
SNB Keeps Ceiling for Franc
The Swiss franc fell against the US dollar and erased gains versus the euro after the Swiss National Bank kept its monetary policy unchanged today, maintaining the cap on the currency. The SNB kept its main interest rate near zero and the ceiling at 1.20 francs per euro. The central bank said in the statement: With the three-month Libor close to zero, the minimum exchange rate continues to be the right tool to avoid an undesirable tightening … “SNB Keeps Ceiling for Franc”
2014: Global Currencies Outlook
by Dean Popplewell, Director of Currency Analysis and Research, MarketPulse More than five years after the onset of the Great Recession, consistent global growth remains elusive, prompting central banks to stick with artificially low interest rates while pumping an unprecedented infusion of cash into the financial system. As they search for new ways to stimulate … “2014: Global Currencies Outlook”
Signs of Budget Agreement Do Not Make Dollar Very Strong
There were signs that US politicians may reach an agreement about the budget. The dollar attempted to profit from the news, but was unable to demonstrate any real strength against the euro and the Japanese yen, though rallied against the Great Britain pound. US Senate Budget Committee Chairman Senator Patty Murray and House Budget Committee Chairman Representative Paul Ryan introduced a budget plan that would prevent automatic … “Signs of Budget Agreement Do Not Make Dollar Very Strong”
NZ Dollar Trims Losses as RBNZ Signals About Stimulus Withdrawal
The New Zealand dollar was soft today, but managed to erase part of its losses after the central bank signaled that it may reduce monetary stimulus in relatively near future. The Reserve Bank of New Zealand kept its benchmark interest rate (the Official Cash Rate) at 2.5 percent today. Governor Graeme Wheeler indicated in the statement that inflation pressure is strengthening: Annual CPI inflation increased to 1.4 … “NZ Dollar Trims Losses as RBNZ Signals About Stimulus Withdrawal”
Money Market Rates Help Euro
The latest money market rates are providing some help for the euro right now. It appears that things are looking up for the euro as the ECB signals that, even though rates are likely to remain low, they won’t be cut further. Euro is gaining ground today as overnight money market rates in the eurozone head a little higher. Slightly higher rates are a sign of a strengthening economy, and there … “Money Market Rates Help Euro”
AUD/USD: Trading the Australian jobs Dec 2013
Australian Employment Change, which is released monthly, provides a snapshot of the health of the Australian labor market. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are the details and 5 possible outcomes for AUD/USD. Published on Thursday at 00:30 GMT. Indicator Background Job creation is one … “AUD/USD: Trading the Australian jobs Dec 2013”