The Australian dollar managed to rise today even as fundamentals were not supportive, both domestically and overseas. It looks like monetary tightening of various central banks made the traders’ sentiment good enough to overcome adverse factors. Australian import prices fell 0.6 percent and export prices were down 0.5 percent in the fourth quarter of 2013 from the third quarter. The HSBC Purchasing Managersâ Index for China dropped to 49.5 in January … “Negative Fundamentals Do Not Prevent Aussie’s Gains”
Month: January 2014
Loonie Struggles to Regain Ground, Likely to Fall Further
Loonie is struggling to regain some of the ground it lost in earlier trading against the greenback. However, there isn’t a lot to support the Canadian dollar right now, and so it is expected to continue to struggle. The Canadian dollar is expected to perhaps drop as far as 85 cents against the US dollar by the middle of 2014. The Canadian dollar has been struggling to regain ground lost earlier by a combination of factors contributing to a generally lackluster … “Loonie Struggles to Regain Ground, Likely to Fall Further”
USD/CAD: Trading the Canadian GDP Jan 2014
Canadian GDP is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the Canadian dollar. Here are all the details, and 5 possible outcomes for USD/CAD. Published on Friday at 13:30 … “USD/CAD: Trading the Canadian GDP Jan 2014”
NZ Dollar Weaker as RBNZ Delays Monetary Tightening
The New Zealand dollar dropped today as the nation’s central bank kept monetary policy unchanged, refraining from an interest rate hike. At the same time, the tone of the statement was very hawkish and suggested that monetary tightening will occur soon. The Reserve Bank of New Zealand kept its key interest rate at 2.5 percent. Governor Graeme Wheeler was very upbeat in the statement and hinted that a rate hike is not … “NZ Dollar Weaker as RBNZ Delays Monetary Tightening”
Fed Tapers, Dollar’s Gains Limited
The US dollar rose today after the Federal Reserve performed quantitative easing tapering yesterday. Surprisingly, the Forex market did not react very strongly to the news and the dollars’ gains were not particularly big. The Fed announced yesterday that it is going to reduce the size of monthly purchases by yet another $10 billion. The statement said: Beginning in February, the Committee will add to its holdings of agency mortgage-backed securities at a pace … “Fed Tapers, Dollar’s Gains Limited”
Taper Tantrums or the Start of an Emerging Markets Forex
29 January 2014 – Unwinding the US Federal Reserve’s quantitative easing programme was never going to be easy and it has barely started and some emerging market countries are already running into trouble. So far the worst hit countries also appear to be victims of their own internal problems, such as high current account deficits and political … “Taper Tantrums or the Start of an Emerging Markets Forex”
Greenback Strengthens on Fed Expectations
The US dollar is strengthening today, thanks in large part to expectations that the Federal Reserve will continue to taper its asset purchase program. With the US economy mostly on the upswing, and unemployment at a more reasonable level, many think that the Fed will continue to cut its quantitative easing efforts. Today is the second day of a two-day meeting of the Federal Open Market Committee. It’s the last meeting being held under … “Greenback Strengthens on Fed Expectations”
Euro Down Today, But Could That Change Tomorrow?
The euro is down today, due largely to the fact that there are still a few economic uncertainties, and due to the fact that risk appetite remains elusive on a global scale. Once again, markets are falling and there are concerns about a global slowdown. But, while the euro is down today, many are looking forward to eurozone data that could help the 18-nation currency. Euro is down against … “Euro Down Today, But Could That Change Tomorrow?”
Ruble Does Not Join Other Risky Currencies in Gains
The Russian ruble did not join other currencies of emerging markets in a rally, falling instead today. It looks like Forex market participants were to afraid to buy the currency ahead of today’s monetary policy decision of the US Federal Reserve. Recently, traders were favoring currencies with high risk, but with potential for higher return, especially after the Turkish central bank has unexpectedly tightened its monetary policy. … “Ruble Does Not Join Other Risky Currencies in Gains”
UK Housing Market Looks Good, Beneficial for Sterling
The Great Britain pound ticked up today as a report confirmed that Britain’s housing sector continues to expand, albeit with slower pace. The sterling was heading for a third straight session of gains against the Japanese yen, but has retreated at the present time. The Nationwide House Price Index rose 0.7 percent in January, matching analysts’ expectations. The increase followed the 1.4 percent growth in the previous month. The data supported the general positive … “UK Housing Market Looks Good, Beneficial for Sterling”