UK pound is moving higher today, surging ahead of its major counterparts on the latest unemployment report. As the unemployment rate fell to its lowest level in five years, there are expectations that the Bank of England will consider cutting back on its asset purchase program. Sterling is surging ahead of its major currency counterparts today, gaining ground as the UK unemployment rate falls to 7.1 per cent. Economists … “UK Pound Gains Ground After Unemployment Report”
Month: January 2014
USD/JPY: Trading the US Existing Home Sales Jan 2014
The US Existing Home Sales indicator is released monthly, and provides analysts with a snapshot of the health and direction of the housing sector. A higher reading than the market prediction is bullish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Thursday at 15:00 GMT. Indicator Background … “USD/JPY: Trading the US Existing Home Sales Jan 2014”
Positive Inflation & Consumer Sentiment Reports Lift Australian Currency
The Australian dollar rose today after the inflation report surprised Forex market participants positively as consumer prices were rising last quarter faster than was predicted by analysts. The consumer sentiment report, while was not particularly good, was not very bad either. The Consumer Price Index rose 0.8 percent in the fourth quarter of 2013. This is compared with the median analysts’ estimate of 0.5 percent and the previous … “Positive Inflation & Consumer Sentiment Reports Lift Australian Currency”
Canadian Dollar Weaker Ahead of BoC Meeting
The Canadian dollar dropped yesterday, falling below 1.10 against the US dollar for the first time in more than four years, and retained its weakness today. Traders were largely pessimistic about the currency ahead of the central bank’s meeting and fundamentals did not help to alleviate this sentiment. The Bank of Canada is going to meet today to make a decision about monetary policy. No changes to policy are expected, but market … “Canadian Dollar Weaker Ahead of BoC Meeting”
AUD/USD: Trading the Chinese Flash PMI Jan 2014
Chinese Flash Manufacturing PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers in the manufacturing sector. Respondents are surveyed for their view of the economy and business conditions in China. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are all the details, and 5 possible … “AUD/USD: Trading the Chinese Flash PMI Jan 2014”
Lira Touches Historic Low vs. Dollar After Central Bank’s Meeting
The Turkish lira dropped today, reaching the all-time low versus the US dollar, as the central bank kept its benchmark Marginal Funding Rate unchanged despite mounting inflation pressure. The Central Bank of the Republic of Turkey kept its main interest rate at 7.75 percent at today’s meeting, while some analysts have expected an increase. The central bank acknowledged that inflation will likely stay above the 5 percent target and raised … “Lira Touches Historic Low vs. Dollar After Central Bank’s Meeting”
NZ Dollar Backs Off After Rally on Positive CPI
The New Zealand dollar advanced after today’s report showed that inflation was above analysts’ expectations. The currency shed its gains later and is trading near the opening level right now. The Consumer Price Index rose 0.1 percent in the fourth quarter of 2013. It was smaller growth than in the third quarter (0.9 percent), but better than expectations of no growth. Annual inflation accelerated from 1.4 … “NZ Dollar Backs Off After Rally on Positive CPI”
Euro-zone negative deposit rate possible in March as deflation
While deflation in the euro-zone is denied by the ECB, it is certainly on the table. ECB members are getting busier discussing this option, and they are accompanied by other bodies. The IMF just chimed in by saying there is a 10-20% chance for 2014. To fight deflation, the euro-zone needs more economic activity: more … “Euro-zone negative deposit rate possible in March as deflation”
US Dollar Mostly Higher on Fed Taper Expectations
Greenback is mostly higher today, gaining against many of its major counterparts as the latest expectations for a Federal Reserve taper are bandied about. Further tightening in US monetary policy is supporting the US dollar right now. US Treasury yields are rising today, thanks in large part to expectations that the Federal Reserve will announce further tapering next week. Higher yields and the prospect of tighter monetary policy … “US Dollar Mostly Higher on Fed Taper Expectations”
Fed likely to taper little and often as underlying
After announcing the first tapering of bond buys in a manner that was not disruptive, the best strategy from here is to do it little and often, says Simon Smith of FxPro. In the interview below, Smith also discusses the Japanese government’s campaign for wage increases and its impact, the interesting macro divergence in the … “Fed likely to taper little and often as underlying”