The US dollar climbed against the euro today as positive macroeconomic data supported the case for smaller monetary stimulus from the central bank. The currency retreated against the Great Britain pound and the Japanese yen despite supportive fundamentals. The US housing market was strongest almost since 2008 as housing starts were at the seasonally adjusted annual rate of 1.00 million and building permits were at 0.99 million in December. Industrial production expanded by 0.3 … “USD Gains on EUR with Support of Fundamentals, Retreats vs. GBP & JPY”
Month: January 2014
Pound Jumps with UK Retail Sales, Outlook Optimistic
The Great Britain pound jumped today as UK retail sales surprised Forex market participants, being far better than most optimistic expectations. It is expected that next week’s macroeconomic data will also be good, allowing the sterling to recover after the decline at the start of this year. UK retail sales demonstrated very strong growth by 2.6 percent in December from the previous month, which was much … “Pound Jumps with UK Retail Sales, Outlook Optimistic”
Is the Weak Loonie Helping the Canadian Economy?
The Canadian dollar continues to weaken in Forex trading, but not everyone is upset about that. There are some who think that the weaker loonie could be a help to the Canadian economy. Right now, there are expectations that the Canadian dollar will remain weak for the near to medium term. Indeed, some analysts believe that the loonie will hit 90 cents against the greenback by the end of the year. Ever … “Is the Weak Loonie Helping the Canadian Economy?”
Euro Loses Ground Following Construction Data
Euro is losing ground today, falling almost across the board against its major counterparts, as the latest economic data disappoints. This time, it’s the construction data weighing on the 18-nation currency. Euro is heading lower against the other majors today, thanks in large part to the latest construction data. Eurostat reports that construction output fell by 0.6 per cent from October to November. The year over year decline … “Euro Loses Ground Following Construction Data”
Thai Baht Dips as Political Crisis Unfolds
The Thai baht dropped today as the political crisis is unfolding in Thailand, hurting the economy of the country and driving foreign investors away from nation’s assets. Thai Prime Minister Yingluck Shinawatra has dissolved the parliament in December and was resisting anti-government protests since then. As much as 31 protesters were injured after some device, perhaps home-made bomb, exploded. Analysts speculated that the Thai central bank will be required … “Thai Baht Dips as Political Crisis Unfolds”
Chilean Peso Drops on Prospects for Interest Rate Cuts
The Chilean peso fell today after the nation’s central bank kept its key interest rate unchanged yesterday, but suggested than an interest rate cuts are possible in the future. The Central Bank of Chile kept its monetary policy interest rate at 4.5 percent on yesterday’s policy meeting. The central bank had a rather positive outlook for the US and European economies, while the view on the domestic economy was much grimmer: The Chilean … “Chilean Peso Drops on Prospects for Interest Rate Cuts”
Canadian Dollar Losing its Lustre as the Commodity Super
Canada is a major producer and exporter of natural resources, which means its currency is closely tied to the fortunes of commodity prices. With signs that the commodity super-cycle is fading it is likely that CAD will notch up further losses over the course of 2014. A series of economic reforms dating back to the … “Canadian Dollar Losing its Lustre as the Commodity Super”
Dollar Gains as Data Suggests More Stimulus Tapering
Several very good economic reports from the United States were released yesterday, suggesting that the Federal Reserve will keep reducing the size of its monthly asset purchases. The dollar profited from this and gained today. The Consumer Price Index rose 0.3 percent in December, unemployment claims fell by 2,000 to 326,000 and the Federal Reserve Bank of Philadelphia manufacturing index advanced from 6.4 to 9.4 in January. All this reports … “Dollar Gains as Data Suggests More Stimulus Tapering”
Mexican Peso Suffers from Positive US Data
The Mexican peso fell today as positive macroeconomic data from the United States suggested that the Federal Reserve will be able to proceed with its reduction of stimulus program, hurting investors’ confidence and desire to invest in risky assets. US initial jobless claims fell a little last week and the manufacturing index rose strongly this month, suggesting that the economy of the United States is in a good shape. It is possible … “Mexican Peso Suffers from Positive US Data”
Russian Ruble Drops on Fears of Stagflation
The Russian ruble dropped today on concerns about so-called stagflation that threatens the nation’s economy and makes it less attractive for overseas investors. Usually, high inflation is accompanied by strong economic growth, while slow growth means weak inflation. Yet in case of stagflation high inflation is combined with slow economic expansion and high unemployment. Such state is very hard for policy makers to deal with as conventional … “Russian Ruble Drops on Fears of Stagflation”