Central banks are shifting their policies in response to signs that economies are returning to growth. In many ways it looks like a comforting return to the ‘old normal’ when a broad range of indicators influenced currencies. If so that suggests USD weakness, but beware the three bears. Quantitative easing is being wound down, except … “The Return of Goldilocks Means a Weaker USD, but Beware”
Month: February 2014
Eurozone PMI and Risk Aversion Send Euro Lower
Euro is mostly lower today, losing ground as the latest PMI data weighs on the 18-nation currency, and as risk aversion sets in. Concerns about China’s recently released — and disappointing — data are weighing on sentiment, and it’s not helping that gold is pulling back as well. Add to the worries about the eurozone in general, and it’s no surprise the euro is struggling. Once again, disappointing data is front and center. Economic … “Eurozone PMI and Risk Aversion Send Euro Lower”
Yen Rallies on Risk Aversion, Struggles to Keep Gains
The Japanese yen was rising today as Forex market participants felt need for safety. Yet the currency was not able to rally for long and currently is struggling to keep gains, trading close to the opening level against some of its most-traded counterparts. Political turmoil in such countries as Thailand, Ukraine and Venezuela made the trading environment not particularly suitable for risky investments, increasing demand for safer assets. The worse-than-expected manufacturing data from … “Yen Rallies on Risk Aversion, Struggles to Keep Gains”
Canadian Dollar Pulls Back on Commodities, China
Canadian dollar was higher in earlier trading, but has now pulled back. Thanks to concerns about lower commodities and the fact that disappointing data out of China is weighing on sentiment and high beta currencies, the loonie is now losing ground in some cases, particularly against the greenback. Trading for the Canadian dollar is a bit choppy right now. Earlier, the loonie saw gains against most of its major counterparts, … “Canadian Dollar Pulls Back on Commodities, China”
NZ Dollar Shows Resilience in Face of Detrimental Fundamentals
Both domestic and overseas fundamentals were negative for the New Zealand dollar, and the currency dropped against the Japanese yen at the first half of today’s trading session. Yet despite the detrimental factors the kiwi managed to rebound against the yen, erasing losses, and to rise a bit versus the US dollar. The HSBC Flash China Manufacturing Purchasing Managersâ Index fell from 49.5 in January to 48.3 in February, reaching the seven-month low. Analysts have thought that … “NZ Dollar Shows Resilience in Face of Detrimental Fundamentals”
UK unemployment figures falling: A sign of things to
The announcement about jobless figures from the Office for National Statistics provided both good and bad news. The underlying figure revealed that the number of people out of work in the last three months of 2013 fell by 125,000, but when compared to the previous quarter, the actual unemployment rate rose slightly from 7.1% to … “UK unemployment figures falling: A sign of things to”
GBP/USD – Trading The British Retail Sales
British Retail Sales is the primary gauge of consumer spending and is one of the most important economic releases. A reading that is higher than the market forecast is bullish for the British pound. Update: UK retail sales drop 1.5% – more than expected Here are all the details, and 5 possible outcomes for GBP/USD. Published on … “GBP/USD – Trading The British Retail Sales”
US Dollar Unable to Keep Gains Despite Taper Speculations
The US dollar jumped against the euro after the Federal Reserve released its monetary policy minutes yesterday, but was flat versus the Great Britain pound and the Japanese yen. Today, the greenback continued to trade sideways against the sterling, but fell a little versus the euro and slumped against the yen. The Fed minutes revealed that US policy makers are going to proceed with quantitative easing tapering: In their discussion of monetary … “US Dollar Unable to Keep Gains Despite Taper Speculations”
Chilean Central Bank Plans More Interest Rate Cuts, Peso Weak
The Chilean peso ended yesterday’s trading session weak against the US dollar as the nation’s central bank cut interest rates and signaled about possibility of additional monetary stimulus. The currency rose a little versus the euro at the start of the current trading session. The Central Bank of Chile cut its main interest rate by 25 basis points to 4.25 percent on February 18. The central bank spoke about robust economic recovery in developed nations, … “Chilean Central Bank Plans More Interest Rate Cuts, Peso Weak”
Alpari increases Binary Options activity – partners with MarketsPulse
Alpari is enhancing its activity in the binary options field with a cooperation with platform provider MarketsPulse and Binary Products. MarketsPulse recently launched enhanced capabilities for binary options brokers. For more on the partnership, here is the official press release: London- Due to the success and trader demand of their binary option trading site thus far, … “Alpari increases Binary Options activity – partners with MarketsPulse”