The Japanese yen was very weak today after the Bank of Japan maintained monetary accommodation unchanged and boosted the lending program, increasing its term at the same time. The BoJ maintained its asset purchase program at ¥60–70 trillion at today’s policy meeting. The central bank also announced: The Policy Board also decided, by a unanimous vote, to double the scale of (i) the Fund-Provisioning Measure to Stimulate Bank Lending (hereafter “Stimulating Bank Lending Facility”) … “Yen Shows Weakness After BoJ Boosts Lending”
Month: February 2014
Dollar Starts Week on Strong Footing
The US dollar started the week fairly strong against most major currencies, though it was flat versus such currencies as the euro and the New Zealand dollar. The major highlight of this week will be the minutes of the latest Federal Reserve monetary policy meeting. The Federal Open Market Committee will release the minutes on February 19. They should reveal the thought of policy makers that led to the reduction of monetary stimulus. Additionally, … “Dollar Starts Week on Strong Footing”
Conflicting Fundamentals Leave Kiwi Without Clear Trend
The New Zealand dollar was flat today against its US counterpart and the euro because of conflicting fundamentals. On one hand, the news from China was good, boosting risk appetite among Forex traders. On the other, domestic economic data was not helpful for the New Zealand currency. The kiwi managed to rise versus the Japanese yen. New bank lending in China jumped almost three times in January from the previous month, … “Conflicting Fundamentals Leave Kiwi Without Clear Trend”
Yen Drops as Economic Growth Misses Forecasts
The Japanese yen fell today as the nation’s economy disappointed traders, growing slower than was predicted. This led to speculations that policy makers will introduce additional monetary easing and take actions to prevent strengthening of the currency. Japanese gross domestic product expanded by just 0.3 percent in the fourth quarter of 2013, the same rate as in the third quarter, while market participants have hoped for 0.7 percent growth. Furthermore, expansion of industrial … “Yen Drops as Economic Growth Misses Forecasts”
Pound Rises with House Prices, Unable to Keep Gains
The Great Britain pound reached the highest level in more than four years against the US dollar and the strongest in a year versus the euro before retreating below the opening level today. The rally followed yet another positive macroeconomic report from the United Kingdom. Rightmove reported that the House Price Index rose 3.3 percent in February from January, when it advanced 1.0 percent. The data allowed the sterling to reach news … “Pound Rises with House Prices, Unable to Keep Gains”
EUR/USD: Trading The German ZEW Feb 2014
The German ZEW Economic Sentiment Index is based on a monthly survey of institutional investors and analysts and their views of the German economy. A reading that is higher than the market forecast is bullish for the euro. Update: German ZEW Economic Sentiment Falls- EUR/USD follows Here are all the details, and 5 possible outcomes for … “EUR/USD: Trading The German ZEW Feb 2014”
UK Pound Top Performer Over Week
This week was overwhelmingly good for the Great Britain pound as the currency was the strongest on the Forex market. Commodity currencies also performed well, while other major currencies like the US dollar, the euro and the Japanese yen were among weakest. Forecasters were right to some degree in their prediction that the past week would be important for the sterling. Yet they were wrong to expect bearishness from the currency, which has … “UK Pound Top Performer Over Week”
Aussie Resumes Rally with Help from China’s Consumer Inflation
The Australian dollar resumed its rally, following yesterday’s drop, as accelerating inflation in China improved prospects for exports from the South Pacific nation and lifted the traders’ sentiment. The Chinese Consumer Price Index rose by 2.5 percent year-on-year in January. The increase was a bit higher than analysts’ expectations. The gauge went up by 1.0 percent on a monthly basis. Meanwhile, the Producer Price Index decreased 1.6 percent year-on-year and 0.1 percent month-on-month. … “Aussie Resumes Rally with Help from China’s Consumer Inflation”
Construction Growth Brings GBP/USD to Record High Since 2011
The Great Britain pound advanced today after the gauge of the construction industry increased, adding to evidences of steady economic growth in the United Kingdom and increasing chances for an interest rate hike next year. The currency reached the highest rate since 2011 against the US dollar. Seasonally adjusted construction output rose by 0.2 percent in the fourth quarter of 2013. It was down 0.3 percent according to the estimate published last month. The positive data … “Construction Growth Brings GBP/USD to Record High Since 2011”
US Dollar Index Drops on Better News Across the Atlantic
The US dollar index is heading lower today, dropping as better news arrives from Europe. As the situations in the United Kingdom and in the eurozone improve, and as US data misses expectations, the greenback is struggling. The latest economic news out of the United States has been disappointing. Unemployment claims and retails sales data have been weighing on the greenback. On top of that, many Forex traders are contrasting this disappointing data with the better … “US Dollar Index Drops on Better News Across the Atlantic”