The Japanese yen rallied yesterday on speculations that the Bank of Japan will refrain from changing its monetary policy at this week’s meeting. While the currency retreated a bit today, it remains relatively strong. The BoJ started its two-day policy meeting today and will announce its decision tomorrow. It is expected that the central bank will not expand its stimulus program. If this is the case … “Yen Maintains Strength Ahead of BoJ Policy Meeting”
Month: June 2014
New Zealand Dollar Surges as RBNZ Hikes Interest Rate
The Reserve Bank of New Zealand did not disappoint Forex market participants, raising its Official Cash Rate today. The New Zealand dollar soared as a result, rising against the euro for the seventh consecutive trading session, even though such move was widely expected. The RBNZ increased its main interest rate by 25 basis points to 3.25 percent as was expected. The rate statement was not particularly favorable to the kiwi … “New Zealand Dollar Surges as RBNZ Hikes Interest Rate”
Carry trades will help ECB keep EUR weak
So far the European Central Bank’s radical measures, which included negative deposit rates for commercial banks parking their money with it have done wonders to weaken the EUR. But unless more action follows through relatively soon the trend could be gradually reversed. Fortunately for ECB President Mario Draghi, the US Federal Reserve is in the … “Carry trades will help ECB keep EUR weak”
NZD Readies for RBNZ Rate Decision, Goes Higher vs. USD
The New Zealand dollar rallied today against its US counterpart as Forex traders are counting on the New Zealand central bank to raise interest rate at tomorrow’s policy meeting. The kiwi was not able to outperform the Japanese yen. The Reserve Bank of New Zealand will announce its policy decision tomorrow and economists expect the central bank to raise its main interest rate by another 25 basis points to 3.25 percent. … “NZD Readies for RBNZ Rate Decision, Goes Higher vs. USD”
UK Employment Data Helps GBP Gain on USD
The Great Britain pound rose today against the US dollar after UK employment data continued to show an improvement of the labor market in the United Kingdom. The sterling fell versus the Japanese yen for the second session. The number of people seeking unemployment benefits fell by 27,400 in May from the previous month, reaching the lowest level since October 2008. The unemployment rate fell from 6.8 percent in 6.6 percent in April. Both readings were … “UK Employment Data Helps GBP Gain on USD”
Japanese Yen Maintains Much of Its Earlier Strength
Japanese yen continues to maintain much of its earlier strength today, heading higher against many of its major counterparts. Yen is gaining as a better outlook contributes to the idea that more easing will not be necessary for the Japanese economy. Business conditions are showing improvement, according to MOF’s BSI Business Conditions indicator. There are indications that the policy of pursuing weakness might be reduced to some degree, … “Japanese Yen Maintains Much of Its Earlier Strength”
Euro Slips on Negative Interest Rates
Euro continues to struggle today, mostly due to the fact that the ECB is embracing negative interest rates. With flows heading out of the eurozone, it’s no surprise that the 18-nation currency is down pretty much across the board. Euro is heading lower right now, slipping as the ECB continues to pursue a policy of weakening the euro. Economic growth has been a thorny problem for the 18-nation eurozone, and the ECB has been trying … “Euro Slips on Negative Interest Rates”
A UK rate hike could happen already in 2014
The UK economy keeps pushing forward and the recovery is broadening. The rise in housing prices is not limited to London and the recovery is not limited to the housing sector. The recent drop in the unemployment rate from 6.8% in March to 6.6% in April, accompanied by another steady drop in the number of jobless … “A UK rate hike could happen already in 2014”
USD Gains, Boosted by Job Openings, Remains Soft vs. JPY
The US dollar climbed against the euro and the Great Britain pound today due to the release of yet another positive employment report from the United States. The greenback was down versus the Japanese yen. The number of job openings increased from 4.17 million in March to 4.46 in April and was high above the predicted figure of 4.04 million. While this report is considered to be lagging compared to other employment reports (as it looks … “USD Gains, Boosted by Job Openings, Remains Soft vs. JPY”
Good UK Economic Data Doesn’t Make GBP Strong
The Great Britain pound gained on the euro with help of positive domestic fundamentals. The data did not support the sterling versus the US dollar and the Japanese yen, and even gains versus the euro were greatly reduced by now. Both industrial and manufacturing production increased by 0.4 percent in April, matching forecasts exactly. The Retail Sales Monitor of British Retail Consortium demonstrated growth of 0.5 percent in May from the previous year on a like-for-like basis. … “Good UK Economic Data Doesn’t Make GBP Strong”