The Canadian dollar dropped today after the nation’s central bank maintained its overnight rate unchanged, in line with market expectations. Losses were limited, though, and the currency returned close to the opening level against some of its counterparts, including the euro and the Japanese yen. The Bank of Canada left its main interest rate at 1 percent at today’s policy meeting. The central bank commented on the state of the Canadian economy: The Canadian economy grew … “Loonie Falls After BoC Meeting, Tries to Regain Strength”
Month: June 2014
UK Pound Soft due to Shop Price Deflation, Supported by Services PMI
The Great Britain pound was soft today as shop price deflation persisted last month, suggesting that the UK economy is not yet completely healthy. Losses were limited, though, as the services sector continued to demonstrate robust expansion. British Retail Consortium reported that shop prices fell 1.4 percent in May, at the same rate as in the previous month. At the same time, the Markit/CIPS UK Services Purchasing Managers’ Index was … “UK Pound Soft due to Shop Price Deflation, Supported by Services PMI”
Indonesian Trade Deficit Leads to Losses for Rupiah
The Indonesian rupiah dropped today on speculations that the growing trade balance deficit will spur overseas investors to pull their money out of the nation’s economy, diminishing the appeal of Indonesia’s assets. The trade gap widened to $1.96 billion in April, the highest level in nine months. It may lead to growth of the current account deficit, and this is a troubling prospect for the Indonesian economy as last year the big current account shortage led to massive … “Indonesian Trade Deficit Leads to Losses for Rupiah”
Aussie Struggles to Keep Gains Fueled by GDP Report
The Australian dollar rallied today with help of favorable economic reports, including the GDP report that showed accelerating economic growth in Australia. The Aussie has trouble keeping gains, retreating close to the opening level versus its US peer and halting the rally against other currencies. The official data showed that Australia’s gross domestic product grew 1.1 percent in the first quarter of 2014 from the previous three months. The increase … “Aussie Struggles to Keep Gains Fueled by GDP Report”
Traders Speculate that Brazilian Central Bank Won’t Support Real
The Brazilian real is volatile today as Forex traders speculated that the central bank will not be supporting the currency anymore, refraining from an intervention in the currency market, but the actions of the bank make such viewpoint questionable. The program of foreign-exchange swaps introduced last year was supporting the real, and last month’s comments of central bank President Alexandre Tombini about reducing demand for swaps were interpreted as a signs that the central … “Traders Speculate that Brazilian Central Bank Won’t Support Real”
USDCAD: Bullish, Aims At The 1.0941 Level
USDCAD: With a rally seeing the pair closing higher at 1.0902 level on Monday and a follow- through underway, further upside risk is likely. This development now leaves it targeting the 1.0941 level followed by the 1.1000 level and then the 1.1069 level. A cut through here will turn focus to the 1.1100 level. Its … “USDCAD: Bullish, Aims At The 1.0941 Level”
AUD/USD: Trading the Australian GDP Jun 2014
Australian GDP is the primary gauge of the production and growth of the economy. It is considered by analysts as one the most important indicators of economic activity. A reading which is higher than expected is bullish for the Australian dollar. Here are all the details, and 5 possible outcomes for AUD/USD. Published on Wednesday at … “AUD/USD: Trading the Australian GDP Jun 2014”
Forex Traders Continue to Bet Against Loonie
Canadian dollar is lower today, continuing its weakness. Forex traders expect the Bank of Canada to keep rates steady this week, and a hike isn’t expected anytime soon. Loonie is heading lower today, after a brief show of strength earlier. Forex traders and speculators are keeping the Canadian dollar lower, continuing to bet on long-term weakness. A lot of this belief comes from the fact that a sluggish economy means … “Forex Traders Continue to Bet Against Loonie”
Deflation Worries Don’t Stop Euro Today
Poor economic data continues to be the norm in the eurozone, but that hasn’t stopped the euro today. Even with concerns about deflation and a stagnant job market, the euro is moving higher today. Eurostat just released its latest inflation numbers, showing that the annual inflation rate is at 0.5 per cent in May. In April, the rate was 0.7 per cent. This indicates that deflation could become … “Deflation Worries Don’t Stop Euro Today”
UK Pound Gains as HPI Rises
The Great Britain pound advanced today after a good report about house prices, yet gains were limited as not all today’s data from the United Kingdom was particularly good. The Nationwide House Price Index rose 0.7 percent in May, exactly as was predicted, registering the thirteenth consecutive increase. At the same time, the Markit/CIPS UK Construction Purchasing Managersâ Index demonstrated a drop from 60.8 to 60.0 last month. … “UK Pound Gains as HPI Rises”