The Taiwan dollar rose today, joining the rally of other riskier currencies, amid speculations that signs of faltering economic recovery in the United States will force the Federal Reserve to keep interest rates low for a longer period of time than was previously thought. As many other higher-yielding currencies, the Taiwan dollar rallied after the US economy demonstrated the worst contraction since 2009. It led to speculations that the Fed will not … “Taiwan Dollar Profits from US Economic Woes”
Month: June 2014
NZD/USD Near Record as Traders Flee Greenback
The New Zealand dollar advanced today, trading near the all-time high against its US counterpart, after yesterday’s poor macroeconomic data from the United States triggered flight of traders from the greenback to other currencies. The gross domestic product report showed that last quarter’s decline of US economy was much bigger than was previously considered. It led to speculations that the Federal Reserve will be required … “NZD/USD Near Record as Traders Flee Greenback”
China takes step to let market set foreign currency
By Mike Fox The removal of forex deposit rate caps represents a step towards liberalization of interest rates and will increase hopes for raising the cap on yuan deposits in coming months. It would pay some of the highest rates for savers in the world, but also increase borrowing costs. Source: Leap Rate
Mr Market
If you recall Q1 in the United States was all about the bad weather and the restraining effect that was having on economic activity, but that was a terrible Q1 GDP number out of the states yesterday. I am starting to have some sympathy for Janet Yellen’s “catch 22”. I think out of habit the … “Mr Market”
Fears relating to curtailing of CFTC cross-border swap jurisdiction
By Andrew Saks-McLeod US Government signs off bill scaling back the CFTC’s power to control swaps in other countries, after a year of planning global regulatory standardization Source: Leap Rate
GBP Flat, Retains Downside Bias on High Street Sales
The Great Britain pound was little changed today. The currency is likely to retain its downside bias after the central bank’s chief shocked the market, suggesting that monetary tightening is not going to happen soon, and UK economic data was not supportive for the sterling. Confederation of British Industry reported: High street sales growth slowed markedly in the year to June, although the pace is expected to pick up next … “GBP Flat, Retains Downside Bias on High Street Sales”
Dollar Demonstrates Weakness After GDP Report
The US dollar fell yesterday against its major peers on signs that economic recovery in the United States is faltering. The currency extended its decline versus the Japanese yen today but stayed flat versus the euro and the Great Britain pound. US gross domestic product shrank as much as 2.9 percent in the first quarter of 2014 from a year ago according to the final estimate. The reading was far worse than the previous … “Dollar Demonstrates Weakness After GDP Report”
NZD/USD: Trading the New Zealand Trade June 2014
New Zealand Trade Balance, which is released monthly, is an important indicator of the health of the New Zealand economy. A reading which is higher than expected is bullish for the New Zealand dollar. Here are the details and 5 possible outcomes for NZD/USD. Published on Thursday at 22:45 GMT. Indicator Background Trade Balance is … “NZD/USD: Trading the New Zealand Trade June 2014”
Do central bankers know what they’re doing?
Market View – MahiFX It’s quite common these days for central bankers to say something, even quite boldly, and soon after contradict themselves sending the currency in a completely different direction. Is it currency manipulation at work or something far bigger? This week it was Mark Carney’s turn, the Bank of England governor, to wrong … “Do central bankers know what they’re doing?”
Japanese Yen Moves Higher After May CSPI
Japanese yen is higher today, gaining ground against its major counterparts, following the release of May CSPI data. With concerns about what might be next on a global scale, there is a bit of an interest in safe haven. On top of that, with signs that the Japanese economy is recovering, there are some thoughts that the Bank of Japan won’t need to keep the yen weak. For the month of May, the Japanese … “Japanese Yen Moves Higher After May CSPI”