The Taiwan dollar advanced today on speculations that capital inflows into Taiwan’s economy will prompt the central bank to refrain from an intervention even as the currency appreciates. Taiwan’s benchmark TAIEX index rallied 1.1 percent today as overseas investors poured a net $666 million into local shares. Analysts think that inflation may accelerate to 1.8 percent this month, the fastest pace since February 2013. Unlike some … “Taiwan Dollar Gains on Capital Inflows”
Month: August 2014
Ringgit Retreats vs. Dollar, Retains Optimistic Prospects
The Malaysian ringgit retreated a bit against the US dollar today after the initial rally, but analysts still have a positive outlook for the currency due to Malaysia’s accelerating economic growth and expectations of an interest rate hike. Malaysia’s gross domestic product expanded 6.4 percent in the second quarter of this year, demonstrating the fastest growth in more than a year and beating analysts’ estimates. The Bank Negara Malaysia increased its key interest rate … “Ringgit Retreats vs. Dollar, Retains Optimistic Prospects”
Canadian Dollar Retains Strength
Loonie is retaining some of its recent strength in Forex trading, logging gains on the Burger King plan to buy Tim Hortons, as well as getting some help from expectations for positive economic data, due out tomorrow. Canadian dollar is getting a boost from high expectations right now. While some believe that the loonie is overvalued, right now the currency is doing reasonably well against most … “Canadian Dollar Retains Strength”
Aussie Climbs on Capex Data
The Australian dollar jumped against its US counterpart after data showed that private investment increased last quarter unexpectedly. The Aussie’s gains against the euro and the Japanese yen were smaller, but the Aussie dollar still reached the highest level this year against those currencies. New capital expenditure (capex) rose 1.1 percent in the June quarter from the March quarter on a seasonally adjusted basis. The median forecast promised … “Aussie Climbs on Capex Data”
Dollar Halts Rally as Traders Trim ECB Easing Bets
The US dollar declined yesterday and maintained its losses today as investors trimmed bets on monetary easing from the European Central Bank. It is also likely that profit-taking contributed to the greenback’s drop. The ECB will conduct its monetary policy meeting on the next week, and traders were anticipating additional monetary accommodation after bearish comments from ECB President Mario Draghi at the Jackson Hole Symposium last week. But … “Dollar Halts Rally as Traders Trim ECB Easing Bets”
Deflation expectations are well anchored – will Draghi deliver?
ECB president Mario Draghi began accepting that low inflation is not solely related to temporary factors, but also to changes in expectations. He also hinted of imminent action regarding an ABS program (aka QE or printing euros). The current level of inflation, 0.4%, is too just too far from the ECB’s mandate, and improvement is out of sight. The … “Deflation expectations are well anchored – will Draghi deliver?”
NZ Dollar Gains on Fonterra Dairy Price Forecast
The New Zealand dollar climbed today after Fonterra Cooperative Group Ltd., the world’s biggest dairy exporter, maintained its milk-price forecast on expectations that China will increase imports. China reduced its purchases of dairy products after building up inventories, making Fonterra cut its forecast previously. Many analysts had expected another cut today and were relieved to see that the forecast remained unchanged as the group … “NZ Dollar Gains on Fonterra Dairy Price Forecast”
EUR/USD Touches New Low on German Consumer Sentiment
The euro touched a new low for the year versus the US dollar today as traders are anticipating additional monetary easing from the European Central Bank. Worsening German consumer sentiment was not helping matters. While the shared 18-nation currency bounced against the greenback and was flat versus the Japanese yen most market analysts expect the weakness to persist in the future. The GfK German Consumer Climate unexpectedly slipped from 8.9 to 8.6 … “EUR/USD Touches New Low on German Consumer Sentiment”
AUD/JPY breaks to new high as Aussie shows resilience
The Australian dollar remains resilient while the Japanese yen goes with the rest of the currencies giving in to the US dollar. The result is a new record high for AUD/JPY. The new high at 97.11 is the highest level since June 2013, more than one year ago. The current move is a break above … “AUD/JPY breaks to new high as Aussie shows resilience”
QE seems imminent in the euro-zone; BOE could raise
With the risks of sustained deflation becoming more real and the ongoing talk about QE, there is no reason to delay this move, says Simon Smith of FxPro, even though the effectiveness isn’t that clear. In the interview below, Smith also explains why the cycle of rate hikes could commence in the UK already in … “QE seems imminent in the euro-zone; BOE could raise”