The Malaysian ringgit fell today as risk aversion eroded the appeal of higher-yielding currencies associated with risk. The market sentiment was hurt by prospects of early monetary tightening from the Federal Reserve. Last week’s comments from the Fed showed the US policy makers are considering to start raising interest rates earlier than was planned previously, allowing the dollar to rally. Consequently, currencies of emerging markets, including the ringgit, suffered. There … “Market Sentiment Doesn’t Favor Risk, Ringgit Suffers”
Month: August 2014
USDCHF: Bullish, Targets Further Upside
USDCHF: With USDCHF reversing its two-week losses to close higher the past week, further upside is likely in the new week. On the upside, resistance resides at the 0.9156 level where a break will aim at the 0.9180 level. Further out, resistance resides at the 0.9200 level. A breather may occur here and turn the … “USDCHF: Bullish, Targets Further Upside”
Loonie Trades Mixed on Latest News
Canadian dollar is trading mixed today, seeing different results thanks to the latest news and data released around the world. With stocks looking to rise, loonie is a getting a boost against some of its counterparts. A certain degree of risk appetite, at least when it comes to a desire for stocks, is helping the Canadian dollar today in Forex trading. The latest comments from ECB President Mario Draghi, made at a meeting of central … “Loonie Trades Mixed on Latest News”
Euro Drops as Easing Bets Rise
Euro is heading lower today, thanks in large part to the fact that bets are on the rise related to the idea that the European Central Bank is likely to put into place more easing measures for the 18-nation currency. At the end of last week, ECB President Mario Draghi indicated that the central bank is prepared to use any tools it has at its disposal to boost the eurozone economy. Many Forex traders … “Euro Drops as Easing Bets Rise”
How Volatility Affects Forex Traders in Today’s Market
For those of us trading forex expert advisors or trend following strategies, we may have gotten significantly less trades or signals from our systems. Or we may find that strategies which worked well previously are under-performing, or under-trading. What could be the reason? Lowest volatility in 10 years Currency volatility continues to hover at levels not seen … “How Volatility Affects Forex Traders in Today’s Market”
Fed Chair Yellen Boosts Dollar with Jackson Hole Labor
Fed Chair Janet Yellen kicked off the Kansas City Federal Reserve’s Jackson Hole Economic Symposium with an opening speech today. Her talk was entitled, “Labor Market Dynamics and Monetary Policy” and it highlighted the Fed’s considerable uncertainty about the U.S. labor market. In her speech, Yellen said that, “As the recovery progresses, assessments of the … “Fed Chair Yellen Boosts Dollar with Jackson Hole Labor”
GOLD: Downside Threat Remains
GOLD: With GOLD remaining weak and vulnerable to the downside, further decline is likely in the new week. Support lies at the 1,257.68 level where a break will aim at the 1,230.00 level. A break will target the 1,200.00 level with a violation turning attention to the 1,180.00 level. Below here will expose the 1,160.00 … “GOLD: Downside Threat Remains”
US Policy Outlook Spurs Dollar to Weekly Gains
This week was very positive for the US dollar, allowing it to reach a new high for this year against the euro and to gain against other major peers. The major reason for the rally was the comments of US policy makers. The minutes of the latest Federal Reserve policy meeting demonstrated that US Fed members are considering raising interest rates earlier. Economic data from the United States supported the optimistic outlook for US … “US Policy Outlook Spurs Dollar to Weekly Gains”
Indonesian Rupiah Gains as Court Supports Election Outcome
The Indonesian rupiah advanced today after the country’s Constitutional Court ruled in favor of Joko Widodo, rejecting challenges against the outcome of the July presidential elections. Prabowo Subianto, another candidate for the presidential seat, challenged the voting outcome, claiming it to be a fraud. The court rejected the allegations, saying that there were no evidences of violations. With the court ruling, the rupiah lost the downward pressure from political uncertainty that was dragging … “Indonesian Rupiah Gains as Court Supports Election Outcome”
S&P Comments Bolster Indian Rupee
The Indian rupee climbed after Standard & Poor’s praised the efforts of the country’s government to reduce the budget deficit, which may improve the outlook for India’s sovereign credit rating. According to Bloomberg, S&P commented favorably on India’s attempts to cut the deficit. This should help the country’s credit rating, which currently stands at the lowest investment grade, and the agency has a negative outlook on it. The rupee also rallied with many other emerging-market … “S&P Comments Bolster Indian Rupee”