The latest PMI data out of the eurozone is weighing on the euro today. A reading that moved unexpectedly lower is weighing on the 18-nation currency as Forex traders contemplate continued slowed growth, even with the ECB’s efforts to boost the economy. Many analysts, economists, and Forex traders expected to see an improvement in eurozone PMI today, but were disappointed when the actual numbers came out. Rather than moving higher, up to 52.3, … “Eurozone PMI Data Sends Euro Lower”
Month: November 2014
Yuan Weakens as Manufacturing PMI Falls
The Chinese yuan weakened today as a private indicator of nation’s manufacturing fell more than was anticipated. The gauge was at the neutral no-growth level. The HSBC Flash China Manufacturing Purchasing Managersâ Index fell from 50.4 in October to 50.0 in November. It was the lowest level in six months. Analysts predicted a reading in the neighborhood of 50.0. A reading above 50.0 indicates growth, below indicates decline. USD/CNY rose 0.08 percent to 6.1261 … “Yuan Weakens as Manufacturing PMI Falls”
FOMC Minutes: USD unable to sell off on dovish tilt
The FOMC Meeting Minutes were more dovish than the original statement in late October. However, it is hard to say that the dollar sold off following the release. The team at BofA Merrill has 4 takeaways from the minutes: Here is their view, courtesy of eFXnews: The US dollar was little changed, on net, following the release of … “FOMC Minutes: USD unable to sell off on dovish tilt”
GBP/USD: Trading the British Retail Sales Nov 2014
British Retail Sales is considered one of the most important indicators of consumer spending. A reading that is higher than the market forecast is bullish for the British pound. Update: UK retail sales jump 0.8% – GBP/USD follows Here are all the details, and 5 possible outcomes for GBP/USD. Published on Friday at 9:30 GMT. Indicator Background … “GBP/USD: Trading the British Retail Sales Nov 2014”
US salaries are already on the rise – evidence is
Following the previous articles showing that US salaries are on the rise, here is another interesting piece showing that wages are rising at a pace that is faster than 2% y/y. The Average Hourly Earnings component of the Non-Farm Payrolls report seems to be the outlier. If it catches up, the Fed could raise rates earlier than currently … “US salaries are already on the rise – evidence is”
NZ Dollar Falls on Risk-Off Sentiment, Bounces
The New Zealand dollar fell today as the market sentiment remained negative for currencies associated with risk. Japan with its economic problems is still a major source of concerns for investors, which drives them away from higher-yielding assets. As of now, the kiwi trimmed losses versus its US counterpart and trades near the opening level against the Japanese yen. The Forex market has been in the risk-off mode since Japanese Prime … “NZ Dollar Falls on Risk-Off Sentiment, Bounces”
Yen Reaches Fresh Multi-Year Lows
The Japanese yen reached fresh multi-year lows today even though the Bank of Japan decided to keep its monetary policy unchanged, refraining from additional stimulus. It looks like negative factors are just too strong, muting any good news for the currency. The vast majority of Board members voted for keeping the size of asset purchases unchanged during today’s meeting, with only one dissenter. The central bank expanded … “Yen Reaches Fresh Multi-Year Lows”
BOE Minutes Help UK Pound
The latest minutes from the Bank of England are helping the UK pound today. The minutes seem to indicate that some members of the Monetary Policy Committee are getting nervous about inflation, and some think that could mean that the BOE is ready to take action that could support the sterling. The minutes to the last Monetary Policy Committee meeting at the Bank of England have been released, and they indicate that a hawkish tone … “BOE Minutes Help UK Pound”
US Dollar Slightly Lower, But Firm
Even though the US dollar is slightly lower against some of its major counterparts, it is still quite firm today. Many Forex traders are waiting for the release of the minutes from the latest Fed meeting to get an idea of what could be next. Greenback is trading slightly lower against its European counterparts, and the dollar index is a little lower right now. However, the losses sustained by the greenback … “US Dollar Slightly Lower, But Firm”
Pound Remains Extremely Bearish
The Great Britain pound fell today against other majors, including the US dollar and the euro. The currency also failed to rise against the Japanese yen, retreating to the opening level after the earlier rally. The sterling was unable to rally even as Britain’s inflation accelerated. The Office for National Statistics reported that the Consumer Price Index rose 1.3 percent in October. Analysts have expected the rate of expansion to stay at the September’s level of 1.2 percent. … “Pound Remains Extremely Bearish”