Despite the Greek approval of the austerity proposals, it is not 100% that we will get a deal. In any scenario, the team at Goldman Sachs explains why there is a strong case on the downside for EUR/USD: Here is their view, courtesy of eFXnews: The uncertainty around the negotiations between Greece and its creditors … “Case For EUR/USD Downside Is Strong With Or Without”
Month: July 2015
Euro Ends Trading with Big Gains Ahead of Key Weekend
The euro surged on Friday, ending 1 percent higher against the US dollar and more than 2 percent higher versus the Japanese yen. The coming weekend will likely determine the future (or lack thereof) of Greece in the eurozone. Greek Prime Minster Alexis Tsipras submitted a new set of proposals for the European creditors. The European Union officials will review them over the weekend and will make decision whether the proposed austerity measures are … “Euro Ends Trading with Big Gains Ahead of Key Weekend”
Canadian Dollar Supported by Employment Data
The Canadian dollar leaped against the US dollar and the Japanese yen (though fell versus the euro) after the release of employment data from Canada. While the report was not good strictly speaking, it was not as bad as economists had feared. Canadian employment shrank by 6,400 jobs in June (almost zero percent) compared to the median forecast of a 9,100 drop. The decrease followed the hefty gain by 58,900 in May. The unemployment rate held … “Canadian Dollar Supported by Employment Data”
Pound Rallies, Boosted by UK Data & Market Sentiment
The Great Britain pound rallied today, getting help both from domestic macroeconomic reports and the positive general market sentiment. The currency jumped almost 2 percent against the Japanese yen. The UK trade balance showed a deficit of £8.0 billion in May, shrinking instead of rising as was predicted by analysts. It was the smallest trade gap since June 2013. Not all reports were good, though, as construction output contracted … “Pound Rallies, Boosted by UK Data & Market Sentiment”
Australian Dollar Continues to Rally, Ignoring Negative Domestic Data
The Australian dollar continued to rally today even though domestic macroeconomic data was rather detrimental to the currency. It looks like the trading environment continues to favor risky growth-related currencies. Australian home loans dropped 6.1 percent in May on a seasonally adjusted basis — almost two times the median analysts’ estimate. It was the biggest drop since December 2009. Still, the currency extended yesterday’s rally, most likely … “Australian Dollar Continues to Rally, Ignoring Negative Domestic Data”
Here Is How To Trade Greece’s End-Game In FX – BNPP
We have heard about the wide Greek proposals, that open the way for a deal with creditors. However, nothing is 100% certain. Here is how to trade the EU Summit, which has turned into a binary event, according to BNP Paribas: Here is their view, courtesy of eFXnews: In its last week’s FX note to clients, BNP … “Here Is How To Trade Greece’s End-Game In FX – BNPP”
EUR/USD to 1.05 in 3 months, 0.98 in 12 months
Greece has submitted its proposal, which is one that the creditors will find hard to reject. Nevertheless, there are good reasons to see the euro falling. Here are 4 reasons from the team at Credit Suisse: Here is their view, courtesy of eFXnews: While Greece has so far not proven a powerful negative for the … “EUR/USD to 1.05 in 3 months, 0.98 in 12 months”
Canadian Dollar Follows Commodities in Rally
Trading environment was favorable to risky asses today, helping commodities to rally. This, in turn, led to gains for currencies linked to prices for raw materials. The Canadian dollar was among those currencies. Many commodities rallied on Thursday, including crude oil that jumped more than 2 percent. Moves of the Canadian currency are strongly correlated with performance of crude, meaning that the current rally was not a surprise. There … “Canadian Dollar Follows Commodities in Rally”
Pound Gains After BoE Makes Policy Announcement
The Great Britain pound edged higher against the US dollar and the Japanese yen today after the Bank of England announced that it is leaving its monetary policy unchanged. The sterling’s gains versus the greenback were limited while the rally versus the yen was rather substantial. The BoE announced today: The Bank of Englandâs Monetary Policy Committee at its meeting on 8 July voted to maintain Bank Rate at 0.5%. The Committee also … “Pound Gains After BoE Makes Policy Announcement”
Australian Dollar Rebounds from Multi-Year Lows
The Australian dollar advanced today as domestic employment data was surprisingly positive, especially compared to rather pessimistic forecasts. This allowed the currency to bounce from multi-year lows it had touched against the US dollar and the Japanese yen previously. Australian employment rose by 7,300 in June from the previous month while experts promised a drop by 2,100. The May’s huge increase was revised slightly from 42,000 to 40,000. The unemployment increased … “Australian Dollar Rebounds from Multi-Year Lows”