The US dollar has been on the back foot against safe haven currencies and gaining only a bit against commodity currencies and the pound. Yet this may turn around, perhaps after some time. The team at Deutsche Bank explains: Here is their view, courtesy of eFXnews: Policy divergence (hiking Fed, other central banks easing) was to … “USD Strength To Resume Even If This May Not Be”
Month: February 2016
Australian Dollar Remains Below Opening Level After Trimming Losses
The Australian dollar trimmed today’s losses against its major rivals, almost erasing them against the US currency, but remained below the opening level as the market sentiment was unfavorable to currencies related to commodities and growth. Futures for oil fell almost 3 percent during the current session, and US crude dropped below the $30 per barrel level. This intensified concerns about global growth as basically all major economies … “Australian Dollar Remains Below Opening Level After Trimming Losses”
Mexican Peso Touches Record Low vs. Dollar
The Mexican peso declined today, reaching the all-time low versus the US dollar, as risk aversion continued to dominate markets and crude oil extended its decline, hurting currencies associated with risk. Fundamentals do not look that bad for the peso as Mexico has a solid economy. As analysts point out, the Mexican peso suffers from its high liquidity (being one the most traded currencies, especially compared to those of other … “Mexican Peso Touches Record Low vs. Dollar”
GBP/USD: Trading the British Manufacturing Feb 2016
British Manufacturing Production, a key indicator, provides analysts and traders with a snapshot of the health of the UK manufacturing sector. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Wednesday at 9:30 GMT. Indicator Background The … “GBP/USD: Trading the British Manufacturing Feb 2016”
USD: History Repeats Itself So Elegantly – Deutsche Bank
The current moves in the US dollar seem to resemble a behavior in the not-so-distant past. What can we learn going forward? ?he team at Deutsche Bank explains: Here is their view, courtesy of eFXnews: The bullets and charts below show how history is partly repeating itself in interesting ways.Figure 1 shows the current DXY … “USD: History Repeats Itself So Elegantly – Deutsche Bank”
Dollar Struggles as Fed Monetary Tightening in Question
The US dollar gained on the Great Britain pound but retreated versus the euro and the Japanese yen on Monday as traders continue to question the ability of the Federal Reserve to continue its interest rate hike cycle this year. The Fed has raised interest rates in December for the first time in nearly a decade. Some economists were arguing that was not a good decision as the US economy is not in shape yet to endure tighter monetary … “Dollar Struggles as Fed Monetary Tightening in Question”
Canadian Dollar Fails to Hold onto Gains
The Canadian dollar failed to hold onto its earlier gains and dropped by the end of Monday’s trading session due to the rout of crude oil prices. Crude oil was demonstrating impressive performance last week thanks to speculations about a potential deal among oil producers to reduce output, thus easing oversupply on the market. The loonie was marching along with oil prices to the upside. Yet now market analysts speculate that the deal … “Canadian Dollar Fails to Hold onto Gains”
Euro Heads Higher, Even as Global Stocks Tumble
Euro is heading higher today, even though global stocks are falling and there is some risk aversion entering the markets. Gold prices are on the rise, though, and that seems to be providing a bit of a boost to the 19-nation currency. Euro is getting some help today, thanks in large part to higher gold prices. Gold is moving higher, gaining more than $35 an ounce as global stocks plunge … “Euro Heads Higher, Even as Global Stocks Tumble”
Rupee Weakens as India’s Economic Growth Slows
The Indian rupee fell against the US dollar today among concerns about India’s slowing economic growth and the bout of risk aversion on the Forex market. India’s gross domestic product expanded 7.3 percent in the December quarter compared to 7.7 percent growth in the September quarter. The data, as well as the general risk-negative sentiment of traders, led to the drop of the rupee. Despite the slowdown, India remains one of the fastest-growing economies in the world. USD/INR ticked up from … “Rupee Weakens as India’s Economic Growth Slows”
Global Stocks Sink Benefiting Japanese Yen
The Japanese yen rallied today as the drop of crude oil led to a rout of global stocks which in turn resulted in risk aversion and demand for safe haven assets. Crude oil has attempted to rally intraday but failed to keep gains and retreated below the opening level. European stocks dropped more than 2 percent as a result, joined by equities of other regions in a decline. The yen profited from this, getting additional support from … “Global Stocks Sink Benefiting Japanese Yen”