Analysts and traders have been expecting the euro to drop for quite some time now. Forecasts for a lower euro have not been met, as the 19-nation currency continues to show resiliency. Today, though, the euro finally appears to be showing signs of weakness. Euro is heading lower today against its major counterparts as better news and other economies help other currencies. European leaders have been trying to figure out … “Euro Finally Shows Signs of Weakness”
Month: March 2016
EUR/USD: Trading the US Final GDP
US Final GDP is a key release and is published each quarter. GDP reports measure production and growth of the economy, and are considered by analysts as one the most important indicators of economic activity. A reading which is higher than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes for … “EUR/USD: Trading the US Final GDP”
Japanese Yen Lower Against Rivals
The Japanese yen fell against its major rivals today after the Bank of Japan released the summary of opinions voiced on the last policy meeting. Japanese policy makers showed disagreement about the necessity of keeping interest rates in the negative territory. Some argued in favor of removing them: Withdrawal from the Bank’s negative interest rate policy is preferable. Other argued against such a move: Undoing the negative interest rate policy is … “Japanese Yen Lower Against Rivals”
Pound Stabilizes as Retail Sales Beat Expectations
The Great Britain pound stabilized today following yesterday’s losses. One of the possible reasons for the decent performance was the better-than-expected retail sales report. Britain’s retail sales dropped 0.4% in February from January. While the reading was not particularly good by itself, it was better than the predicted drop by 0.7%. This helped the sterling to halt its decline, though the currency remains under pressure from the Brexit fears. GBP/USD … “Pound Stabilizes as Retail Sales Beat Expectations”
The Case For Staying Tactically Bearish On USD – Credit
The US dollar enjoyed a recovery, enjoying some hawkish Fed speak for a change. However, the team at Credit Suisse still sees the down side: Here is their view, courtesy of eFXnews: The sequence of volatile market reactions to central bank policy easing initiated by the BOJ and furthered by ECB had an eventful third … “The Case For Staying Tactically Bearish On USD – Credit”
Hungarian Forint Down After Surprise Interest Rate Cut
The Hungarian forint traded lower today after yesterday’s surprise from the nation’s central bank. The Magyar Nemzeti Bank (the central bank of Hungary) lowered its main interest rate from 1.35% to 1.20% yesterday. The bank also cut other rates, including the overnight deposit rate that was reduced to -0.05%. This means that the Hungarian central banks joined the company of central banks with negative interest rates. The vast … “Hungarian Forint Down After Surprise Interest Rate Cut”
Dollar Goes Higher as Fed Members Talk About April Rate Hike
The US dollar was pushing higher today as the outlook for monetary tightening turned into a more hawkish one after comments of Federal Reserve officials. Markets have discounted an interest rate hike in the near future after the Fed issued a dovish statement and reduced the expected pace of monetary tightening last week. Yet the market sentiment shifted after several officials talked about necessity of a rate increase, perhaps as soon as the next month. … “Dollar Goes Higher as Fed Members Talk About April Rate Hike”
CAD: Canadian Budget’s New Measures To Allow BoC To Stay
The relatively new Canadian government led by Justin Trudeau presented a new budget with a significant deficit. What does this mean for CAD? This could have a positive impact: Here is their view, courtesy of eFXnews: The federal government released its 2016 budget today. The fiscal deficit for FY2016-17 is expected at C$29.4bn (1.5% of GDP), roughly in … “CAD: Canadian Budget’s New Measures To Allow BoC To Stay”
EUR/USD – Next Targets – SEB
What’s net for EUR/USD after the Fed, the ECB and the Brussels bombings? Here are the new targets from SEB: Here is their view, courtesy of eFXnews: Almost two weeks ago the European Central Bank stated clearly that scope for further rate cuts was very limited. Some interpreted this remark as signalling a change in … “EUR/USD – Next Targets – SEB”
Swiss Franc Rallies on Supportive Fundamentals
The performance of the Swiss franc was rather anemic today, but right now the currency is demonstrating attempts to rally. It should not be a surprise as both domestic fundamentals and the general market sentiment should be supportive for the currency. The ZEW-CS-Indicator for the economic sentiment in Switzerland rose from -5.9 to 2.5 in March. Additionally, the news about bombing in Brussels resulted in a surge of risk aversion. The franc struggled to rally despite the supportive fundamentals. But … “Swiss Franc Rallies on Supportive Fundamentals”