The fallout from the dovish Fed decision continues and some see a long term change to the downside. What’s next? Here is the analysis from Morgan Stanley: Here is their view, courtesy of eFXnews: More short-term USD weakness. “The dovish Fed – discouraging USD bulls – has led to a de-positioning move supporting the once … “USD: The Pain Trade – Morgan Stanley”
Month: March 2016
Is The USD Rally Over For Good Or Over For Now? – SocGen
The Fed took the extreme dovish path, hitting the dollar hard. Is this is an even more significant change? The team at SocGen weighs in: Here is their view, courtesy of eFXnews: The term ‘Currency Wars’ was used by Brazil’s erstwhile Finance Minister, Guido Mantega, in September 2010 in response to moves by some (Asian) countries … “Is The USD Rally Over For Good Or Over For Now? – SocGen”
UK Pound Higher, Even After Productivity Forecast Downgrade
UK pound is mostly higher today against its major counterparts, even after the Office for Budget Responsibility (OBR) cut its forecasts for productivity. However, many analysts expect that pounds to weaken in upcoming weeks and months as the Bank of England waits to raise rates until after the Brexit issue is resolved. The OBR revised its workforce productivity forecasts down to 2.0% from an earlier 2.4%. This revision comes … “UK Pound Higher, Even After Productivity Forecast Downgrade”
Norwegian Krone Rises, Ignoring Interest Rate Cut
The Norges Bank was yet another central bank to hold policy meeting today. The bank made a decision to cut its key interest rate. Surprisingly enough, the Norwegian krone gained against its major peers despite the news. Norway’s central bank held a policy meeting today, but unlike the Swiss National Bank it made changes to its policy. Namely, the bank cut its main interest rate by 25 … “Norwegian Krone Rises, Ignoring Interest Rate Cut”
14 Things You Never Knew About the GBP-USD Currency Pair
The GBP-USD FX pair is one of the most popular and longest running exchanges in fx trading history. We study its daily fluctuations meticulously, but what are some of its lesser known historical facts? 1. Traders call the GBP-USD pair ‘cable’, referring to the submarine telegraph cable placed between the United States and Great Britain … “14 Things You Never Knew About the GBP-USD Currency Pair”
Swiss Franc Mixed After SNB Refrains from Lowering Rates Further
Quite a few central banks scheduled their policy for the current trading session, and the Swiss National Bank was among them. The bank refrained from changing its monetary policy. The Swiss franc was mixed after the announcement, rising against the US dollar but falling versus the euro. The SNB left its interest rates stable, refraining from lowering them deeper into the negative territory. The central bank signaled that … “Swiss Franc Mixed After SNB Refrains from Lowering Rates Further”
EUR/USD: Trading the UoM Consumer Sentiment Index
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy and is bullish for the US dollar. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday at 14:00 GMT. Indicator … “EUR/USD: Trading the UoM Consumer Sentiment Index”
GOLD: Sets Up To Resume Broader Uptrend
GOLD: With GOLD rallying on Wednesday, we expect more upside pressure in the days ahead. to hold on to its downside pressure, further decline is envisaged. On the downside, support comes in at the 1,220.00 level where a break will turn attention to the 1,210.00 level. Further down, a cut through here will open the … “GOLD: Sets Up To Resume Broader Uptrend”
‘Marching In Place’: What’s Next For The USD Post-FOMC?
The Fed went dovish (here are 5 points) and the dollar certainly tumbled. What’s next for the greenback? Here is the view from Bank of America Merrill Lynch: Here is their view, courtesy of eFXnews: FOMC maintains a dovish stance. The Federal Open Market Committee (FOMC) not only did not hike today as widely expected, but … “‘Marching In Place’: What’s Next For The USD Post-FOMC?”
Canadian Dollar Surges After Fed
The Canadian dollar demonstrated a strong rally today, joining other currencies that have gained on the US dollar. There were several reasons for the rise: the Federal Reserve policy announcement, rising crude oil prices and solid manufacturing sales in Canada. The loonie and other currencies (especially commodity-related ones) demonstrated strong gains against the greenback after the Fed scaled down its outlook for the pace of monetary tightening. It helped the Canadian dollar … “Canadian Dollar Surges After Fed”