The economists’ sentiment was positive lately due to the rally of global stocks, the rise of crude oil and the relatively positive trade balance report from China. Yet in a surprising twist, this was helping the US dollar, not hindering it. Usually, the US currency firms during times of troubles and softens when traders feel optimistic. But today the greenback was behaving in an opposite manner. The reasoning was that the good news would … “US Dollar Stages Rally amid Positive Market Sentiment”
Month: April 2016
Canadian Dollar Firms After BoC Meeting
The Bank of Canada left its interest rates unchanged during the Wednesday’s policy meeting. The decision made the Canadian dollar firmer, though it was unable to outperform its US rival. As was expected, the BoC left its key overnight rate at 0.5%, keeping other interest rates without change as well. The central bank mentioned in its statement the recent pickup of prices for crude oil and other commodities: Prices of oil and other … “Canadian Dollar Firms After BoC Meeting”
AUD Retreats vs. USD, Keeps Gains vs. EUR
The Australian dollar gained today due to the positive trade balance report from China. As of now, the currency has lost its gains versus the US dollar but continued to rally against the euro. China’s trade surplus surged to $29.86 billion in March from $3.08 billion a year ago. While imports decreased, the decline was not as big as economists had been afraid of. Initially, the good news helped currencies linked … “AUD Retreats vs. USD, Keeps Gains vs. EUR”
Eurozone Production Drops, Bringing Euro Down
Euro is lower today, dropping following the report of the latest industrial production numbers. Some analysts have believed that the euro is overbought, especially against the US dollar, and this might be the beginning of a crash for the 19-nation currency. According to the latest data from Eurostat, February industrial production output fell 0.8 per cent, which is more than the expected decline of 0.7 per cent. This is the biggest … “Eurozone Production Drops, Bringing Euro Down”
AUD/USD: Trading the Australian Employment Change
Australian Employment Change, which is released monthly, provides a snapshot of the health of the Australian labor market. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are the details and 5 possible outcomes for AUD/USD. Published on Thursday at 1:30 GMT. Indicator Background Job creation is one … “AUD/USD: Trading the Australian Employment Change”
Yen Falls as Taro Aso Talks About Intervention
Japan’s Finance Minister Taro Aso signaled that an intervention into the currency market in order to weaken the Japanese yen would not be against the agreement of the Group of Twenty. Unsurprisingly, the yen dropped after such remarks. Aso said that the G20 agreed to allow an intervention in order to prevent “one-sided” and “speculative” moves: We would take necessary steps under certain circumstances if one-sided and speculative moves were observed. I believe … “Yen Falls as Taro Aso Talks About Intervention”
Huge Gains of Crude Oil Benefit Canadian Dollar
Crude oil demonstrated big gains during the Tuesday’s trading session, and so did the Canadian dollar — the currency that is closely tied to crude. Futures for crude oil rallied more than 4% today. The rally was a result of rumors that Saudi Arabia and Russia have achieved an agreement about production freeze. Now, traders wait for the meeting of major oil-producing countries in Doha, Qatar, on April 17, where producers will … “Huge Gains of Crude Oil Benefit Canadian Dollar”
Euro Set To Continue Higher; Can The ECB Remain
EUR/USD is scratching the highs every day, but still seems a bit shy of moving even higher. What’s next? Here is the view from Danske: Here is their view, courtesy of eFXnews: We expect the continued low inflation in the euro area to eventually trigger additional easing from the ECB, but we do not expect … “Euro Set To Continue Higher; Can The ECB Remain”
Brazilian Real Fails to Rally vs. Greenback
The Brazilian real failed to gain against the US dollar today even after the release of helpful retail sales data. The strength of the greenback and the report from the International Monetary Fund were the reasons for the currency’s underperformance. Brazilian retail sales rose unexpectedly in February. Yet this provided the real little help against the dollar as the greenback was strong even against the major currencies, let alone risky ones. Not helping the matter was … “Brazilian Real Fails to Rally vs. Greenback”
Pound Rises After Inflation Report, Struggles to Maintain Gains
The Great Britain pound rose after the release of a positive inflation report from the United Kingdom today. Currently, the sterling struggles to maintain gains, backing off against its major rivals and even falling back to the opening level against the US dollar. The Consumer Prices Index rose 0.4% in March from February and 0.5% from the same period in previous year. Both readings were above analysts’ expectations. The currency found support … “Pound Rises After Inflation Report, Struggles to Maintain Gains”