Negative interest rates are in abundance now, with new central banks adding them. What is the exception? Here is the answer from Deutsche Bank: Here is their view, courtesy of eFXnews: Central banks’ experiment with negative interest rates continues apace this year, with the BoJ the latest to have dipped a toe in the water … “There Is One Exception In Negative Rates Economies: How”
Month: April 2016
Dollar Soft amid Dovish Outlook for Fed Policy
The US dollar fell against some other currencies today as traders remained concerned that the Federal Reserve will not be able to raise interest rates as fast as it has initially planned. The greenback was especially vulnerable against commodity-geared currencies and the Great Britain pound, faring better against safe currencies and the euro. Previously, prospects for monetary tightening was the main source of the dollar’s strength. Yet with the Fed’s cautious … “Dollar Soft amid Dovish Outlook for Fed Policy”
USD/JPY Bounces from Lowest in 17 Months
The Japanese yen retreated from the highest level in almost a year and a half against the US dollar it has reached earlier today. The currency fell against other most-traded peers as well. Gains of European stocks and comments from Japanese officials stopped the yen’s rally. The latter fueled speculations that Japan’s policy makers are going to intervene in order to weaken the currency. Nevertheless, demand for safety remains strong, meaning that the yen … “USD/JPY Bounces from Lowest in 17 Months”
Australian Dollar Starts Week with Gains
The Australian dollar rose today even though domestic macroeconomic data was somewhat disappointing. As for important economic reports outside of Australia, China’s data was mildly supportive to the currency. The number of Australia’s home loans rose 1.5% in February — not a bad reading by itself but below the one that analysts had promised (2.1%). China’s Consumer Price Index rose 2.3% in March from a year ago, the same as in the preceding month. … “Australian Dollar Starts Week with Gains”
US ‘Sticky’ Core CPI At Post-Recession Highs; USD To
The US dollar had quite a few negative weeks, mostly due to dovishness coming out of the Fed, and in particular from Chair Yellen. Nevertheless, the data-dependent Fed may have reasons to look a bit more optimistic, and this could support the greenback: Here is their view, courtesy of eFXnews: Chair Yellen mentioned it, and … “US ‘Sticky’ Core CPI At Post-Recession Highs; USD To”
Yen Ends Week Strongest on FX Market
The Japanese yen was a powerhouse of the Forex market during the past week. While the currency paused its rally by the weekend, it still ended trading with huge gains against other most-traded currencies. The week has started with risk aversion due to the drop of crude oil prices and global stocks. This helped the yen to log a big rally, and the currency reached multi-year highs after Prime Minister Shinzo Abe suggested … “Yen Ends Week Strongest on FX Market”
Canadian Dollar Gains on Crude Oil Rally & Employment Data
The Canadian dollar rallied today, propelled higher by the amazing employment data and the rally of crude oil. The falling housing starts were unable to deter the currency from rising. Canada’s employment increased by 40,600 in March from February, exceeding analysts’ predictions by about four times. What is even better, the vast majority of the jobs were full-time. The unemployment rate fell from 7.3% to 7.1% unexpectedly. Meanwhile, housing starts declined to 204,251 … “Canadian Dollar Gains on Crude Oil Rally & Employment Data”
Sterling Trims Gains as UK Data Weighs, Rebounds
Macroeconomic indicators released from the United Kingdom today were bad across the board. This did not prevent the Great Britain pound from rising against the US dollar and the euro (though the currency slid against the Japanese yen) but made the sterling trim its gains. Currently, it looks like the sterling is going to regain its upward momentum. Manufacturing production slumped 1.1% in February from the previous month, … “Sterling Trims Gains as UK Data Weighs, Rebounds”
Yen Weaker After Aso Suggests Intervention
The Japanese yen eased today from the multi-year highs reached yesterday. The currency weakened after comments of Finance Minister Taro Aso that suggested a possibility of an intervention. As of now, the yen is moving back up but remains below the opening level. Aso made remarks that were interpreted by the market as an intervention talks. Yet experts reminded that the Group of Twenty agreed to avoid devaluing their currencies directly, meaning that … “Yen Weaker After Aso Suggests Intervention”
The Great JPY Reversal – Morgan Stanley
The Japanese yen is undoubtedly the king of the hill this week, with seemingly unstoppable gains. Here is the view from Morgan Stanley on these moves: Here is their view, courtesy of eFXnews: Over recent weeks, the EUR moved moderately higher, while the JPY accelerated sharply, with USDJPY now nearing our USDJPY 105 year-end target. The negative reaction … “The Great JPY Reversal – Morgan Stanley”