US Preliminary GDP is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity, and publication of Preliminary GDP could have a significant impact on the movement of EUR/USD. A reading which is better than the market forecast is bullish for the dollar. Here are all … “EUR/USD -Trading the US Preliminary GDP”
Month: May 2016
Fed Will Not Be Deterred From Raising Rates Due To
It’s an election year in the US and the contest is wide open. Will the Fed take an election holiday? No, says the team at Bank of America Merrill Lynch. Here is their view, courtesy of eFXnews: Over recent weeks a number of clients have asked: “will the Fed be deterred from raising rates due … “Fed Will Not Be Deterred From Raising Rates Due To”
Aussie Follows Kiwi in Gains
The Australian dollar followed its New Zealand counterpart in a rally during the current trading session even though fundamentals were not as supportive for the Aussie. The Australian Bureau of Statistics reported: The seasonally adjusted estimate for total construction work done fell 2.6% to $47,928.8m in the March quarter. The drop was almost two times the one forecast by analysts. Yet the Aussie did not buckle under the pressure from the poor data … “Aussie Follows Kiwi in Gains”
NZ Dollar Higher with Help from Domestic Data & Crude Oil
The New Zealand dollar rose today thanks to the positive domestic data and the rebound of prices for crude oil. The New Zealand trade surplus expanded to NZ$292 million in April from the March’s revised level of NZ$189 million. It was a total surprise to economists who were counting on a big drop to NZ$40 million. Meanwhile, crude oil rallied more than 1%, bolstering commodity-related currencies. NZD/USD rose from 0.6736 to 0.6761 as of 18:12 … “NZ Dollar Higher with Help from Domestic Data & Crude Oil”
Real Fed tightening was much bigger than 25 basis points
Markets are obsessing with the timing of the next rate hike in the US but is it really the true level of tightening? Here is their view, courtesy of eFXnews: Can we be sure the Fed has only tightened 25 basis points? In our view, the 25bp of Fed hikes reveals little about how much the … “Real Fed tightening was much bigger than 25 basis points”
GBP/USD – Trading the Second Estimate GDP
British Second Estimate GDP, one of the most important economic releases, is published each quarter. GDP measures production and growth of the economy, and is considered by analysts as one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the pound. Update: UK GDP 0.4% q/q but only 2.0% … “GBP/USD – Trading the Second Estimate GDP”
EUR/USD to 1.05 and USD/JPY to 1.25 – Goldman Sachs
The team at Goldman Sachs remain dollar bulls and release upbeat targets for the greenback against its major peers. Here is their view, courtesy of eFXnews: Our big picture views are well known. We are Dollar bulls, since we think the 300 bps tightening cycle our US economists forecast (through 2019) maps into a 15 … “EUR/USD to 1.05 and USD/JPY to 1.25 – Goldman Sachs”
Hungarian Forint Higher vs. Euro After Central Bank Announcement
The Hungarian forint gained on the euro and was stable against the US dollar today as Hungary’s central bank signaled about an end to its monetary easing cycle. The Magyar Nemzeti Bank announced today that it is cutting its main interest rate by 15 basis points to 0.9%. Yet the central bank signaled that the rates are likely to remain stable for a while after the cut. The bank said in the statement: In the Councilâs assessment, … “Hungarian Forint Higher vs. Euro After Central Bank Announcement”
Economic Sentiment Doesn’t Look Good for Euro
The euro fell against most currencies today, including the US dollar and the Swiss franc, though not the Japanese yen. The indicators released during the current trading session showed that the economic sentiment deteriorated sharply this month. The ZEW Indicator of Economic Sentiment for Germany dropped from 11.2 to 6.4 in May. The Indicator of Economic Sentiment for the Eurozone slid from 21.5 to 16.8. Economists were promising an increase for both indicators. The report explained … “Economic Sentiment Doesn’t Look Good for Euro”
BOC could weigh on CAD – 2 Reasons – BofA Merrill
The Canadian economy is not enjoying the weak Canadian dollar and with reduced oil production, the higher prices of the black gold are not really helpful. But these are not the only reasons for a cautious. There are two more according to the team at Bank of America Merrill Lynch: Here is their view, courtesy of … “BOC could weigh on CAD – 2 Reasons – BofA Merrill”