The US dollar has bounced back on “risk off” with the chances of Brexit rising. What’s next for the USD? The team at Credit Agricole analyzes. Here is their view, courtesy of eFXnews: The USD sold off across the board after much weaker May NFP than expected. The market reaction suggests that investors do not necessarily … “USD: An Early Warning Signal Or A Buying Opportunity? –”
Month: June 2016
Pound Logs Weekly Losses as Brexit Threat Rises
The Great Britain pound weakened against its major rivals during the past trading week as fears of the Brexit reemerged. The weakness spilled over to the euro, which would also suffer in case the United Kingdom exits the European Union. The week before, polls were showing that votes in favor staying in the EU were prevailing. Yet this week, it looked like that those who prefer to leave had upper hand. … “Pound Logs Weekly Losses as Brexit Threat Rises”
CAD Rises on Employment Data, Loses Gains on Crude Oil Drop
The Canadian dollar jumped after the positive employment report but has started to go back down immediately afterwards. The currency preserved its gains versus the euro but lost them against the US dollar and the Japanese yen. Canadian employment grew by 13,800 in May from April, far exceeding the analysts’ consensus forecast of 3,100. The unemployment rate went down from 7.1% to 6.9% while experts predicted no change. The Canadian … “CAD Rises on Employment Data, Loses Gains on Crude Oil Drop”
Russian Ruble Falls After Interest Rate Cut
The Russian ruble fell versus the US dollar today after Russia’s central bank cut its main interest. The Bank of Russia reduced its key rate from 11% to 10.5% today. The central bank was optimistic in its outlook: The Board of Directors notes the positive trends of more stable inflation, decreased inflation expectations and inflation risks against the backdrop of imminent growth recovery in the economy. Nevertheless, prospects for additional cuts … “Russian Ruble Falls After Interest Rate Cut”
EUR/USD En-Route To 1.16 on Fed – BNPP
The US dollar suffered a blow from the bad NFP and despite the recent recovery, the team at BNP Paribas do not see any strength for the greenback. And, they set a target for EUR/USD: Here is their view, courtesy of eFXnews: The weak May employment report has diminished the significance of Wednesday’s FOMC meeting next week, … “EUR/USD En-Route To 1.16 on Fed – BNPP”
Improved UK Trade Deficit Doesn’t Help Sterling Much
Even though the UK trade deficit improved for April, sterling isn’t seeing a huge improvement against some of its major counterparts. While the UK pound is gaining ground against the euro, it is faltering against the dollar and the yen. Right now, everything is about the upcoming EU membership referendum and economic data is getting lost in the shuffle. Right now, there is a lot of focus on economic data. The UK … “Improved UK Trade Deficit Doesn’t Help Sterling Much”
Euro Drops on Warnings of Long-Term Economic Damage
Euro is dropping today, losing ground against most of its major counterparts as ECB President Mario Draghi warns that recent years might have taken a long-term toll on the economic condition of the 19-nation currency bloc. Even though the latest economic news out of Germany is encouraging, the euro is struggling today in Forex trading. ECB President Mario Draghi shared remarks at the Brussels Economic Forum, expressing concerns … “Euro Drops on Warnings of Long-Term Economic Damage”
Trading Sterling Around The Referendum Outcome – Goldman Sachs
The EU referendum is just around the corner and opinion polls are already moving the pound on a daily basis, overshadowing economic indicators. What is the trade? Not necessarily GBP/USD – there are other crosses as well: Here is their view, courtesy of eFXnews: As was the case for all major currencies, Sterling went up in … “Trading Sterling Around The Referendum Outcome – Goldman Sachs”
Poor Market Sentiment Attracts Traders to Japanese Yen
The Japanese yen gained today, rising to the multi-year high against the euro, as the market sentiment was not favorable to risky assets, driving investors to the safety of Japan’s currency instead. Yesterday, the World Bank slashed its forecast for global growth in 2016 from 2.9% to 2.4%. Meanwhile, the threat of the Brexit continues to worry market participants. And on top of that, today’s data from China revealed unexpected slowdown of inflation in the world’s second biggest economy. … “Poor Market Sentiment Attracts Traders to Japanese Yen”
China’s Economic Data Mixed, Aussie Trades Lower
The Australian dollar fell against the US dollar and the Japanese yen today after the release of mixed economic data from China, Australia’s biggest trading partner. China’s inflation fell unexpectedly in May as the Consumer Price Index rose just 2% according to the National Bureau of Statistics of China while economists had expected the same 2.3% rate of growth as in April. On the bright side, the Producer Price Index fell 2.8% instead of the predicted 3.1%. … “China’s Economic Data Mixed, Aussie Trades Lower”