While the pound did make a huge rebound in the aftermath of the tragic killing of MP Jo Cox, Brexit is still a big threat. Here are two opinion about the potential BOE action and the range for next week. Fasten your seatbelts: Here is their view, courtesy of eFXnews: GBP: BoE To Cut Interest Rates … “GBP/USD: Range and projected BOE action”
Month: June 2016
Pound Rebounds After Attack on Pro-EU Lawmaker
The Great Britain rose today following the attack on the pro-EU lawmaker that resulted in speculations about possible rise of “Bremain” votes. British Member of Parliament Jo Cox, a vocal supporter of Britain staying in the European Union, was shot dead yesterday. The tragic event resulted in speculations that emotional response will push some Britons to the “Remain” camp in the voting for the future of the United Kingdom. The EU referendum campaigns were suspended after the news. … “Pound Rebounds After Attack on Pro-EU Lawmaker”
Australian Dollar Weak Despite Supportive Employment Data
The Australian dollar dropped on Thursday even though economic data released from Australia during the session was positive. The currency touched the lowest level in four years versus the yen. Australian employment increased by 17,900 in May, exceeding the analysts’ forecast of 14,900. The previous month’s growth received a big negative revision from 10,800 to just 800. The unemployment rate remained steady at 5.7%. The Aussie remained soft despite the positive report, though … “Australian Dollar Weak Despite Supportive Employment Data”
BOJ in July – fresh easing is on the cards
USD/JPY took a deep dive to 104 and below on the lack of action from the Bank of Japan. This may well change next month, with fiscal and monetary stimulus in play. Here are two opinion from Barclays and from BNP Paribas: Here is their view, courtesy of eFXnews: We Still Expect Further BoJ Easing … “BOJ in July – fresh easing is on the cards”
USD/CAD: Trading the Canadian Core CPI
Canadian Core CPI, is considered on of the most important inflation indicators. Core CPI excludes the most volatile items which are included in CPI, hence it is considered a more reliable measurement of inflation. A reading that is higher than the market forecast is bullish for the Canadian dollar. Here are all the details, and … “USD/CAD: Trading the Canadian Core CPI”
Projected Levels For Major FX Pairs in 3M Under
The impact of the EU Referendum goes well beyond the shores of the UK but impacts many other currencies. Here are the forecasts from Credit Agricole, with a thorough explanation: Here is their view, courtesy of eFXnews: The initial impact of a Brexit on EUR should be negative as fears about the growth outlook and the … “Projected Levels For Major FX Pairs in 3M Under”
Swiss Franc Falls vs. Dollar, Flat vs. Euro
The Swiss franc fell against the US dollar and was little changed versus the euro after the Swiss National Bank left its monetary policy unchanged. The SNB made the same policy decision as the BoJ, namely keeping policy without change. The central bank continued to voice concern about the strength of the franc, meaning that interventions on the currency markets will likely continue. One of the reasons for the SNB to stay passive was fear of the possible … “Swiss Franc Falls vs. Dollar, Flat vs. Euro”
Yen at Multi-Year Highs as BoJ Stands Pat
The Japanese yen rallied to multi-year highs against its major peers after the Bank of Japan made no changes to its monetary policy. The BoJ made a decision not to expand its already substantial monetary stimulus. With the policy meeting out of the way and not easing, traders now feel safe buying the currency. Japanese policy makers are certainly unhappy with the yen’s rally, and this means that some sort … “Yen at Multi-Year Highs as BoJ Stands Pat”
Canadian Dollar Doesn’t Join Rally vs. US Dollar
Most currencies rallied against the US dollar after the Federal Reserve’s policy announcement, but the Canadian dollar did not join the parade. The explanation for this is simple: prices for crude oil fell and dragged the Canadian currency along with them. Market participants remain cautious ahead of the referendum in the United Kingdom, preferring to avoid unnecessary risk. Such considerations make them less willing to buy assets linked to economic growth, … “Canadian Dollar Doesn’t Join Rally vs. US Dollar”
Dollar Trades Lower After Fed Makes Policy Announcement
The US dollar fell against most currencies after the policy announcement from the Federal Reserve. The drop was not especially big as the Fed did not surprise markets very much with its announcement. The US central bank made no changes to its monetary policy, surprising no one. The vote was unanimous. It is interesting to note that Kansas City Fed Governor Esther George, who was … “Dollar Trades Lower After Fed Makes Policy Announcement”