We heard from the Fed: no rate hike and a very cautious tone. The US dollar did not fall too much as it remains the cleanest shirt in the dirty pile and almost all the focus is on the EU Referendum. Nevertheless, we must note the significantly dovish tone heard here, which is perhaps more … “What was dovish about the Fed in 5 points”
Month: June 2016
FOMC is dollar negative – CIBC
The Fed made its decision: no change and sounded quite dovish. Here is the quick insight from CIBC: Here is their view, courtesy of eFXnews: With the ‘Brexit’ vote looming and employment hitting a soft patch, the Federal Reserve chose to leave interest rates unchanged today. Indeed, the Fed chose to reference the recent weakness … “FOMC is dollar negative – CIBC”
Australian Dollar Rises in Spite of Economic Data
The Australian dollar gained against its most-traded peers today even though Australia’s economic data was not particularly helpful to the currency. The Westpac-Melbourne Institute Consumer Sentiment dropped 1% in June. The report was not necessarily that awful as Westpac Senior Economist, Matthew Hassan, commented: Coming after an 8.5% surge in May, the small decline in June mostly represents a consolidation at improved levels. With data being not particularly … “Australian Dollar Rises in Spite of Economic Data”
NZ Dollar Up as Current Account Turns Positive
The New Zealand dollar rose today, getting help from positive domestic macroeconomic data. The New Zealand current account logged a surplus of NZ$1.31 billion (not seasonally adjusted) in the March quarter of 2016 that has exceeded analysts’ expectations. Now, traders wait for today’s meeting of the US Federal Reserve and tomorrow’s GDP report from New Zealand. Experts predict that the data will show that growth of the New Zealand … “NZ Dollar Up as Current Account Turns Positive”
Can The Fed Change The Dollar’s Fortunes? – BofA Merrill
The Federal Reserve convenes as the markets are following every Brexit poll. Nevertheless, this is still a meaningful event. Here is the view from Bank of America Merrill Lynch: Here is their view, courtesy of eFXnews: Between weaker May jobs data and uncertainty ahead of the UK referendum on EU membership, the markets have completely … “Can The Fed Change The Dollar’s Fortunes? – BofA Merrill”
Dollar Stronger amid Fears, Yen & Swissie Hold Ground
The US dollar gained on the euro during Tuesday’s trading as Brexit fears were driving the shared currency of the eurozone down. The greenback also gained on the Great Britain pound and commodity currencies, but fared worse against safe haven currencies like the Japanese yen and the Swiss franc. Market participants are nervous amid uncertainty about the future of Great Britain and the European Union. The resulting negative market sentiment made currencies associated with … “Dollar Stronger amid Fears, Yen & Swissie Hold Ground”
Brexit Votes Lead in Polls, GBP Extends Run to Downside
Talks about the potential exit of the United Kingdom from the European Union continue to rattle markets. As a result, the Great Britain pound extended its move to the downside during Tuesday’s trading. According to the latest polls, those who want Britain out of the EU lead as of now. That does not bode well for the economy and the currency of the UK. While some economists argue that independence would be beneficial to the country in the long run, it … “Brexit Votes Lead in Polls, GBP Extends Run to Downside”
ECB Seeing Repercussions of Quantitative Easing Policy
Since March, the European Central Bank (ECB) has held interest rates at 0% in hopes of strengthening Europe’s economy. Some felt that this was a move of desperation for the central bank and many expected the rates to rise in the months following. Economists, however, were not surprised when the bank’s policy did not change. … “ECB Seeing Repercussions of Quantitative Easing Policy”
Australian Dollar Touched Four-Year Low vs. Yen
The Australian dollar fell against its US counterpart today amid the risk-negative market sentiment and underwhelming economic data from Australia. The currency also dropped versus the Japanese yen, touching the lowest level in four years. National Australia Bank reported that business confidence index eased from 5 to 3 in May. Economic data from China, Australia’s biggest trading partner, was also not encouraging. But the most … “Australian Dollar Touched Four-Year Low vs. Yen”
South African Rand Falls as Current Account Deficit Widens
The South African rand dropped today after data showed an increase of the nation’s current account deficit. The South African Reserve Bank reported that the current account logged a deficit of 5% of GDP in the first quarter of 2016, up from 4.6% in the fourth quarter of 2015. The bank explained the rising shortage by the drop of mining output that followed the slump of global commodity prices. The news led to speculations that the central bank may raise … “South African Rand Falls as Current Account Deficit Widens”