Euro is heading lower today, dropping as fallout from the recent Brexit vote continues. Euro is down against its major counterparts, even remaining lower against the UK pound. Another issue weighing on the 19-nation currency has to do with the health of the Italian financial system. With concerns about the system, the euro is struggling. Euro is down almost across the board today, struggling as concerns about fallout … “Euro Continues to Struggle Following Brexit Fallout”
Month: July 2016
Bond guru Gundlach: 80% chance of making 10% in gold
Bond guru and head of DoubleLine Capital gave an interview with Barrons over the weekend. Sharing his thoughts on a variety of factors ranging from the Brexit fallout to the upcoming US elections, Gundlach maintained his views that gold prices are more likely to go higher. He said, “Gold miners have a very high probability—if … “Bond guru Gundlach: 80% chance of making 10% in gold”
Sterling Drops as Traders Brace for Easing from Bank of England
The Great Britain pound fell against the US dollar and the euro during the current trading session as market participants were betting on monetary easing from the nation’s central bank at this week’s policy meeting. The Bank of England will conduct a meeting on July 14. While previously speculators were betting on an interest rate cut in August, now they anticipate a reduction in July. Analysts predict that the main rate will be slashed … “Sterling Drops as Traders Brace for Easing from Bank of England”
Yen Drops After Elections in Japan
The Japanese yen dropped today as the landslide victory of the ruling coalition gave Prime Minister Shinzo Abe to take bolder steps for reviving economic growth. Shinzo’s Liberal Democratic Party won in the Upper House elections over the weekend. The Prime Minister ordered a new package of fiscal stimulus after the elections. Meanwhile, core machinery orders fell 1.4% in May even though economists had promised an increase. USD/JPY climbed 1.5% from … “Yen Drops After Elections in Japan”
GBP/USD prospects are not so good – 3 opinions
GBP/USD fell for a third week in a row but there may be more in the pipeline, all because of Brexit. Here are three opinions about the prospects for cable: Here is their view, courtesy of eFXnews: ‘Wishful Thinking’ Ideas Won’t Save GBP; En-Route To 1.22 – Credit Suisse In the week that has followed, the … “GBP/USD prospects are not so good – 3 opinions”
US Dollar Ends Week Mixed as NFP Do Not Give Edge
The US dollar has ended the trading week mixed. It rose against the euro, the Great Britain pound, the Swiss franc, and the Canadian dollar. At the same time, the greenback fell versus the Japanese yen, the Australian dollar, and the New Zealand dollar. Non-farm payrolls should have been an important factor for the US currency. Yet they failed to give the dollar an edge even though employment growth was very robust and exceeded forecasts by a wide … “US Dollar Ends Week Mixed as NFP Do Not Give Edge”
Yen Goes Higher, Making Japanese Policy Makers Unhappy
The Japanese yen rallied today despite unfavorable macroeconomic data and warnings from Japan’s officials about possible interventions in order to stem the currency’s rally. Japan’s current account surplus shrank to â¥â1.41 trillion in May from â¥â1.63 trillion the month before. Yet this did not prevent the currency from rising. The rally is frustrating for Japanese policy makers who want to see the yen weaker, meaning that they may … “Yen Goes Higher, Making Japanese Policy Makers Unhappy”
Brazilian Real Jumps vs. US Dollar
The Brazilian real jumped as much as 2% versus the US dollar today as Brazil’s central bank refrained from intervening in markets to support the currency while the government showed willingness to embark on fiscal austerity. Investors were concerned that President Michel Temer might avoid austerity measures to gain support from the divided Congress. Yet it look’s like that is not the case as Temer announced that he is going … “Brazilian Real Jumps vs. US Dollar”
Canadian Dollar Settles Lower After Jobs Data
The Canadian dollar fell today after the release of jobs data that showed an unexpected drop of employment. The drop was fairly limited, though the currency reached a multi-year low versus the Japanese yen. The number of employed people in Canada fell by 700 in June following the increase by 13,800 in May. Market participants were counting on an increase by 5,500. At the same time, the unemployment rate ticked down by 0.1 percentage point to 7.8% while analysts had … “Canadian Dollar Settles Lower After Jobs Data”
Non-Farm Payrolls Fail to Boost Dollar
US non-farm payrolls were positive at the first glance, but it was not enough to boost the US dollar. On closer inspection, the employment report was not that good, giving no reason to believe that the economic conditions are solid enough to warrant withdrawal of monetary stimulus. Non-farm payrolls demonstrated growth by 287,000 in June which was far above the analysts’ median forecast of 175,000. The dollar had surged at first, … “Non-Farm Payrolls Fail to Boost Dollar”