Canadian dollar is still recovering from last week’s rather large plunge against major currencies. Loonie is higher today against its major counterparts, even though there are still concerns about the Canadian economy and some commodities are still struggling. Last week, the Canadian dollar dropped quite a bit. Concerns about the state of the economy, and disappointing advance data out of the United States weighed on the loonie. … “Loonie Continues to Recover From Last Week’s Plunge”
Month: August 2016
Super Thursday for the BOE: Rate cut? QE? Or both?
The Bank of England kept us waiting at the first post-Brexit decision. They wanted to wait for more data and perhaps to coordinate with the newly formed government. The wait is over: Carney and his team will now have the fresh Quarterly Inflation Report as well as PMI data. They are expected to take at … “Super Thursday for the BOE: Rate cut? QE? Or both?”
Yen Halts Rally
The Japanese yen fell against the US dollar and the Great Britain pound today following yesterday’s big jump. Yesterday, the yen had rallied as markets apparently felt that the ¥28 trillion stimulus package announced by the Bank of Japan was not enough to bolster the Japanese economy. Today, the BoJ released minutes of its June meeting, which showed doubts among policy makers regarding the effects of negative interest rates. Japan’s currency … “Yen Halts Rally”
Great Britain Pound Near Opening After Poor Services PMI
The Great Britain pound was falling today and continued to decline after the poor report about the UK services sector. Yet now the currency has reversed its movement and trades close to the opening level. The Markit/CIPS UK Services PMI fell from 52.3 in June to 47.4 in July according to the revised estimate — the same as the preliminary report and matching analysts’ expectations. The reading was the lowest since March 2009. The data supported the view that … “Great Britain Pound Near Opening After Poor Services PMI”
JPY Still Undervalued; USD/JPY: To Drift Lower Towards 98
The BOJ did not add significant stimulus and the government did not surprise with its stimulus program. More falls in store? Here are the thoughts from BTMU: Here is their view, courtesy of eFXnews: The yen continues to trade on a stronger footing after the BoJ disappointed market expectations by only tweaking monetary policy settings at … “JPY Still Undervalued; USD/JPY: To Drift Lower Towards 98”
BOE to hit GBP hard? 3 opinions
The Bank of England convenes on Thursday in a highly anticipated decision, especially after teasing us 3 weeks ago. Here are three opinions: BoE Should ‘Kitchen Sink It’; Will GBP Break Below 1.30? – BofA Merrill The UK soft data looks bad (Chart of the Day): the economy has taken a big hit and may … “BOE to hit GBP hard? 3 opinions”
Is Trump preparing to lose? This could lower market
In the past 5 days, there may have been a big shift in the standings in the US presidential elections. A mostly successful Democratic convention and outlandish statements by Trump, even by his own terms, have shifted the polls. The attacks of Donald Trump against the bereaved parents of a fallen soldier may be a big moment that … “Is Trump preparing to lose? This could lower market”
NZD Gains on USD with Support from Economic Data
The New Zealand dollar gained on its US counterpart thanks to positive economic data from New Zealand. At the same time, the currency fell against the Japanese yen. The GlobalDairyTrade Price Index rose 6.6% at today’s auction compared to the previous reporting period when it was flat. Reserve Bank of New Zealand inflation expectations rose a little from the previous quarter. The news spurred talks that the central bank may be … “NZD Gains on USD with Support from Economic Data”
Australian Dollar Faces Interest Rate Cut with Resilience
The Australian dollar demonstrated a surprising resilience after the interest rate cut from the Reserve Bank of Australia and poor economic data. While the currency dipped initially, the drop was quickly followed by a strong bounce. The RBA cut its cash rate by 25 basis points to 1.5%. Most market participants were counting on such a decision even though unexpectedly strong inflation had caused some doubts about willingness of the central bank … “Australian Dollar Faces Interest Rate Cut with Resilience”
GBP/USD: Trading the British UK Services PMI
UK Services PMI is based on a survey of purchasing managers in the services sector. Respondents are surveyed for their view of the economy and business conditions in the UK. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes for GBP/USD. Published on Tuesday at 8:30 … “GBP/USD: Trading the British UK Services PMI”