Euro is getting some breathing room today, thanks in part to better news out of Germany. The latest trade surplus numbers are helpful, but long-term there are still issues that are likely to contribute to euro weakness. The German trade surplus data is helping the euro in Forex trading today. On top of that, renewed commitments to Spain and Portugal are helping. There were concerns that those conuntries … “Euro Gets Some Breathing Room”
Month: August 2016
New Zealand Dollar Firm Ahead of Policy Meeting
The Reserve Bank of New Zealand prepares for a monetary policy meeting where it is likely to cut interest rates. Yet the New Zealand dollar looks unfazed by the prospects for monetary easing, staging a strong rally during the Wednesday’s trading session. The RBNZ will announce its decision as of 21:00 GMT today. The general consensus is that the central bank will cut its main interest rate by 25 basis points to 2%. … “New Zealand Dollar Firm Ahead of Policy Meeting”
Australian Dollar Continues Climb Higher
The Australian dollar extended its rally today, rising against the euro for the seventh consecutive trading session. It is hard to explain the resilience of the currency considering that fundamentals were not particularly supportive for the Aussie. Australian home loans rose at the rate of 1.2% in June from May, two times slower than economists had anticipated. On the positive note, the Westpac Melbourne Institute Index of Consumer Sentiment advanced 2.0% in August from … “Australian Dollar Continues Climb Higher”
RBNZ previews: a cut is expected, but how much?
The RBNZ makes its move today and everybody expects a cut. Is it already priced in? Probably. But the RBNZ could go further down the rabbit hole: Here is their view, courtesy of eFXnews: RBNZ Would Need To Cut Rates By 50bp To Move NZD Significantly Lower – Westpac We expect the RBNZ to cut … “RBNZ previews: a cut is expected, but how much?”
Pound Drops for Fifth Day Against Dollar
The Great Britain pound fell for the fifth straight trading session against the US dollar and also dropped against other major rivals even though some of the macroeconomic reports released today were good. British Retail Consortium reported that retail sales rose 1.1% in July from a year ago. UK manufacturing production fell 0.3% in June from the previous month while industrial production ticked up 0.1%. The trade … “Pound Drops for Fifth Day Against Dollar”
Aussie Bounces vs. Greenback, Remains Down vs. Yen
The Australian dollar bounced against its US peer following the earlier decline but fell against the Japanese yen. Fundamentals were a bit mixed, and that explains the mixed performance of the currency. According the Monthly Business Survey published by National Australia Bank, the business confidence index was at 4 in July, little changed from the June’s value of 5. The report said: Business sentiment has shown great resilience to external shocks in the July … “Aussie Bounces vs. Greenback, Remains Down vs. Yen”
The time for shorts on crude is gone (at least
Crude is up 4.11% this month, 2.55% this week and 0.54% today. Bulls have got this. Yesterday we talked about how important the 42.50 level was for bears; not only because it was a previous low (strongly tested) but because this was the short term bull / bear level. A break of this level opens … “The time for shorts on crude is gone (at least”
USD/JPY: Trading the US JOLTS Jobs Openings
US JOLTS Job Openings measures the change in the number of employment openings, excluding the farm industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible JOLTS outcomes for USD /JPY. Published on Wednesday at 14:00 GMT. Indicator Background Job creation is one … “USD/JPY: Trading the US JOLTS Jobs Openings”
Central Banks Have Lost The Ability To Drive Currencies
The traditional relationship between central bank easing and price action response, whereby easing measures translate into currency weakness, has been thoroughly challenged this year with a series of central bank easing announcements largely dismissed by markets. Guest post by James Harte of Orbex Quick Timeline The BOJ cut rates into negative territory, for the first time … “Central Banks Have Lost The Ability To Drive Currencies”
Regression Models Show Divergent Paths For AUD & NZD –
The Australian central bank cut rates and the New Zealand one is expected to follow. However, the paths could be divergent, says the team at GS: Here is their view, courtesy of eFXnews: We periodically use regression models to map things like interest differentials, commodity prices, and risk appetite into exchange rates These models are always subject … “Regression Models Show Divergent Paths For AUD & NZD –”