The Fed is very gradually edging towards a rate hike. While it didn’t happen yet, the bar is lower. A gain of 150K will probably be sufficient, below the 200K expected in previous months. Wage growth acceleration is also not really needed. The US dollar momentum could be derailed if the headline dips under 100K. … “NFP Preview: the dollar doesn’t need much to keep the”
Month: October 2016
Swiss Inflation Misses Forecast, Makes Franc Weak
The Swiss franc was soft today despite the risk-negative sentiment that should have supported the currency. Yet the worse-than-expected inflation data did not allow the currency to rally. Switzerland’s Consumer Price Index rose 0.1% in September from the previous month compared to the consensus forecast of 0.2% growth. Year-on-year, consumer prices fell 0.2%. The worse-than-expected data prevented the Swissie from gaining on risk aversion that was driving riskier currencies … “Swiss Inflation Misses Forecast, Makes Franc Weak”
Australian Dollar Trades Lower Even as Trade Deficit Shrinks
The Australian dollar fell today against its major peers even though economic data released during the trading session showed that Australia’s trade balance deficit shrank in August. The likely reason for the currency’s poor performance were expectations of monetary tightening from the US Federal Reserve. Australia’s trade deficit narrowed from A$2.12 billion in July to A$2.01 billion in August while analysts had predicted an increase. Yet the Aussie … “Australian Dollar Trades Lower Even as Trade Deficit Shrinks”
EUR/USD: Trading the US Non-Farm Payrolls
US Nonfarm Employment Change measures the change in the number of newly employed people in the US, excluding workers in the farming industry. A reading which is higher than the market forecast is bullish for the dollar. Here are the details and 5 possible outcomes for EUR/USD. Published on Friday at 12:30 GMT. Big news: GBP/USD … “EUR/USD: Trading the US Non-Farm Payrolls”
Tapering ECB Taper-talk – Two views
The talk about ECB tapering supported the common currency, but not for long. Here are two additional reasons why this could be just temporary: Here is their view, courtesy of eFXnews: ECB: ‘Too Early’ To Discuss Tapering – Danske According to ECB officials the ECB is set to gradually wind down bond purchases once the … “Tapering ECB Taper-talk – Two views”
Canadian Dollar Stays Flat After Mixed Trading
The Canadian dollar was little changed during Thursday’s Asian trading session after demonstrating mixed performance during the Wednesday’s session. Prices for crude oil rallied on Wednesday, but the currency failed to profit from the rally, and now crude has retreated, depriving the loonie from support. On the positive note, Canada’s trade balance deficit narrowed from C$2.2 billion in July to C$1.9 billion in August. The encouraging data suggested that the nation’s … “Canadian Dollar Stays Flat After Mixed Trading”
Dollar Trades Flat During Wednesday
The US dollar was little changed against the basket of major currencies during Wednesday’s trading as clashing economic reports did not allow the currency to establish a clear trend. The employment report from Automatic Data Processing disappointed dollar bulls, showing growth by just 154,000 in September while market participants were counting on an increase by at least 166,000. The data led to concerns that Friday’s non-farm payrolls may disappoint as well. Yet … “Dollar Trades Flat During Wednesday”
New Zealand Dollar Drops with Dairy Prices
The New Zealand dollar dropped today as the drop of dairy prices added to speculations that the Reserve Bank of New Zealand is going to cut interest rates soon. The ANZ Commodity Price Index rose 5.1% month-on-month in September, logging the fifth consecutive monthly increase and reaching the highest level in 17 months. Meanwhile, the GlobalDairyTrade Price Index dropped 3% at yesterday’s auction to the lowest level in two months. Milk and related products are … “New Zealand Dollar Drops with Dairy Prices”
Australian Dollar Doesn’t Get Help from Economic Data
The Australian dollar fell against its major rivals today (with the exception of the Japanese yen against which it traded almost flat) despite positive macroeconomic reports released from Australia over the current trading session. Australian retail sales grew 0.4% in August from July while analysts had predicted an increase by just 0.2%. The Australian Industry Group Australian Performance of Services Index rose from 45.0 to 48.9 … “Australian Dollar Doesn’t Get Help from Economic Data”
AUD/USD: Trading Australian Trade Balance
Australian Trade Balance is closely linked to currency demand and is a key indicator. A reading which is higher than expected is bullish for the Australian dollar. Here are all the details, and 5 possible outcomes for AUD/USD. Published on Thursday at 00:30 GMT. Indicator Background Australian Trade Balance measures the difference in the value of imported and … “AUD/USD: Trading Australian Trade Balance”