The US dollar ended the week mixed as the currency struggled to maintain its upward momentum amid speculations that the dollar’s rally has run its course. The outlook for an interest rate hike from the Federal Reserve in December continued to support the currency. Yet there were speculations that the event has already been priced in, therefore the greenback should to look for other fundamentals to determine its trend. One of other important events … “Dollar Ends Week Mixed, Struggling to Maintain Upward Momentum”
Month: October 2016
US Dollar Gets No Boost from US Economic Data
The US dollar traded below the opening level against other most-traded currencies as mixed economic data from the United States provided no boost for the currency that is struggling to maintain its upward momentum. The most important US economic reports should have been gross domestic product data, but it actually did not draw attention from markets despite showing faster-than-expected growth of the US economy. On the other … “US Dollar Gets No Boost from US Economic Data”
Sterling Soft After Northern Ireland Court Decision
The Great Britain pound rose against the US dollar but fell against most other currencies today as the threat of the Brexit continued to undermine the currency’s appeal to Forex traders. The big news of the day was the decision of Northern Ireland’s High Court that British government can initiate the Brexit without consent from the parliament. The matter is not over as the High Court in London is yet to make its decision as today’s verdict … “Sterling Soft After Northern Ireland Court Decision”
EUR/USD: Staying Short: 4 Macro Reasons Plus Technicals –
EUR/USD managed to stabilize itself on higher ground after mixed data but the pressure persists. Here is the view from Credit Suisse: Here is their view, courtesy of eFXnews: We lower our 3m EURUSD forecast to 1.05 from 1.10. Rationale: 1. Relative monetary policy: The 20 October ECB meeting was interpreted as leaving open room for continued … “EUR/USD: Staying Short: 4 Macro Reasons Plus Technicals –”
Economic Data from Australia Sends Aussie Lower
The Australian dollar fell today as economic reports released from Australia during the current trading session were not particularly good, making them detrimental to the currency. The Producer Price Index rose 0.3% in the September quarter from the previous three months. While it was a bigger increase than 0.1% during the June quarter, it was two times smaller than the median forecast of 0.6% growth. Housing Industry Association … “Economic Data from Australia Sends Aussie Lower”
Yen Flat After Bunch of Economic Reports from Japan
The Japanese yen was flat against most of its major rivals during the current trading session after a bunch of macroeconomic data was released from Japan today. Arguably the most important of reports released today were consumer spending and inflation data. While both consumer expenditure and the core Consumer Price Index (both for Tokyo and for the whole Japan) fell, the drop was not as big as analysts had predicted. Still, the data … “Yen Flat After Bunch of Economic Reports from Japan”
Canadian Dollar Mostly Flat amid Battling Fundamentals
The Canadian dollar was mostly flat against its major rivals (though not versus the Japanese yen) as good and bad fundamentals battled for the right to determine the direction for the currency to move. High chances for an interest rate hike from the Federal Reserve in December (which now stands at 78% according to CME FedWatch) make most currencies soft against the US dollar. The dovish stance of Canada’s central bank makes the loonie vulnerable against … “Canadian Dollar Mostly Flat amid Battling Fundamentals”
Swedish Krona Sinks as Riksbank Signals About Possible Easing
The Swedish krona fell today after the nation’s central bank signaled that it is ready to cut interest rates deeper into the negative territory and expand its quantitative easing program. The Riksbank kept its main interest rate at -0.5% at today’s policy meeting. While the krona initially rallied due to absence of a rate cut, the currency backed off after market participants digested the policy statement and discovered that it … “Swedish Krona Sinks as Riksbank Signals About Possible Easing”
Dollar Maintains Its Gains Against Yen on Interest Policy Forecasts
The US dollar strengthened against the yen as it boosted the gains it made over the past three days on bets that the Federal Reserve will raise its interest rates, increasing tradersâ appetite for the currency. The Bank of Japan is expected to keep its stimulus program unchanged during the meeting of Japanese policymakers next week, which would offer more support for the greenback. On the other hand, markets believe thereâs a 71.4 percent … “Dollar Maintains Its Gains Against Yen on Interest Policy Forecasts”
New Zealand Trade Deficit Widens, NZD Down
The New Zealand dollar fell against the US dollar and the euro after Thursday’s data revealed that the New Zealand trade balance deficit widened last month unexpectedly. The New Zealand trade balance posted a deficit of NZ$1.4 billion in September. It was an increase from the August’s value of NZ$1.2 billion while experts had predicted a decrease to NZ$1.1 billion. The data hurt the New Zealand dollar, though other risky commodity … “New Zealand Trade Deficit Widens, NZD Down”