The pound continued suffering after the big flash crash and there may be more in store. And for longer. Here is the view from Morgan Stanley: Here is their view, courtesy of eFXnews: Bottom Line: We are changing our forecasts to expect more GBPUSD weakness in coming quarters and little recovery next year. The higher probability of … “Adjusting GBP Lower And For Longer: New Targets – Morgan”
Month: October 2016
EUR/USD Closes Under Significant Level 1.10 â 2% Weekly Loss
EUR/USD closed on Friday at 1.0964, down about 2% on a weekly basis from 1.1196 at beginning of the week. There has been a downside pressure all week and a strong ZEW Economic Sentiment Index of 12.3 on Tuesday, with a 3-month continuous improvement, did not have any significant impact or short-term rally. It is important to note that a higher ZEW Economic sentiment shows positive expectations for the eurozone economy. On Friday, important … “EUR/USD Closes Under Significant Level 1.10 â 2% Weekly Loss”
Dollar Logs Big Weekly Gains as Fed Suggests Tightening Soon
The US dollar demonstrated an impressive rally during the past trading week. The currency continued to get support from the outlook for monetary tightening from the Federal Reserve and positive macroeconomic data. The Fed released minutes of its September policy meeting on Wednesday, showing that hawks were becoming more courageous while doves had become more open to an idea of an interest rate hike in the near future. This increased investors’ confidence that … “Dollar Logs Big Weekly Gains as Fed Suggests Tightening Soon”
Dollar Rallies as Data Feeds Outlook for Interest Rate Hike
The US dollar rallied today as economic data release from the United States over the trading session was good so far, improving chances for an interest rate hike from the Federal Reserve in December. Retail sales increased 0.6% in September, in line with expectations. The Producer Price Index rose 0.3%, a bit more than analysts had promised — 0.2%. Later during the session, reports about the consumer sentiment and business inventories … “Dollar Rallies as Data Feeds Outlook for Interest Rate Hike”
Something Really Strange Is Happening In Markets With Implications
Correlations we got used to are changing, and this is significant. What does it mean to for the dominant dollar? Here is the view from Deutsche Bank: Here is their view, courtesy of eFXnews: Something strange is happening in markets. While the dollar and the oil price have historically moved in opposite directions the correlation has suddenly … “Something Really Strange Is Happening In Markets With Implications”
Australian Dollar Jumps After China’s Data Surprises
The Australian dollar jumped today as China released unexpectedly strong prices data, helping the currency of its trading partner. China’s Consumer Price Index rose 1.9% in September from a year ago compared to the forecast increase of 1.6%. The Producer Price Index edged up 0.1% while forecasters had predicted a drop by 0.4%. China is the biggest trading partner of Australia, therefore its economic reports tend to have a big impact … “Australian Dollar Jumps After China’s Data Surprises”
Australian Dollar Trims Losses After Intraday Drop
The Australian dollar was down today but managed to trim its losses by now and to erase them almost completely against the US dollar. The Australian dollar was hurt by the same factors as other currencies of emerging markets — the relatively hawkish Federal Reserve minutes and the drop of China’s imports and exports. Yet the Aussie had support from domestic fundamentals. The Melbourne Institute inflation expectations increased from 3.3% in September to 3.7% in October, supporting … “Australian Dollar Trims Losses After Intraday Drop”
Turkish Lira at Record Low
The Turkish lira fell to the record low, being under pressure from fundamentals both domestic and from abroad. The lira was hurt by Wednesday’s data that showed an increase of the current account deficit and slowdown of nation’s economic growth. As for news overseas, the drop of China’s exports and imports as well as minutes of the latest policy meeting released by the Federal Reserve yesterday were cited by experts as reasons for the lira’s drop. The Turkish currency was the weakest among … “Turkish Lira at Record Low”
GBP: Calibrating The Current GBP Decline; What’s Next? –
The pound remains under pressure after the big flash crash. The team at Bank of America Merrill Lunch analyzes the next moves for the pounded pound: Here is their view, courtesy of eFXnews: The initial sell-off in GBP/USD following the EU Referendum was immediate and resembled the price action in 1992 when the pound was ejected … “GBP: Calibrating The Current GBP Decline; What’s Next? –”
GBP/USD – Is the correction over?
The first debate in the British Parliament came and went and perhaps the correction in GBP/USD followed. Cable is hanging around 1.22 after a roller-coaster. The pair had already dipped to the 1.20 handle before climbing back up, but now it’s down. With a dollar-positive outcome from the meeting minutes and ongoing worries about Brexit, there’s room … “GBP/USD – Is the correction over?”