The US dollar enjoyed quite a ride following the hawkish hike. What’s next? Here is the view from ANZ: Here is their view, courtesy of eFXnews: How far and how long the dollar’s appreciation will continue is increasingly coming into focus. From a valuation perspective, the dollar is becoming increasingly overvalued. Based on relative producer prices … “USD Increasingly Overvalued But EUR/USD Still Set To Test”
Month: December 2016
Dollar Strong After Fed Week
Federal Reserve monetary policy announcement was the most important event this week (though several other central banks made their policy decisions as well). While an interest rate hike was expected, the actual event still managed to surprise markets, sending the US dollar higher against its most-traded counterparts. Markets widely expected a quarter point increase to the federal funds rate, and the Fed did not provide any … “Dollar Strong After Fed Week”
Australian Dollar Declines Against Major Peers After US Fed Decision
The Australian dollar declined against most of its major peers on Friday as investors weighed the effect of the higher interest rates in the United States following an update to monetary policy from the Federal Reserve on Wednesday. The US Federal Reserve took a widely expected move to raise its benchmark interest rate by 0.25% to 0.50% to 0.75%. The central bank also pointed to a possibility of accelerating its pace of raising interest rates in 2017 to three hikes, instead … “Australian Dollar Declines Against Major Peers After US Fed Decision”
US Dollar Remains Bullish Against Major Currencies Despite Weak Housing Data
The US dollar extended its bullish trend against major currencies despite weak housing data released today. The housing stats released today indicated an 18.7% decline from the 24.7% gain that was witnessed in October. The housing starts released by the Census Bureau in collaboration with the Department of Housing and Urban Development showed a significant decrease in new housing starts for November. The data released indicated that housing starts had fallen … “US Dollar Remains Bullish Against Major Currencies Despite Weak Housing Data”
The ‘Trumpflation Trade’ Is Still In Full Swing, What’s
The victory of Donald Trump pushed the dollar higher, and so did the Federal Reserve. Can this continue? Here is the view from Nomura: Here is their view, courtesy of eFXnews: The FOMC delivered the market a hawkish surprise this week, with the 2017 dots signalling three hikes next year, up from the two signalled … “The ‘Trumpflation Trade’ Is Still In Full Swing, What’s”
Euro Loses Ground Against Major Currencies After Fed Interest Rate Hike
The euro has significantly weakened against the US dollar during today’s session following yesterday’s interest rate hike by the Fed. The euro also started the day by gaining ground against the Japanese Yen and the pound sterling as it hit major highs and lows before settling to trade at moderate price levels. The EUR/USD pair has largely been affected by divergent monetary policies from the European Central Bank and the US Federal Reserve. This … “Euro Loses Ground Against Major Currencies After Fed Interest Rate Hike”
EUR/USD: Heading Firmly Towards Parity After Technical Breakout –
Following the Fed’s hawkish hike, EUR/USD weakened. At first, it held above the the critical level but this collapsed and the pair is already at 1.0372. What’s next? Parity is in sight: Here is their view, courtesy of eFXnews: We expect the euro to remain under downward pressure against the US dollar after breaking below key technical … “EUR/USD: Heading Firmly Towards Parity After Technical Breakout –”
US Dollar Soars to Its Highest Level Since 2002
The US dollar surged to its strongest level in 14 years on Thursday, after a monetary policy decision from the Federal Reserve yesterday carried hints of a possible accelerated pace of increasing interest rates in the coming year. The Federal Open Market Committee released its policy statement at 19:00 GMT on Wednesday, which said that the central bankâs benchmark interest rate was raised by 0.25%. The move was widely expected by investors everywhere … “US Dollar Soars to Its Highest Level Since 2002”
Norwegian Krone Down vs. US Dollar Following Norges Bank Meeting
The Norges Bank (Norway’s central bank) was one of the central banks that were conducting policy meetings today and decided to keep their monetary policies unchanged. The Norwegian krone (as well as most other currencies) traded below the opening level against the US dollar after the meeting. The Norges Bank decided to leave its main interest rate at 0.5% at today’s meeting. Governor Ãystein Olsen said in the statement: Our current assessment … “Norwegian Krone Down vs. US Dollar Following Norges Bank Meeting”
Swiss Franc Soft After SNB Meeting
The Swiss franc was generally soft today (though not against the euro) after the Swiss National Bank kept interest rates in the negative territory and reiterated that it will continue to intervene on the currency markets to weaken the Swissie. The SNB made no changes to its policy today, leaving the midpoint of the target range for the three-month Libor at 0.75%. As for the currency, the central bank said: The negative interest rate and the SNBâs willingness to intervene in the foreign exchange … “Swiss Franc Soft After SNB Meeting”