In our FED preview, we laid out three scenarios, only one USD positive. Here is the view from Danske, focusing on EUR/USD: Here is their view, courtesy of eFXnews: As expected, the Fed hiked the target range by 25bp to 0.50%-0.75% from 0.25%-0.50% previously. The statement explains the hike by stronger growth in H2 16, a … “EUR/USD A Sell On Rallies After Hawkish FED – Danske”
Month: December 2016
Australian Dollar Strong After Employment Report
The employment report released from Australia during the Asian trading session was mixed, but that did not prevent the Australian dollar from beating most of its rivals, though not the very strong US dollar. Australia’s employment grew by 39,100 in November from October, much more than analysts had predicted (17,600). The October increase got a big positive revision from 9,800 to 15,200. At the same time, the unemployment … “Australian Dollar Strong After Employment Report”
Dec FOMC: A Rate Hike And A Modest Hawkish Surprise
The Fed raised rates and pushed the dollar higher, especially by laying out three hikes in 2017. Here is the view from Barclays Here is their view, courtesy of eFXnews: At its meeting today, the FOMC raised the target range for the federal funds rate to ½ to ¾ percent from ¼ to ½ percent. In its view, … “Dec FOMC: A Rate Hike And A Modest Hawkish Surprise”
Dollar Jumps After Fed Hikes Rates & Updates Economic Projections
The US dollar shot to the upside after the Federal Reserve announced an interest rate hike and updated the forecast path for the federal funds rate. The Fed made an unanimous decision to hike its target range for the federal funds rate from 0.5% to 0.75%. Ahead of the meeting, markets were considering such a move almost guaranteed, so the Fed did not surprise anyone by its decision. The economic projections, on the other hand, did provide an important … “Dollar Jumps After Fed Hikes Rates & Updates Economic Projections”
Dec FOMC: No More Hawkish Than Needed; Market To Reprice
The FED hiked interest rates as expected and also lifted expectations for 2017 from two to three rate hikes. Here is the quick response from CIBC: Here is their view, courtesy of eFXnews: Forgive someone for yawning about the Fed’s unanimous decision to raise rates a quarter point today, which was well telegraphed in advance. Nor … “Dec FOMC: No More Hawkish Than Needed; Market To Reprice”
Canadian Dollar Surges to Highest Level in Eight Weeks Ahead of Fed Rate Decision
The Canadian dollar gained more strength against its US counterpart on Wednesday, as investors stayed off the US dollar until a monetary policy decision that comes out from the Federal Reserve is released today. A number of data releases on Wednesday painted a mixed picture for the Canadian economy. Statistics Canada, the nationâs agency for census data, published its report for Canadian household debt in the third quarter earlier today. The report said … “Canadian Dollar Surges to Highest Level in Eight Weeks Ahead of Fed Rate Decision”
British Pound Climbs Against US Dollar on Positive UK Jobs Data
The British pound moved higher against the US dollar on Wednesday as fresh employment numbers in the United Kingdom appeared positive. However, the British currencyâs gains were limited as traders braced for a monetary policy decision from the US Federal Reserve. The UK Office for National Statistics published its earnings and working hours report earlier today, which said that the average weekly earnings growth rate reached 2.5% in October, from 2.4% … “British Pound Climbs Against US Dollar on Positive UK Jobs Data”
EUR/USD Remains Bullish Ahead of The Federal Reserve Bank Interest Rate Announcement
The EUR/USD has risen slightly during today’s trading session as investors wait for the Federal Reserve Bank announcement regarding interest rates. It is widely anticipated that the Fed shall announce an interest rate hike, the first such hike this year. The currency pair also seemed unaffected by other financial data released today. The greenback retreated slightly based on retail data released today, which was below industry projections. … “EUR/USD Remains Bullish Ahead of The Federal Reserve Bank Interest Rate Announcement”
Swiss Franc Gains After Favorable Economic Data
The Swiss franc gained against most of its major rivals today after the Producer Price Index demonstrated an unexpected increase and economic sentiment for Switzerland improved. The PPI rose 0.1% in November instead of falling at the same rate as economists had predicted. The ZEW-CS-Indicator for the economic sentiment in Switzerland rose from 8.9 to 12.9 in December, gaining for the fourth time in a row. The report also said that economic expectations for the eurozone were roughly balanced between … “Swiss Franc Gains After Favorable Economic Data”
Yen Gains on Dollar After Release of Japan’s Economic Reports
The Japanese yen traded higher against the US dollar following today’s economic releases from Japan even though the data was not particularly good, failing to reach analysts’ expectations. The Tankan Manufacturing Index rose from 6 in the September quarter to 10 in the December quarter of 2016, matching forecasts. But the Non-Manufacturing Index was unchanged at 18 whereas experts had promised a small increase to 19. The Index of Industrial Production was … “Yen Gains on Dollar After Release of Japan’s Economic Reports”