The Federal Reserve is set to raise the interest rate for the second time after the financial crisis, one year after the first, historic hike. That will not be a surprise and it is already baked into prices. The big question is what’s next? Traders will try to assess the FED’s path in 2017 in beyond. … “FED Preview: Three scenarios, only one USD-positive”
Month: December 2016
Trading FOMC: 5 FX Observations From Dec 2015 Hike – SEB
In our FED preview, we laid out three scenarios, only one USD positive. Here is the view from SEB, which compares today’s event to the moves seen last year: With Fed widely anticipated to hike policy rate Wednesday Dec 14 we have looked at G10 currency reactions following the hike Dec 16, 2015 as well as … “Trading FOMC: 5 FX Observations From Dec 2015 Hike – SEB”
AUD/USD: Trading the Australian Employment Change
Australian Employment Change, which is released monthly, provides a snapshot of the health of the Australian labor market. A reading which is higher than the market forecast is bullish for the Australian dollar. Here are the details and 5 possible outcomes for AUD/USD. Published on Thursday at 00:30 GMT. Indicator Background Job creation is one … “AUD/USD: Trading the Australian Employment Change”
Canadian Dollar Rises Against US Counterpart on Higher Oil Prices
The Canadian dollar strengthened against the US dollar on Tuesday to its highest level since October 19, as gains in oil prices continued lifting the commodity currency. Crude oil prices rose on marketsâ anticipation of shrinking global supply. Major oil producing countries outside the Organization of the Petroleum Exporting Countries arrived to an agreement that cuts their net daily oil output by 558,000 barrels per day. The cut represents about 0.7% … “Canadian Dollar Rises Against US Counterpart on Higher Oil Prices”
NZD/USD Maintains Its Bullish Trend Despite Weak Manufacturing Data
The NZD/USD currency pair continued with the upward trend witnessed on Monday during Tuesday’s trading session. The bullish run led to the pair hitting levels above its 100-day SMA, which is a crucial support point. The currency pair hit the 0.7230 level, its highest level since November 10. This is despite the release of manufacturing data by the Reserve Bank of New Zealand that showed weak sales and volumes in the manufacturing … “NZD/USD Maintains Its Bullish Trend Despite Weak Manufacturing Data”
British Pound Climbs on Inflation Data That Exceeded Expectations
The British pound surged against its major peers on Tuesday, after a new report in the United Kingdom revealed that the nationâs inflation increased more than expected in November. The UK Office for National Statistics published its inflation figures for November earlier today, which showed that the consumer prices index rose to 1.2% in November 2016 from one year earlier. This compares to an increase to 0.9% in October, and marks the fastest rate … “British Pound Climbs on Inflation Data That Exceeded Expectations”
A Fed’s Hike This Week + 2 More Hikes In
The Federal Reserve is set to raise rates, in a move which will not be a surprise. But what’s next afterwards? Here is the view from Nomura: Here is their view, courtesy of eFXnews: We expect the FOMC to raise its targets for short-term interest rates by 25bp at its meeting this week. Recent public statements by … “A Fed’s Hike This Week + 2 More Hikes In”
GBP/USD: Trading the UK Claimant Count Change
The UK Claimant Count Change measures the change in the number of people claiming unemployment benefits. Along with the unemployment rate, which is released at the same time, it provides a snapshot of the UK employment situation and could affect the direction of GDP/USD. Here are the details and 5 possible outcomes for GBP/USD. Published on Wednesday … “GBP/USD: Trading the UK Claimant Count Change”
Australian Dollar Etches Small Gains After Economic Releases
The Australian dollar etched small gains against some of most-traded currencies after the release of macroeconomic reports from Australia as well as from China, Australia’s biggest trading partner. Australia’s house prices rose 1.5% in the September quarter from the previous three months, failing to reach the consensus forecast of 2.6%. The Business Confidence measured by National Australia Bank rose a bit from +4 to +5 in November. The National Bureau of Statistics of China released … “Australian Dollar Etches Small Gains After Economic Releases”
Great Britain Pound Attempts to Keep Upward Momentum
The Great Britain pound rose against most of its major rivals during the Monday’s trading session. The euro was an exception, rising against the sterling intraday, though giving up virtually all of its gains later. While Britain’s pound gained today, it looks like the currency struggles to maintain upward momentum as Brexit fears return. Finance Minister Philip Hammond, a known proponent of a “soft” Brexit, tried to alleviate such … “Great Britain Pound Attempts to Keep Upward Momentum”