The dollar edged higher against the euro and the Japanese yen on Friday. Investors speculated that the US currency will continue strengthening next week due to an anticipated monetary policy decision from the Federal Reserve. The dollarâs steady climb today followed a sharp gain on Thursday that resulted from the European Central Bankâs announcement that it will be reducing the value of its quantitative easing program from April. However, it … “US Dollar Maintain Its Gains Before Federal Reserve’s Meeting”
Month: December 2016
Australian Dollar Stages Bounce After China’s Data
The Australian dollar rallied today after diving intraday. The currency managed to stage a bounce after China’s economic data surprised economists pleasantly. The National Bureau of Statistics of China reported that the Consumer Price Index rose 2.3% in November from a year ago, a bit more than analysts had predicted (2.2%). The Producer Price Index was up 3.3% whereas the median forecast was also at 2.2%. Australia, being the trading … “Australian Dollar Stages Bounce After China’s Data”
Japanese Yen Drops amid Rally of Global Stocks
The Japanese yen dropped against other most-traded currencies (even the euro that dropped sharply yesterday) as the rally of global stocks limited demand for safety provided by the Japanese currency. Shares around the world rallied after the European Central Bank announced yesterday prolongation of its quantitative easing. As a result, speculators showed little interest in buying safe haven assets, like the yen. The fall of the currency was not big, though, as markets felt … “Japanese Yen Drops amid Rally of Global Stocks”
Euro Sharply Drops Against US Dollar as ECB Lengthens Its Bond Purchases
The euro experienced volatile movements against the US dollar on Thursday as investor read into the European Central Bankâs policy announcement earlier today. During its latest policy meeting, the central bank decided to extend the period for which its bond purchase program will last. The European Central Bank said in a press release that its Governing Council decided to keep its interest rates unchanged, in line with expectations. The council … “Euro Sharply Drops Against US Dollar as ECB Lengthens Its Bond Purchases”
CAD Post-BoC: 5 Reasons To Stay Bearish CAD Medium-Term
The Bank of Canada ended 2016 in a quiet manner, very different from bigger central banks. What’s next for the Canadian dollar? Here is the view from Nomura: Here is their view, courtesy of eFXnews: As expected, the Bank of Canada (BoC) kept it policy rate unchanged at 0.5%, reiterating that “the current stance of … “CAD Post-BoC: 5 Reasons To Stay Bearish CAD Medium-Term”
Draghi’s 5 dovish moves – more falls for EUR/USD?
After over-promising and underdelivering, Draghi went back to his old self, and slammed the euro hard. At first, the initial headlines screamed “tapering”. Indeed, the ECB will reduce its bond buys from April 2017. However, the rest was very dovish. Here are the 5 dovish moves made by Mario Draghi, and why the euro could continue falling, … “Draghi’s 5 dovish moves – more falls for EUR/USD?”
EUR/USD: Trading the UoM Consumer Sentiment
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy and is bullish for the US dollar. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday at 15:00 GMT. … “EUR/USD: Trading the UoM Consumer Sentiment”
New Zealand Dollar Firm After Wheeler’s Speech
The New Zealand dollar rallied today (though it has backed off from daily highs by now) following the speech of the central bank’s chief that was considered by markets to be rather hawkish. Graeme Wheeler, Governor of the Reserve Bank of New Zealand, delivered a speech close to the end of the previous trading session. In it, he said that the trend for lower interest rates and a stronger currency “may finally be turning.” Markets … “New Zealand Dollar Firm After Wheeler’s Speech”
Yen Jitters After Final GDP Disappoints
The Japanese yen rose against the US dollar but fell against such currencies as the euro and the Great Britain pound today as Japan’s economic growth failed to meet economists’ expectations. Gross domestic product was finalized at 0.3% growth in the September quarter of this year, just half of the 0.6% growth rate predicted by experts. The GDP Deflator fell 0.2%, also two times worse than forecasts, which had promised a decrease … “Yen Jitters After Final GDP Disappoints”
EUR Into ECB: Room For Disappointment Or/And Profit Taking
A Draghi drag or top-tapering? This is our preview and we continue bringing you other views. Here is the one from Bank of America Merrill Lynch: Here is their view, courtesy of eFXnews: Based on fundamentals, the ECB policy decision to continue its loose monetary policy stance should not be in doubt. As we noted, Euro … “EUR Into ECB: Room For Disappointment Or/And Profit Taking”