Euro/dollar stepped up its game after the first round of the French elections. This is one of the factors moving the world’s most popular currency pair. Another stems from monetary policy. We then move to the US economy and Trump’s politics to complete the four factors. Will the pair continue moving higher? Cautious optimism is … “EUR/USD: Four factors that shape the next move”
Month: May 2017
EUR/USD Rallies Higher on Strong Eurozone PMI and Retail Sales Data
The EUR/USD currency pair rallied higher today after the release of strong Markit PMI data and retail sales data for the Eurozone. The currency pair’s rally was also due to the weaker US dollar as the solid rebound triggered by yesterday’s FOMC rate decision experienced a correction. The currency pair gained over 70 points at the height of its rally given the weaker US dollar as tracked by the US Dollar index, which was trading below … “EUR/USD Rallies Higher on Strong Eurozone PMI and Retail Sales Data”
Australian Dollar Lower After Economic Data & Comments from RBA Chief
The Australian dollar slid against its major rivals today as economic data from Australia and China was less than stellar. Comments from central bank’s chief Philip Lowe were not helping the matter as he was explaining dangers of high household debts to the economy. Australia’s trade balance demonstrated a surplus of A$3.11 billion in March that was lower than A$3.33 billion predicted by analysts and the February reading of A$3.66 … “Australian Dollar Lower After Economic Data & Comments from RBA Chief”
Britain’s Pound Shows No Clear Trend After Positive Services PMI
The Great Britain pound was mixed today even though the services sector Purchasing Managers’ index was good. The currency gained on such majors like the US dollar and the Japanese yen, but fell against the Swiss franc and the euro. The Markit/CIPS Services PMI advanced from 55.0 in March to 55.8 in April. The index showed the sharpest rise of the business activity since December. Forecasters missed with their promises of a decrease to 54.6. GBP/USD … “Britain’s Pound Shows No Clear Trend After Positive Services PMI”
May FOMC: Did the Fed open the door for a June hike?
The Fed sounded sanguine about the deterioration in the economic situation and this helped the dollar advance. Does this imply a rate hike in June? Here are various opinions: Here is their view, courtesy of eFXnews: May FOMC: Keeping The Door ‘Wide Open’ To A June Rate Hike – CIBC CIBC Research comments on today’s FOMC … “May FOMC: Did the Fed open the door for a June hike?”
CAD Falls vs. USD, Gains on Other Majors
The Canadian dollar fell versus its US counterpart today after the Federal Open Market Committee decided to keep its monetary policy unchanged. The currency gained on other major rivals thanks to the rally of crude oil prices. The FOMC left the federal funds rate in the range of 0.75%-1%, exactly as market participants were expecting. The Committee made some hawkish remarks in its statement, leading many analysts to claim that the Federal Reserve … “CAD Falls vs. USD, Gains on Other Majors”
USD/JPY Rallies Higher on Weaker Japanese Yen and Nikkei Holiday
The USD/JPY currency pair rallied higher today as the Nikkei was closed due to a national holiday amid increased selling pressure on the Japanese yen. The Japanese yen was much weaker than the US dollar given the higher risk sentiment in the markets, which has led to investors selling the yen, while buying the greenback. The currency pair gained over 50 points at the height of its rally given the stronger US dollar, as tracked by the US … “USD/JPY Rallies Higher on Weaker Japanese Yen and Nikkei Holiday”
US Dollar Climbs Versus Major Peers on Robust Labor Market Data
The US dollar traded higher against a basket of its main counterparts on Wednesday as bullish economic data, which showed better conditions than expected in the labor market, raised optimism between traders. The greenback rose despite anticipation for a monetary policy decision that is due to be released later today. ADP and Moody’s Analytics released a report on nonfarm employment in April at 12:15 GMT today. The report said that employers in the United … “US Dollar Climbs Versus Major Peers on Robust Labor Market Data”
Oil slips, but CAD stays put – what’s next?
After yet another disappointing inventory report for oil bulls, WTI is getting closer to the critical $47 support. However, USD/CAD is not reaching new highs. What’s next? Here are two opinions: Here is their view, courtesy of eFXnews: CAD: Momentum Traders Pile Into The Short Trade; What’s The Trade? – TD TD FX Strategy Research … “Oil slips, but CAD stays put – what’s next?”
EUR/USD Stable-to-Lower Ahead of Fed
The euro was stable against some currencies and lower versus others ahead of the Federal Reserve policy statement due to release later today. While no big changes in the Fed’s stance are expected, investors were still a bit nervous and reluctant to risk. Traders were also waiting for today’s television debates between Emmanuel Macron and Marine Le Pen before the second round of the French presidential elections this weekend. Meanwhile, … “EUR/USD Stable-to-Lower Ahead of Fed”