The FOMC meeting minutes talked about hiking relatively soon, but did not provide a smoking gun and the US dollar dropped. Various commercial banks have reacted to the publication, which also consists of talk about a reduction in the balance sheet. Nevertheless, a hike in June is a common thread. Are they correct? Here is … “FOMC reactions – banks see June hike – are they correct?”
Month: May 2017
US Dollar Declines as FOMC Minutes Offer Dovish Interest Rates Outlook
The US dollar gave up some of its earlier gains on Wednesday to decline against other major currencies following the release of the Federal Open Market Committeeâs latest meeting minutes. The greenback, which had suffered against the euro in recent sessions amid political risks in the United States, returned to fall against the shared currency despite initial gains today due to the dovish outlook offered by the minutes. The Federal Reserve released the minutes of its … “US Dollar Declines as FOMC Minutes Offer Dovish Interest Rates Outlook”
Euro Declines Slightly Against US Dollar on Mario Draghi Comments
The euro today declined slightly against the US dollar after Mario Draghi, the European Central Bank President, made dovish comments in support of the bank’s quantitative easing program. Mario Draghi ignored comments made by Angela Merkel the German Chancellor earlier this week where she clearly stated that the ECB’s dovish policies were hurting the German economy. The currency pair was trading in a 50 point range for much of European … “Euro Declines Slightly Against US Dollar on Mario Draghi Comments”
Canadian Dollar Jumps as BoC Statement Doesn’t Show Dovishness
The Canadian dollar jumped following the monetary policy meeting of the Bank of Canada as the central bank’s statement turned out to be not as dovish as market participants were expecting. The BoC left its main interest rate at 0.5% as was widely expected. Markets also expected a dovish statement, especially after inflation missed economists’ projections. Yet instead, the central bank voiced optimism about both global and domestic economies, stating about … “Canadian Dollar Jumps as BoC Statement Doesn’t Show Dovishness”
Improving Trade Balance Helps NZ Dollar Weather China’s Downgrade
The New Zealand dollar fell together with other commodity currencies after the surprise cut of China’s credit rating (the fact that the Asian country is the biggest trading partner of New Zealand was not helping the matter). Yet the currency has recovered as of now, partially due to the help of positive domestic data. New Zealand’s trade balance showed a surplus of NZ$578 million in April, up from NZ$277 million in March, reaching … “Improving Trade Balance Helps NZ Dollar Weather China’s Downgrade”
Chinese Yuan Falls After Moody’s Downgrade, Recovers
The Chinese yuan slipped against the US dollar today (though it has trimmed the losses by now) after Moody’s Investor Service made a surprise cut of China’s credit rating for the first time in almost three decades. Moody’s reduced the country’s sovereign grade from Aa3 to A1 and changed the outlook from negative to stable. The rating agency cited following considerations for its decision: The downgrade reflects Moody’s expectation that China’s financial … “Chinese Yuan Falls After Moody’s Downgrade, Recovers”
CAD: Busy 24 hours with the BOC and OPEC
The Canadian dollar recovered after the big blows, thanks to the bounce in oil prices. Will OPEC deliver on May 25th? The loonie also faces the Bank of Canada, which may be more dovish given the recent slide in inflation. What can we expect? Here are four opinions: Here is their view, courtesy of eFXnews: CAD … “CAD: Busy 24 hours with the BOC and OPEC”
US Dollar Struggles to Rise on Disappointing Data and Political Risks
The US dollar struggled to rise against the euro and other major currencies on Tuesday as traders continued to be concerned about political instability in the United States. The greenback was met by additional resistance as it attempted to move higher today due to a drop in new home sales and a disappointing reading for an index that tracks manufacturing activity. Concerns about possible delays in Donald Trumpâs plans to stimulate the economy continued to linger today in the wake of a controversy … “US Dollar Struggles to Rise on Disappointing Data and Political Risks”
Euro Declines Against US Dollar Despite Positive Eurozone PMI Data
The EUR/USD currency pair today hit a new session high during the European session before retracing all of its gains during the North America session. The pair had rallied higher on positive Markit Eurozone Composite PMI data and Germany’s Manufacturing PMI data, which met expectations. The currency pair rallied to a new daily high of 1.1269 during the early European session after the positive economic releases from the Eurozone, but later … “Euro Declines Against US Dollar Despite Positive Eurozone PMI Data”
EUR/USD: Rallied ‘Very Far, Very Rapidly’ – What’s Next?
EUR/USD reached a new high of 1.1267, just 33 pips short of the US elections high of 1.13. Did it go up too fast? Here is their view, courtesy of eFXnews: Danske Bank FX Strategy Research notes that EUR/USD has moved very far, very rapidly in a very short period on the ongoing accelerated repricing of both … “EUR/USD: Rallied ‘Very Far, Very Rapidly’ – What’s Next?”