The US dollar rose against its major rivals, with the exception of the Great Britain pound, on Friday. But fundamentally the currency remained very vulnerable. Major central banks around the world shifted their stance on monetary policy, signaling that an end to the age of extra loose policy may come soon. And while the US Federal Reserve was the first one to embark on tapering of monetary stimulus, market participants doubt that it … “US Dollar Gains on Friday, Still Vulnerable”
Month: June 2017
Canadian Dollar Pushes Higher, Ignoring Domestic Economic Data
The Canadian dollar rallied today, touching the highest level since September against its US counterpart, even while domestic macroeconomic data was not helpful to Canada’s currency. Canadian gross domestic product rose 0.2% in April, exactly as forecasters predicted. It was a slower growth than March’s 0.5%. The Industrial Product Price Index fell 0.2% in May. The Raw Materials Price Index declined 1.8%. Both indicators … “Canadian Dollar Pushes Higher, Ignoring Domestic Economic Data”
EUR/USD Maintains Losses After Release of Positive US Data
The EUR/USD currency pair today maintained the losses it accumulated during the early European session despite the release of positive US data in the North American session. The currency pair was under intense selling pressure from the beginning of today’s session, but did not decline significantly after the release of positive US personal income data. The currency pair lost about 50 points at the height of its decline during the European session. … “EUR/USD Maintains Losses After Release of Positive US Data”
British Pound Edges Lower Against US Dollar on Lackluster Consumer Spending
The British pound edged lower against the US dollar on Friday in the wake of consumer spending data that revealed that British consumers continued to suffer from weak spending power. Fresh readings for business investment and gross domestic product met expectations, which left the British currency vulnerable to a slew of other economic releases. The UK Office for National Statistics released a report on household spending on goods and services this morning, which stated … “British Pound Edges Lower Against US Dollar on Lackluster Consumer Spending”
CAD: The Loonie Takes Flight; What’s The Trade? – SocGen
The Canadian GDP report came out as expected and did not stop the Canadian dollar. USD/CAD is firmly under 1.30. What’s next? Here is their view, courtesy of eFXnews: Societe Generale FX Strategy Research notes that the hawkish commentary from Bank of Canada officials this month has taken the FX market by storm. “The signal from … “CAD: The Loonie Takes Flight; What’s The Trade? – SocGen”
Japanese Yen Rallies Despite Underwhelming Economic Reports
The Japanese yen rallied against its most-traded rivals today even though macroeconomic data released in Japan during the trading session was not particularly good for the most part. The possible reason for the currency’s gains was the slump of global stocks caused by signs that central banks around the world are planning to drop monetary stimulus. Japan’s core Consumer Price Index rose 0.4% in May from a year ago, matching … “Japanese Yen Rallies Despite Underwhelming Economic Reports”
Australian Dollar Fails to Keep Gains
The Australian dollar rallied on the back of positive China’s macroeconomic data released today but was unable to follow through with the rally. The currency trimmed its gains versus the euro and the Swiss franc and lost them completely against the US dollar and the Japanese yen. China’s official manufacturing Purchasing Managers’ Index rose from 51.2 in May to 51.7 in June, while analysts predicted a drop to 51.0. The non-manufacturing PMI increased from 54.5 … “Australian Dollar Fails to Keep Gains”
US Dollar Extends Decline Against Major Currencies Despite Positive GDP Data
The US dollar extended a drop against the euro on Thursday, despite data that revealed the US economy was stronger than previously estimated in the first quarter of 2017. An index that tracks the strength of the greenback against other main counterparts touched its weakest level today since October 2016 as the US currency continued to tumble lower. According to a fresh report from the Bureau of Economic Analysis, higher consumer spending and stronger exports … “US Dollar Extends Decline Against Major Currencies Despite Positive GDP Data”
Yen Trims Initial Losses on Thursday
The Japanese yen fell against its major peers during the Thursday’s trading session but managed to trim its losses by now and even erased them completely versus the US dollar. Bank of Japan board member Yutaka Harada signaled today that the central bank may reduce buying of exchange-traded funds if inflation reaches the bank’s target of 2%: The BOJ is buying ETFs to stimulate the economy and achieve its 2 … “Yen Trims Initial Losses on Thursday”
CAD Touches Highest Since February vs. USD
The Canadian dollar gained against its US counterpart today, reaching the highest level since February. The currency trimmed its gains by now, though, and fell versus other most-traded peers. Stephen Poloz, Bank of Canada Governor, made hawkish remarks yesterday, leading to speculations that the BoC is going to hike interest rates later this year. It looks like central banks around the world are changing there … “CAD Touches Highest Since February vs. USD”