The Turkish lira was stable against the US dollar after Turkey’s central bank decided at today’s meeting to keep interest rates unchanged. The Central Bank of the Republic of Turkey maintained its interest rates without change, including the Marginal Funding Rate that stayed at 9.25%. Such decision was expected by basically everyone as the central bank needs to keep monetary policy tight to combat two-digit inflation. Indeed, the bank said about … “Turkish Lira Stable After Central Banks Maintains Tight Policy”
Month: July 2017
US Dollar Rallies Against Peers on Positive Durable Goods Orders
The US dollar today rallied against its main peers such as the euro and the Japanese yen after the release of positive US durable goods orders by the Census Bureau. The buying interest in the US dollar seems to have increased overnight, despite the FOMC maintaining interest rates at their current levels during yesterday’s meeting. The US Dollar Index, which tracks the greenback’s performance against its main trading partners, was trading above … “US Dollar Rallies Against Peers on Positive Durable Goods Orders”
Australian Dollar Struggles to Keep Gains, Data Weighs
The Australian dollar rallied today, following yesterday’s policy statement from the Federal Reserve. The currency struggled to maintain gains, though, as today’s macroeconomic data was unfavorable. Yesterday, the Fed released a statement that was considered by most market participants to be dovish, and it bolstered riskier currencies. Yet the Aussie had troubles preserving bullish momentum, and the drop of Australia’s Import Price Index by 0.1% in the June from the previous three months … “Australian Dollar Struggles to Keep Gains, Data Weighs”
Brazilian Real Higher After Interest Rate Cut
The Brazilian real rallied against the US dollar today after the Federal Reserve released a dovish policy statement and Brazil’s central bank cut its key interest rate. The Central Bank of Brazil cut the Selic rate by one percentage point to 9.25%, in line with expectations. It was the first time since November 2013 when the interest rate was set below 10%. Moreover, the central bank signaled that it … “Brazilian Real Higher After Interest Rate Cut”
USD/CAD Drops to Two-Year Low After Fed Statement
The Canadian dollar gained to the highest level in two years versus its US counterpart today after the Federal Reserve released a relatively dovish policy statement. The loonie also rallied against the weak Swiss franc but dropped versus the euro and Japanese yen. The Federal Reserve concluded its two-day meeting on Wednesday, releasing a statement that was considered dovish by markets. That led to a drop of the US dollar against other currencies, … “USD/CAD Drops to Two-Year Low After Fed Statement”
Swiss Franc Drops as Traders Seek Assets with Higher Yield
The Swiss franc dropped today as the market sentiment was not favorable to currencies considered to be a safe haven. Analysts explained the drop of the Swissie by the risk-on market mentality as traders were hoarding assets such as stocks and commodities. Meanwhile, the UBS consumption indicator printed 1.38 in June, up from the downwardly revised May figure of 1.32. Despite the increase, the report said that the indicator is “pointing to subdued growth in Swiss private consumption … “Swiss Franc Drops as Traders Seek Assets with Higher Yield”
US Dollar Climbs Against Euro Ahead of Fed Meeting
The US dollar edged higher against the euro on Wednesday, ahead of the latest statement from the Federal Open Market Committee, which is expected to contain a decision to keep rates unchanged. Traders appear to have ignored a disappointing number for new home sales in June in anticipation for remarks from the monetary policy committee relating to interest rates in the near future. In a joint release, the US Census Bureau and the US Department of Housing and Urban Development said … “US Dollar Climbs Against Euro Ahead of Fed Meeting”
British Pound Rallies Against US Dollar on Positive GDP Data
The British pound today rallied higher against the US dollar after the release of preliminary UK GDP data for the second quarter, which met expectations. The British pound initially dropped after the GDP announcement before gaining traction and rallying higher against the US dollar after British finance minister Philip Hammond‘s comments on Brexit. The GBP/USD currency pair gained over 60 points at the height of its rally from a daily low … “British Pound Rallies Against US Dollar on Positive GDP Data”
No more rate hikes this year, 3 in 2018 – BNPP
The Fed is set to make its decision today and the focus is on the word “transitory”. However, the bigger decisions are still down the road. The team at BNP Paribas changed their forecasts for the next rate hikes. Here is their view, courtesy of eFXnews: BNP Paribas economists have made significant changes to their forecast … “No more rate hikes this year, 3 in 2018 – BNPP”
NZ Dollar Rallies with Help from Widening Trade Surplus
The New Zealand dollar rallied today, boosted by a better-than-expected trade balance. Dovish comments of a central bank official had limited impact on the currency. New Zealand’s trade surplus was at NZ$242 million in June, up from NZ$74 million in the previous month. The actual value was above the consensus forecast of NZ$147 million. John McDermott, Reserve Bank of New Zealand Assistant Governor, said in today’s speech: Over time, the neutral interest … “NZ Dollar Rallies with Help from Widening Trade Surplus”