The Canadian dollar gained on its major rivals today, propelled by positive macroeconomic data and gains of crude oil prices. Crude oil logged big gains, rallying more than 1% today. Crude advanced as US stockpiles decreased more than was expected, easing concerns about oversupply on the market. Canada’s manufacturing sales gained 1.1% in May, rising for the third consecutive month. The actual increase was above the median forecast … “Canadian Dollar Propelled by Economic Data & Oil Prices”
Month: July 2017
Pound Falls for Third Consecutive Session, Avoids Losses vs. Euro
The Great Britain pound fell today, declining for the third day in a row against its major rivals. The euro was an exception as the sell-off ahead of the policy announcement from the European Central Bank made the shared 19-nation currency even weaker than the currency of the United Kingdom. Previously, the sterling was getting support from expectations of monetary tightening from the Bank of England. But the central bank signaled that its decision will be … “Pound Falls for Third Consecutive Session, Avoids Losses vs. Euro”
US Dollar Rises Against Main Counterparts on Strong Housing Data
The US dollar climbed against a basket of other major currencies on Wednesday, following the release of strong housing data that improved the short term outlook. The greenback still remained near its weakest level since the third quarter of last year after suffering from sharp losses over the past two weeks. In a joint report, the US Census Bureau and the US Department of Housing and Urban Development announced that building permits increased … “US Dollar Rises Against Main Counterparts on Strong Housing Data”
NZ Dollar Gains on Market Sentiment, Pays No Heed to Inflation
The New Zealand dollar rose today on the positive market sentiment. Yesterday’s disappointing inflation data did not prevent today’s rally. Released yesterday, the Consumer Price Index showed no change in the June quarter from the previous three months. That is compared to the median forecast of a 0.2% growth and the 1.0% increase in the March quarter. Yet the market sentiment was favorable to riskier currencies, allowing the New Zealand dollar to largely ignore … “NZ Dollar Gains on Market Sentiment, Pays No Heed to Inflation”
Australian Dollar Rallies Undisturbed by Poor Data
The Australian dollar continued to rise today following yesterday’s surge. The poor macroeconomic data released over the current session did not bother the currency much. Yesterday’s rally was caused by the policy minutes of the Reserve Bank of Australia, which market participants considered hawkish. The notes showed that Australian policy makers targeted 3.5% as the neutral level for the key interest rate, and that is far above the current 1.5%. As for today’s data, … “Australian Dollar Rallies Undisturbed by Poor Data”
Is the Canadian dollar too strong for the BOC?
USD/CAD collapsed on the hawkishness of the BOC and the weakness of the US dollar. Has it gone too far? Here are two opinions: Here is their view, courtesy of eFXnews: USD/CAD: Loonie Strength To Send BoC To The Sidelines; Where To Target? – CIBC CIBC FX Strategy Research argues that while CAD strength could extend … “Is the Canadian dollar too strong for the BOC?”
EUR/USD: Overbought After 1.15 Break; What’s The Trade? –
EUR/USD made a big break and is already eyeing 1.16. Has it gone too far? Here is the view from Danske: Here is their view, courtesy of eFXnews: Danske Bank FX Strategy Research notes that EUR/USD has entered into an overbought territory after breaking above 1.15 overnight, driven by general USD weakness after Republican Senate majority … “EUR/USD: Overbought After 1.15 Break; What’s The Trade? –”
EUR/USD Tests New Yearly Highs on Weak US Dollar
The EUR/USD currency pair today rallied to new yearly highs based on US dollar weakness triggered by the failure of Donald Trump‘s administration to repeal Obamacare. The currency pair rallied higher on news that two more Republican senators had defected and would not support the US Senate’s attempt to repeal and replace the Affordable Care Act (ACA). The currency pair gained over 100 points at the height of its rally as the US dollar demonstrated … “EUR/USD Tests New Yearly Highs on Weak US Dollar”
British Pound Drops Against US Dollar on Weak Inflation Data
The British pound today dropped sharply against the US dollar after the release of weak inflation figures by the Office for National Statistics. The major decline in the sterling highlighted the fact that that the currency was extremely susceptible to monetary policy speculation. The weak inflation figures also signaled that a rate hike by the Bank of England might not be forthcoming this year. The GBP/USD currency pair lost over 100 points at the height of its … “British Pound Drops Against US Dollar on Weak Inflation Data”
Euro Rallies Even as Inflation Slows, ECB in Focus
The euro was up against its major rivals during the current trading session even though today’s report confirmed a slowdown (albeit small) of eurozone inflation. Eurostat reported today that eurozone inflation was at 1.3% in June according to the final estimate, down from 1.4% in May. It was unchanged from the preliminary data. That is not a good sign ahead of this week’s policy meeting of the European Central … “Euro Rallies Even as Inflation Slows, ECB in Focus”