The Chinese yuan was flat versus the US dollar during the Friday’s calm trading session as traders were waiting for economic releases from the United States. Asian currencies received a boost from the dovish comments of Federal Reserve Chairwoman Janet Yellen. Adding to the investors’ optimism, Fitch Ratings affirmed China’s credit rating at A+ with stable outlook. Now, market participants wait for macroeconomic reports from the USA, inflation data … “Chinese Yuan Stable During Friday’s Calm Trading”
Month: July 2017
GBP: Is BoE The Next Central Bank To Raise Rate;
The pound is a bit confused with the talk coming out from the Bank of England. What’s next? Here is their view, courtesy of eFXnews: BTMU FX Strategy Research notes that the BoE appears likely to be the next G10 central bank to begin raising interest rates which should offer more support for GBP heading into … “GBP: Is BoE The Next Central Bank To Raise Rate;”
Swiss Franc Reverses Rally After Disappointing PPI
The Swiss franc started the current trading session rising but reversed its movement about the same time as the disappointing Producer and Import Price Index was released. The traders’ risk-positive mentality did not help the currency either. The Swiss PPI declined 0.1% in June compared to the previous month. While the reading was not as bad the May’s drop by 0.3%, it was still worse than the median forecast that promised no … “Swiss Franc Reverses Rally After Disappointing PPI”
AUD Boosted by Market Sentiment & Domestic Data
The Australian dollar rallied today thanks to the positive general market sentiment and domestic macroeconomic data. Yesterday’s dovish comments from Federal Reserve Chair Janet Yellen led to a rally of global stocks and the risk-on mode on a currency market. In particular, carry traders became more active, buying currencies of emerging markets and currencies linked to commodities. Meanwhile, the Melbourne Institute Consumer Inflationary Expectations for Australia rose from 3.6% in June to 4.4% in July. … “AUD Boosted by Market Sentiment & Domestic Data”
USD/CAD: What’s The Post-BoC Trade? – Nomura
The Bank of Canada raised rates and also pushed forecasts and expectations higher. USD/CAD tanked. Can the C$ continue higher? Here is their view, courtesy of eFXnews: Nomura Research continues to look for another BoC rate hike by December after the central bank raised the target for the overnight rate by 25bp to 0.75% at its … “USD/CAD: What’s The Post-BoC Trade? – Nomura”
US Dollar Weakens After Janet Yellen Testifies
The US dollar fell versus its major peers (though not against the extremely weak euro) after Federal Reserve Chairwoman Janet Yellen testified before the House Financial Services Committee today. Yellen delivered a prepared testimony on the Semiannual Monetary Policy Report. While some analysts thought that her tone was neutral, most considered the testimony to be dovish. She mentioned an increase of interest rates, but only … “US Dollar Weakens After Janet Yellen Testifies”
Fed In Wait-And-See Mode; Next Hike Likely In September
What did we learn from Fed Chair Janet Yellen? Her prepared statement contained some worries about inflation, but she later balanced things out. Here is the view from SEB: Here is their view, courtesy of eFXnews: SEB Research comments on Fed Yellen’s testimony before the Congress. “Today’s testimony reinforces our view that the Fed is currently … “Fed In Wait-And-See Mode; Next Hike Likely In September”
Canadian Dollar Rallies Against US Dollar After BoC Rate Hike
The Canadian dollar today rallied higher against the US dollar after the Bank of Canada hiked its overnight lending rate by 25 bps meeting market consensus. The weaker US dollar also contributed to the USD/CAD pair’s decline as markets reacted negatively to Janet Yellen‘s testimony before Congress. The USD/CAD currency pair lost over 130 points in a span of two hours after the BoC rate hike announcement. The Bank of Canada announced … “Canadian Dollar Rallies Against US Dollar After BoC Rate Hike”
Pound Higher After UK Employment Report
The Great Britain pound rallied today following the release of an employment report that was positive for the most part. In particular, the unemployment rate fell to the lowest level in 42 years. Office for National Statistics released a report that showed an unexpected drop of the unemployment rate from 4.6% to 4.5% in the three-month period from March to May, reaching the level not seen since 1975. But average weekly earnings rose just 1.8% in the same … “Pound Higher After UK Employment Report”
Australian Dollar Rallies as Consumer Sentiment Improves
The Australian dollar rallied today as the consumer sentiment improved, though it still was not particularly great. The Westpac-Melbourne Institute Index of Consumer Sentiment rose 0.4% in July from in June. It was the first increase after three months of declines. Still, the report was not that great, saying: This is the eighth consecutive month where the Index has printed below 100 indicating that pessimists continue … “Australian Dollar Rallies as Consumer Sentiment Improves”