The Great Britain pound surged during the past trading week, propelled by interest rate hike speculations. Meanwhile, safe currencies found little demand as risk appetite came to the market. The Bank of England kept its monetary policy unchanged at this week’s policy meeting as was expected. Yet the central bank still managed to surprise market participants, signaling that an interest rate hike may happen sooner than most speculators … “Amazing Performance of Pound Caused by Interest Hike Speculations”
Month: September 2017
Euro Mixed, Prospects for QE Tapering Stay in Place
The euro was mixed today, rising versus the US dollar and the Japanese yen, but falling against the Great Britain pound and the Swiss franc. The currency continued to receive support from quantitative easing tapering expectations. Peter Praet, European Central Bank chief economist and an Executive Board member, voiced his opinion earlier this week that monetary stimulus should stay in place. He argued that the current strong economic … “Euro Mixed, Prospects for QE Tapering Stay in Place”
US Dollar Drops Against Major Peers as Retail Sales Fail to Meet Estimates
The US dollar fell against the euro and other major currencies on Friday as retail sales in the United States unexpectedly declined last month. The retail sales drop was the first since June, which pushed an index that tracks the greenback to the weakest level in about a week. US consumers were reluctant to spend more in August, which caused a 0.2% drop in retail sales as was reported today by the US Census Bureau. Analysts forecasted … “US Dollar Drops Against Major Peers as Retail Sales Fail to Meet Estimates”
GBP/USD Rallies to New Highs on BoE’s Vlieghe Hawkish Comments
The GBP/USD currency pair today rallied to new highs following hawkish comments by the Bank of England‘s MPC member Gertjan Vlieghe. The policy-maker’s comments were taken from his early morning speech on ‘real interest rates and risks‘ and published by Reuters. The currency pair rallied by over 200 points after Vlieghe’s comments to extend yesterday’s rally, which was triggered by the hawkish tone in the BoE minutes. The pair’s rally was mainly triggered … “GBP/USD Rallies to New Highs on BoE’s Vlieghe Hawkish Comments”
NZ Dollar Gains as Manufacturing Continues to Expand
The New Zealand dollar gained today as domestic data revealed that the New Zealand manufacturing sector continued to expand with accelerating pace last month. The seasonally adjusted BusinessNZ Performance of Manufacturing Index climbed from 55.5 to 57.9 in August. The reading above 50.0 indicates that the sector is expanding, and it was doing so since October 2012. The New Zealand dollar reacted positively to the news, while ignored, as many … “NZ Dollar Gains as Manufacturing Continues to Expand”
Swiss Franc Sees No Support from North Korean Missile Launch
The Swiss franc was stable today against some majors and continued to fall versus the very strong Great Britain pound. North Korea launched yet another missile, but that had little impact on markets, showing that market participants feel no need for safety. With that said, currently the franc is starting to move higher. North Korea launched a missile over northern Japanese island Hokkaido today. … “Swiss Franc Sees No Support from North Korean Missile Launch”
USD/CAD Spikes to New Highs on US CPI Data Then Quickly Erases Gains
The USD/CAD currency pair today spiked briefly to new highs after the release of positive US CPI data, but quickly erased most of its gains to continue trading sideways. The release of Canada’s new housing price index might have contributed to the pullback despite being lower than the previous figure. The USD/CAD currency pair spiked to hit a daily high of 1.2239 before retracing most of its gains to trade below the 1.2200 … “USD/CAD Spikes to New Highs on US CPI Data Then Quickly Erases Gains”
British Pound Jumps as Policymakers Signal Interest Rate Hike
The British pound jumped against its major counterparts on Thursday after UK policymakers hinted that interest rates may be raised relatively soon. The Bank of Englandâs Monetary Policy Committee stated that UK interest rates were maintained at 0.25% after concluding its latest policy meeting. Members of the committee voted 7–2 for the decision, which was widely expected by analysts. The central bankâs quantitative easing program was … “British Pound Jumps as Policymakers Signal Interest Rate Hike”
US Dollar Gains Against Euro on Positive US CPI Data
The US dollar today gained slightly against the euro after the release of better than expected US CPI data in the American session. The empty European docket could not provide enough impetus to the single currency, which offered resistance and recovered after its initial decline. The EUR/USD currency pair was trading in a 40 point range for most of today’s session as euro refused to cede ground to the US dollar, but the CPI data … “US Dollar Gains Against Euro on Positive US CPI Data”
New Zealand Dollar Stable, Ignores China’s Lackluster Data
The New Zealand dollar was stable today even as China’s macroeconomic data was disappointing, dragging Asian stocks down. China is the biggest trading partner of New Zealand, therefore economic performance of the Asian nation often strongly affects the South Pacific currency. The National Bureau of Statistics of China reported that industrial production rose 6.0% in August from a year ago, less than the forecast of 6.6% and the previous month’s growth … “New Zealand Dollar Stable, Ignores China’s Lackluster Data”