Dollar/CAD is trading under 1.24 ahead of the BOC decision. The team at TD sees a big air pocket on the way down. Here is their view, courtesy of eFXnews: TD FX Strategy Research notes that the focus this week for CAD traders shifts from data to policy, with the BoC meeting Wednesday. “We believe … “USD/CAD: Air Pocket Into 1.2130 But Some Profit-Taking On”
Month: September 2017
Japanese Cash Earnings Drop Unexpectedly, Yen Fails to Hold Ground
The Japanese yen was attempting to hold ground after the report that showed a drop of wages in Japan. The attempt was succeeding for some time but ultimately failed, and the currency is now trading below the opening level. Average cash earnings fell 0.3% in July instead of rising 0.5% as analysts had predicted. On a bright side, the previous month’s reading got a revision from a drop by 0.4% to an increase by the same rate. There is … “Japanese Cash Earnings Drop Unexpectedly, Yen Fails to Hold Ground”
Aussie Goes Down Even as Economic Growth Accelerates
The Australian dollar fell today even as Australia’s economic growth accelerated last quarter. Australian gross domestic product rose 0.8% on the seasonally adjusted basis in the June quarter of this year from the previous three months. The economy grew 0.3% in the March quarter. Meanwhile, fears of North Korea, which seemed to abate yesterday, returned today. AUD/USD fell from 0.7995 to 0.7976 as of 11:59 GMT today after rising to the high of 0.8020 … “Aussie Goes Down Even as Economic Growth Accelerates”
Swiss Franc Vulnerable Without Help from Risk Aversion
The Swiss franc was weak today as risk aversion on the market has petered out, making traders less interested in safety provided by the currency. Switzerland’s macroeconomic reports were not supportive to the currency either. Swiss gross domestic product rose 0.3% in the second quarter of this year. While it was an acceleration from the previous quarter’s negatively revised increase of 0.1% (0.3% before the revision), the actual growth failed to reach the 0.5% … “Swiss Franc Vulnerable Without Help from Risk Aversion”
British Pound Rallies Against US Dollar Despite Weak UK PMI Data
The British pound today rallied to new highs against the US dollar despite the release of weak Markit/CIPS UK services PMI data. The cable rallied much higher after the release of disappointing US durable goods orders early in the North American session. The currency pair rallied by over 100 points from its daily lows to hit a new monthly high of 1.3033 crossing the 1.3000 psychological barrier. The British pound’s initial rally … “British Pound Rallies Against US Dollar Despite Weak UK PMI Data”
Australian Dollar Wins in Battle Against Adverse Fundamentals
The Australian dollar rallied today despite the passive stance of the nation’s central bank and adverse domestic macroeconomic data. The possible reasons for the rally were the positive report from China, Australia’s biggest trading partner, and the improving market sentiment. The Reserve Bank of Australia kept its main interest rate unchanged at 1.5% at today’s meeting. Such decision was widely expected, and analysts believe that the RBA will keep interest rates at the current … “Australian Dollar Wins in Battle Against Adverse Fundamentals”
Rand Gains as South African Economy Exits Recession
The South African rand gained against the US dollar today as the country’s economy exited its second recession in almost a decade. South African gross domestic product rose 2.5% in the second quarter of this year on an annual basis after falling 0.6% in the previous three months. The surge of agricultural output by 34% from the previous quarter most likely played a large part in the improvement of the economy. Yet analysts were worried that the economic … “Rand Gains as South African Economy Exits Recession”
EUR/USD Trades Sideways on North Korean and Eurozone News
The EUR/USD currency pair today rallied higher after North Korea declared that it will continue its self defense measures in retaliation to the USA. The pair recovered from a brief decline that had been triggered by the release of disappointing Markit Eurozone services PMI early in the European session. The currency pair was trading in a 40 point range after opening today’s session trending downwards, but it took an upward … “EUR/USD Trades Sideways on North Korean and Eurozone News”
GBP/USD: is it time to go short?
GBPUSD Trading Setup Today I am looking at the GBPUSD pair. It seems like the daily chart looks ready to take a break. Price action is showing us first two bullish rejection candles- one of them is a pinbar. The candle from yesterday is a bearish engulfing candle. Additionally, the price is residing just below … “GBP/USD: is it time to go short?”
Canadian Dollar Starts Trading Volatile, Stabilizes Later
As most other currencies, the Canadian dollar opened sharply lower today due to risk aversion caused by the North Korean nuclear test. Yet after volatile swings, the currency stabilized and did not move far from its opening level. The Canadian dollar is considered to be a risky commodity currency as opposed to safe currencies like the yen or the franc. That makes the loonie susceptible to deterioration of the market sentiment as it demonstrated today. … “Canadian Dollar Starts Trading Volatile, Stabilizes Later”