The US dollar was generally firm today following the release of positive macroeconomic indicators in the United States. The testimony of Fed Chair nominee Jerome Powell did little to disrupt markets, and it is expected that he will continue the policy of incumbent Chair Janet Yellen. Virtually all of Tuesday’s US reports were good, beating market expectations. House prices rose faster than anticipated, the manufacturing index demonstrated a surprising … “US Dollar Firm, Supported by Economic Data”
Month: November 2017
USD/CAD Rallies Higher on BoC’s Financial System Review
The USD/CAD currency pair today rallied higher after the release of the Bank of Canadaâs Financial System Review. The currency pair was on an uptrend for most of today’s session mainly boosted by the negative sentiment around global oil prices given that the Canadian dollar is a commodity-linked currency. The USD/CAD currency pair rallied higher by over 70 points from its daily low to hit a high of 1.2824 in the American session. The release of the Canadian industrial … “USD/CAD Rallies Higher on BoC’s Financial System Review”
Euro Rallies Briefly Against US Dollar on Disappointing US Data
The euro today rallied higher briefly against the US dollar after the release of disappointing US advance goods trade balance in the early American session. The pair was on a downtrend for most of the European session despite the release of the OECD Economic Outlook report in the early European session. The EUR/USD currency pair rallied higher after the release of the US data to hit a high of 1.1900, which is a lower resistance level than its daily high … “Euro Rallies Briefly Against US Dollar on Disappointing US Data”
Pound Remains Pressed by Brexit Worries
The Great Britain pound declined today, continuing to be dragged down by worries about the Brexit. Today’s news looked positive for the sterling as British banks passed the stress test performed by the Bank of England. But BoE Governor Mark Carney warned that the situation may deteriorate in case of a messy Brexit: The combination of a disorderly Brexit, a severe global recession and stressed misconduct costs could result in more severe conditions than in the stress test. … “Pound Remains Pressed by Brexit Worries”
Japanese Yen Stable During Quiet Tuesday Trading
The Japanese yen was mostly stable during quiet Tuesday trading following decent monthly performance. Traders were waiting for news that could determine the direction for the currency. The yen has rallied more than 2% against the US dollar during this month so far and gained on most other major currencies as well. The main drivers for the rally were decent Japanese economic data and speculations that the Bank of Japan may … “Japanese Yen Stable During Quiet Tuesday Trading”
Canadian Dollar Drops, Following Crude Oil
The Canadian dollar fell on Monday, following the sharp decline of North American crude oil. The week ahead have several important events in store for the currency, especially on Friday. The loonie dropped as North American crude oil lost more than 1% of its value on Friday. One of the reasons for the drop was news about reopening of the Keystone Pipeline, which brings crude from Canadian oilfields to US refineries. Oil is the major export … “Canadian Dollar Drops, Following Crude Oil”
EUR/USD: Range Shifted Higher & Bounce Not Stretched Yet – Danske
EUR/USD began the trading week with an increase to higher ground, extending its gains. Yet then, the better data from the new home sales halted the dollar decline consequently sending EUR/USD back down. What’s next? Here is their view, courtesy of eFXnews: Danske Bank FX Strategy Research summarized its short-term market views on EUR/USD, noticing … “EUR/USD: Range Shifted Higher & Bounce Not Stretched Yet – Danske”
Dollar Erases Earlier Losses on Monday, Unable to Outperform Yen
The US dollar started the week soft, falling against basically all its major peers. But the greenback managed to turn the momentum up following the release of a very positive housing report. Now, the US currency trades either higher, or at least flat versus most of rivals, though the Japanese yen was a major exception. With plenty of events ahead during the week, investors were reluctant to purchase the dollar. Yet the US housing … “Dollar Erases Earlier Losses on Monday, Unable to Outperform Yen”
Fed minutes signal inflation and asset valuation concerns
The FOMC meeting minutes released last week showed no major deviations from the main themes. The central bank indicated that it is preparing to hike interest rates in December. Citing broadly upbeat growth and the tightening labor market including consumer spending, the central bank officials are all set to hike interest rates at the next … “Fed minutes signal inflation and asset valuation concerns”
South African Rand Jumps More Than 2%
The South African rand jumped more than 2% versus the US dollar today after plunging 2% on Friday. The rand reached the highest level in a month and demonstrated the biggest jump in more than eight months. The moves of the currency was a reaction to decisions of rating agencies. The rand slumped on Friday after Standard & Poor’s downgraded South Africa’s sovereign credit rating to junk: The long-term local currency sovereign credit rating was … “South African Rand Jumps More Than 2%”