The US dollar was not performing well lately, falling for three consecutive weeks against its most-traded peers. What the future holds for the greenback and what news, reports, and events may turn the tide in favor of the US currency? The past trading week was rough for the dollar due to the unexpectedly dovish policy minutes of the Federal Reserve Open Market Committee. FOMC members were particularly concerned about sluggish inflation. While that did … “US Dollar Outlook: Events to Watch After Thanksgiving Week”
Month: November 2017
What Goes Up Must Eventually Come Down: The Bust of Universally High Asset Prices
In 1952, the motto of the US Democratic party was, “You never had it so good”. Well, have those times come around again? Following the rocky ride since the banking crisis of 2008, many world markets have recovered and indeed exceeded their previous heights. So, will history repeat itself? Will we witness further financial meltdowns … “What Goes Up Must Eventually Come Down: The Bust of Universally High Asset Prices”
Euro Rebounds After Drop During Week
The past trading week was rather quiet due to Thanksgiving in the United States. With little going on in the USA, markets’ attention turned to Europe. Germany was in the spotlight due to its political issues, which sent the euro down during the week, though the currency recovered by the weekend. The week started poorly for the shared 19-nation currency as news came out about failed negotiations for coalition between the Christian Democratic Union led by German Chancellor … “Euro Rebounds After Drop During Week”
USD/CAD: Break Of 1.2675 To Confirm Downside Remains Intact; Staying Short – TD
The Canadian dollar was pushed higher by rising oil prices but held back by worries about the Canadian economy. What’s next? Here is their view, courtesy of eFXnews: TD FX Strategy Research discusses USD/CAD outlook in light of the downside surprise in Canada’s retail sales report this week. “In spite of the deceleration in data … “USD/CAD: Break Of 1.2675 To Confirm Downside Remains Intact; Staying Short – TD”
EUR/USD: Turning Tactically Bullish; Upside Targeting 1.2050 – BTMU
We have seen how EUR/USD finds any excuse to rise and rise a bit more. The team at BTMU updates the targets for the pair: Here is their view, courtesy of eFXnews: BTMU FX Strategy Research discusses EUR/USD outlook for the coming week, and makes the case for further upside towards 1.2050 and expects 1.1650 to … “EUR/USD: Turning Tactically Bullish; Upside Targeting 1.2050 – BTMU”
Euro Rallies to New Highs Against US Dollar on German IFO
The euro today rallied to new 6-week highs against the US dollar after the release of the German IFO business climate data for November. The euro seemed to ignore the ongoing political woes facing Angela Merkel in Germany even as the three-way coalition talks fell apart. The EUR/USD currency pair rallied by about 40 points from its daily low of 1.1835 to hit a high of 1.1875 after the release of the German IFO data. The release of the German … “Euro Rallies to New Highs Against US Dollar on German IFO”
Accelerating Growth of Manufacturing Doesn’t Help Japanese Yen
The Japanese yen fell today even though Japan’s manufacturing sector was expanding with an accelerating pace this month. The Nikkei Flash Japan Manufacturing PMI climbed from 52.8 in October to 53.8 in November. That is instead of falling to 52.6 as was predicted by analysts. The index stood at the strongest level since March 2014. USD/JPY ticked up from 111.20 to 111.35 as of 8:30 GMT today, touching the high of 111.55 intraday. … “Accelerating Growth of Manufacturing Doesn’t Help Japanese Yen”
NZ Dollar Falls as Trade Deficit Narrows Less Than Expected
The New Zealand dollar was soft today as the nation’s trade deficit narrowed last month but still came out above expectations. The New Zealand trade balance posted a deficit of NZ$871 million in October. While it was lower than the NZ$1,156 million figure in September, the actual value was above the forecast NZ$750 million. The growth of exports was led by milk powder, butter, and cheese, while the major component in the increase … “NZ Dollar Falls as Trade Deficit Narrows Less Than Expected”
Dollar Stabilizes After Wednesday’s Sell-Off
The US dollar stabilized after yesterday’s sell-off caused by mixed macroeconomic reports and minutes of the October-November policy meeting of the Federal Open Market Committee. FOMC members voiced concern about sluggish inflation but had mixed view on how that should affect monetary policy. Some argued that it warrants more gradual monetary tightening: A number of these participants were worried that a decline in longer-term inflation expectations would … “Dollar Stabilizes After Wednesday’s Sell-Off”
Euro Lifted by Positive Data During Thursday’s Trading
The euro rallied today thanks to the very positive macroeconomic reports released during the current trading session. The accounts of the monetary policy meeting released by the European Central Bank had no material impact on the markets, though they contained some interesting information. Almost all PMI reports for the euro-area released by IHS Markit today were better than expected, be it for Germany, France, or the whole eurozone. The only exception was the French … “Euro Lifted by Positive Data During Thursday’s Trading”