The US dollar fell this week due to the fears of trade wars and disappointment after the monetary policy announcement by the Federal Reserve. The United States decided to start a trade war with China, and that was the major theme of the week, which was weighing on the dollar. The Fed raised interest rates, as was expected, but did not announce additional interest rate hike in 2018, keeping intact the plan for three rate hikes in total … “US Dollar Ends Week Soft After Fed Announcement, Trade Wars”
Month: March 2018
USD: A Weaker USD Is ‘Clearly’ Part Of Trump’s Economic Plan – ING
The US dollar dropped against its peers and especially against the Japanese yen. Fears of a trade war have risen. Perhaps this is not by chance. Here is their view, courtesy of eFXnews: ING Research discusses the USD outlook in light of the ongoing escalation of trade tensions between the US and China. “Yesterday’s announcement of 25% … “USD: A Weaker USD Is ‘Clearly’ Part Of Trump’s Economic Plan – ING”
What are trade wars and how do they affect currencies
Trump’s tariffs on steel and aluminum put the phrase “trade wars” back into vogue. What are trade wars? How do they move currencies? What can we expect going forward? Here are some answers to trade wars. What are trade wars? The term trade war refers to countries imposing tariffs or other trade limitations such as … “What are trade wars and how do they affect currencies”
A lot of thin air between USD/CAD and the next support line — Confluence Detector
The Technical Confluences Indicator shows that the USD/CAD broke under a dense cluster of technical support levels around C$1.2915 on its way down. This level is the confluence of the SMA50-15m, the SMA-10-4h, the SMA5-1h, the SMA10-1h, the SMA200-15m, the Bolinger Band 1h Middle-Stdv, the SMA100-15m and more lines. This dense cluster now turns into strong resistance. The pair fell … “A lot of thin air between USD/CAD and the next support line — Confluence Detector”
Yen Firm on Risk Aversion, Pays Little Attention to Accelerating CPI
The Japanese yen gained at the start of Friday’s trading session and was trading sideways since then. The currency largely ignored positive domestic macroeconomic data, and the likely reason for the previous rally was investors’ desire for a safe haven. Japan’s core Consumer Price Index rose 1.0% in February from a year ago, within expectations and a bit faster than in January (0.9%). That was the fastest increase since April 2015. Yet it … “Yen Firm on Risk Aversion, Pays Little Attention to Accelerating CPI”
Swiss Franc Loses Gains Caused by Trade War Fears
The Swiss franc rose intraday during the current trading session on fears of trade wars, particularly between the United States and China, but has lost its gains by now. With the USA announcing tariffs on China’s imports, fears grew that tensions between the world’s two biggest economies may escalate. Trade wars are not good for economy, therefore such fears drove investors towards safer assets, like the Swissie … “Swiss Franc Loses Gains Caused by Trade War Fears”
US Dollar Recovers After Sell-Off Caused by Fed Announcement
Today, the US dollar was recovering after yesterday’s sell-off caused by the policy announcement from the Federal Reserve. Initially, the greenback extended its decline during the current trading session but managed to reverse movement and is now trading above the opening level against almost all most-traded currencies, with the exception of the Japanese yen. As was expected, the Fed announced an interest rate hike by a quarter point to target the range of 1.5%-1.75% on Wednesday. … “US Dollar Recovers After Sell-Off Caused by Fed Announcement”
Pound Spikes Higher on BoE Rate Decision, Declines on Brexit Worries
The British pound today declined against the US dollar after the Bank of England left its monetary policy intact including the bank rate and the asset purchase program. The pound initially spiked higher following the BoE announcement, but quickly headed lower as investor sentiment towards the pound shifted on Brexit worries. The GBP/USD currency pair lost over 140 points to decline from a high of 1.4220 to trade at a low of 1.4075 at the time of writing. … “Pound Spikes Higher on BoE Rate Decision, Declines on Brexit Worries”
AUD Doesn’t Join Rally vs. USD, Dragged Down by Employment Data
The Australian dollar was the only major currency that did not rise against the US dollar today. The reason for that was underwhelming employment data in Australia. The Australian Bureau of Statistics reported that employment grew by 17,500 jobs in February from January, seasonally adjusted, failing to meet market expectations of a 19,800 increase. What is more, the previous month’s increase was revised from 16,000 to 12,500. And on top of that, the unemployment … “AUD Doesn’t Join Rally vs. USD, Dragged Down by Employment Data”
NZ Dollar Mixed, Pays Little Heed to RBNZ Policy Announcement
The New Zealand dollar was mixed today, rising against some currencies and falling versus others. The kiwi paid little attention to the policy announcement from the Reserve Bank of New Zealand, trading sideways following the decision. The RBNZ left its main interest rate at 1.75%, as was widely expected. The central bank made a pessimistic prediction about inflation in the policy statement: CPI inflation is expected to weaken further in the near term … “NZ Dollar Mixed, Pays Little Heed to RBNZ Policy Announcement”