The US dollar was very strong on Monday as traders continued to bet on another interest rate hike from the Federal Reserve in the near future. Macroeconomic data released over Monday in the United States was disappointing for the most part, but that did not deter the greenback from rising. What caught the traders’ attention was the fact that annual core PCE inflation was very close to the Federal Reserve’s target level … “Dollar Continues to Get Support from Interest Rate Hike Expectations”
Month: April 2018
Euro Weak After Bunch of Soft Data from Eurozone
The euro was weak today following macroeconomic releases during the Monday’s trading session. Not all of the reports were bad, but markets paid more attention to the negative part of the data. The Italian Consumer Price Index rose 0.1% in April on a monthly basis, missing the average forecast of a 0.2% increase slightly. German retail sales dropped by 0.6% in March from the previous month — a result that was totally opposite to market expectations … “Euro Weak After Bunch of Soft Data from Eurozone”
The dollar should enjoy the ISM Manufacturing PMI and the Prices Paid component
The ISM Manufacturing PMI is the first hint towards the NFP, but the Prices component may steal the show. The US Dollar is well-positioned to take advantage of the outcome. The Institute for Supply Management’s purchasing managers’ index for the manufacturing sector is published on Wednesday, May 1st, at 14:00. The first day of the … “The dollar should enjoy the ISM Manufacturing PMI and the Prices Paid component”
Australian Dollar Soft After Mixed Australian & Chinese Economic Reports
The Australian dollar was falling since the beginning of today’s trading session and accelerated its decline after the release of mixed macroeconomic data from Australia and Australia’s biggest trading partner — China. The China Federation of Logistics and Purchasing released its Purchasing Managers’ Indices for April today. The manufacturing PMI slipped a little from 51.5 to 51.4, while the non-manufacturing PMI rose a bit from 54.6 to 54.8. Both indicators were close to market … “Australian Dollar Soft After Mixed Australian & Chinese Economic Reports”
Surging US Treasury Yields Help Dollar End Week Strong
The US dollar was very strong during the past trading week, for the most part thanks to surging US Treasury yields. Rising yields for US Treasuries boosted the dollar at the start of the week. The currency remained relatively strong even as yields retreated by the end of the week, though it posted losses on Friday despite better-than-expected US gross domestic product. The euro was volatile after the European Central Bank policy meeting. The currency fell … “Surging US Treasury Yields Help Dollar End Week Strong”
Pound Plunges as Economic Growth Slows Beyond Expectations
The Great Britain pound took a beating today as the vast majority of macroeconomic reports released over the Friday’s trading session were very disappointing. Markets primarily focused on the slowing economic growth, though other indicators were not impressive either. Britain’s gross domestic product rose just 0.1% in the first quarter of 2018 from the previous three months, slowing from the 0.4% rate of growth demonstrated in the fourth quarter of 2017. Economists … “Pound Plunges as Economic Growth Slows Beyond Expectations”
EUR/USD Declines on Weak Eurozone Releases and Upbeat US GDP, Later Rebounds
The EUR/USD currency pair today fell to new multi-month lows after the release of disappointing French GDP data among other macro releases from the euro block. The pair’s decline was further accelerated by the release of upbeat Q1 GDP data from the USA. The EUR/USD currency pair lost over 60 points to decline from an initial high of 1.2116 to a low of 1.2053, but later rebounded. The currency pair’s decline started in the late … “EUR/USD Declines on Weak Eurozone Releases and Upbeat US GDP, Later Rebounds”
Japanese Yen Rallies Undisturbed by Detrimental Fundamentals
The Japanese yen was little changed against the US dollar but gained on other major rivals today. That was a surprising performance as fundamentals did not look supportive to the currency. The Bank of Japan left interest rates and the size of Japanese government bonds purchases unchanged at today’s meeting, as was widely expected. There was one dissenter who voted for increasing monetary easing. The central bank also released its economic … “Japanese Yen Rallies Undisturbed by Detrimental Fundamentals”
New Zealand Dollar Holds Ground Despite Unexpected Trade Deficit
The New Zealand dollar was little change against some currencies and gained against others today even though the nation’s trade balance demonstrated an unexpected deficit last month. Statistics New Zealand reported that the trade balance turned from a surplus of NZ$172 million in February to a deficit of NZ$86 million in March. That was a total surprise to economists, who were expecting a substantial increase of the surplus to NZ$270 million. It was … “New Zealand Dollar Holds Ground Despite Unexpected Trade Deficit”
EUR/USD Rallies Briefly on ECB Decision and Draghi Speech, Later Declines
The EUR/USD currency pair today rallied briefly after a speech by the European Central Bank President Mario Draghi following the bank’s interest rate decision. The currency pair’s decline was triggered by the resurgence of the US dollar following reports that top US government officials were heading to China for talks on the ongoing US-China trade war. The currency pair initially rallied to 1.2209 after Draghi’s hawkish speech before it dropped massively … “EUR/USD Rallies Briefly on ECB Decision and Draghi Speech, Later Declines”