The British pound today rallied slightly against the US dollar following the release of upbeat UK public sector finances report early in the European session. The GBP/USD currency pair was on track to reverse the massive decline that occurred during the last 5 trading sessions where the pair lost over 450 points. The GBP/USD currency pair today gained over 65 points to rally from a daily low of 1.3917 to trade at a high … “Pound Rallies Higher Boosted by Improved Public Sector Finances”
Month: April 2018
New Zealand Dollar Weakest Major Currency During Tuesday Trading
The New Zealand dollar was the weakest major currency today, falling for the sixth straight trading session versus the US dollar and for eighth versus the euro and the extremely weak Japanese yen (which was the second weakest). There was no apparent reason for such a sell-off. Some market analysts speculated that it happened due to diminishing prospects for an interest rate hike from the Reserve Bank of New Zealand in the foreseeable future. Currently, … “New Zealand Dollar Weakest Major Currency During Tuesday Trading”
Australian Dollar Bounces After Release of CPI Reports
The Australian dollar fell intraday during the current trading session but bounced after the release of inflation reports even though the data was not particularly supportive. The Australian Bureau of Statistics reported that the Consumer Price Index rose 0.4% in the March quarter of 2018 from the previous three months, slower than in the December quarter of 2017 (0.6%) and slightly below the median forecast (0.5%). The trimmed mean CPI reported by the Reserve Bank … “Australian Dollar Bounces After Release of CPI Reports”
All’s Fair In A Trade War—China’s Payback Could Hurt Markets Even More
The real problem with a possible trade war between China and the United States is that nobody knows what it would look like. For years, the successive US and Chinese leaders have left that hot potato well alone knowing the potential pain it could bring. However, Donald Trump is not a typical US president. There … “All’s Fair In A Trade War—China’s Payback Could Hurt Markets Even More”
Euro Declines on Mixed Eurozone Markit Flash PMI Releases
The euro today declined against the US dollar despite the release of mostly positive PMI data by Markit Economics from across the Eurozone. The single currency’s decline was largely fueled by the resurgent demand for the greenback as trade tensions between China and the USA calmed down. The EUR/USD currency pair lost over 70 points to decline from a high of 1.2289 to trade at a low of 1.2213 at the time of writing. The currency pair’s decline could have been … “Euro Declines on Mixed Eurozone Markit Flash PMI Releases”
Japanese Yen Soft Despite Positive Manufacturing Report
The Japanese yen fell against the US dollar today despite a positive report about Japan’s manufacturing released by Markit during the trading session. The yen was also soft against other currencies, though managed to regain ground versus the euro. The Nikkei Flash Japan Manufacturing Purchasing Managers’ Index ticked up from 53.1 in March to 53.3 in April, matching the consensus forecast. Yet that did not prevent the Japanese currency … “Japanese Yen Soft Despite Positive Manufacturing Report”
Indonesian Rupiah Weakens on Fed Interest Rate Hike Bets
The Indonesian rupiah fell along with most other Asian currencies against the US dollar today amid bets on an interest rate hike from the Federal Reserve in the near future. Prospects for an interest rate hike drove the dollar up, weakening other currencies in the meantime. Currently, CME FedWatch shows basically a 100% chance of a hike in June. That means less cheap money, making it less appealing for investors to risk buying … “Indonesian Rupiah Weakens on Fed Interest Rate Hike Bets”
US Dollar Waits for GDP & Other Economic Reports
The US dollar gained on all its most-traded rivals last week, and traders wait to see if the currency will be able to continue its bullish run in the coming week. Analysts expected that the greenback will be mainly driven by macroeconomic fundamentals, though politics may also affect the US currency. The most anticipated report is the first (advance) estimate of US gross domestic product in the first quarter of 2018. Economists … “US Dollar Waits for GDP & Other Economic Reports”
GBP & CAD Fall on Poor Data, Interest Rate Outlook
The Great Britain pound fell during the past trading week on poor macroeconomic data and concerns that the Bank of England will postpone the planned interest rate hike. The Canadian dollar had the similar issues. Weak inflation and disappointing retail sales led to concerns that the BoE will be reluctant to proceed with monetary policy normalization. Indeed, BoE Governor Mark Carney acknowledged that macroeconomic data was mixed recently. … “GBP & CAD Fall on Poor Data, Interest Rate Outlook”
Swiss Franc Falls Below 1.20 Against Euro
The Swiss franc fell below the historically important level of 1.20 versus the euro as the risk appetite drove investors away from safe currencies. Still, Swiss National Bank Chairman Thomas Jordan saw no reason to abandon the extremely loose monetary policy. The franc traded below the 1.20 level defended by the SNB during its short-lived currency peg to the euro, which it has unexpectedly abandoned in January 2015. Yet Jordan … “Swiss Franc Falls Below 1.20 Against Euro”