The US dollar ended the week rather soft, gaining on safe currencies, but falling against other peers, commodity currencies in particular. Risk aversion abated on markets as the trade war between the United States and China was not escalating. In fact, China increased imports from the USA last month. That led to lower demand for currencies considered to be a safe haven, allowing the dollar to gain on the Japanese yen and the Swiss franc. The minutes … “US Dollar Ends Week Stronger vs. Safe Currencies, Weaker vs. Commodity Ones”
Month: April 2018
EUR/USD Declines Despite Positive Trade Balance Data, Later Rallies Briefly
The EUR/USD currency pair today dropped significantly despite the release of positive Eurozone trade balance data in the early European session. The currency pair reversed its decline after the release of US consumer sentiment data in the early American session, but could not rally back to its session high. The EUR/USD currency pair traded in a tight range between a high of 1.2346 and a low of 1.2306 for most of today’s session. The currency pair’s initial … “EUR/USD Declines Despite Positive Trade Balance Data, Later Rallies Briefly”
New Zealand Manufacturing PMI Slips, NZ Dollar Pays Little Attention
New Zealand manufacturing PMI fell last month, as was shown by the report released by Business NZ today, though that had limited impact on the performance of the New Zealand dollar. The currency rallied intraday but has retreated by now. The BusinessNZ Performance of Manufacturing Index fell from 53.3 in February to 52.2 in March. It was the second consecutive decline in 2018. The report was not entirely negative, though, as BusinessNZ’s executive director … “New Zealand Manufacturing PMI Slips, NZ Dollar Pays Little Attention”
Australian Dollar Gains as China’s Imports from USA Increase
The Australian dollar rallied today after the release of China’s trade data. The currency gained even as the nation’s central bank signaled that it is not going to raise interest rates in the near future. China’s trade balance showed a deficit of $4.98 billion in March, which was a total surprise to economists who were counting on a $27.1 billion surplus. The interesting part of the report was that, despite all the trade war rhetoric, … “Australian Dollar Gains as China’s Imports from USA Increase”
With all that support, no wonder USD/JPY is rising
The Technical Confluences Indicator shows that the USD/JPY has lots of support at around ¥106.80. This area is the convergence of the Fibonacci 38.2% one-week, the Bolinger Band 15m Lower (Stdv. 2.2), the SMA5-4h, the Bolinger Band 1h-Middle, the SMA200-1h, the SMA50-4h, and the Fibonacci 23.6% one-day. On the other hand, there are only weaker and sparser technical … “With all that support, no wonder USD/JPY is rising”
Euro Declines Against US Dollar on ECB Minutes and US Jobless Data
The euro today dropped significantly against the US dollar after the European Central Bank released the minutes of its latest monetary policy meeting. The single currency’s decline started in the Asian session due to the imminent risk of an escalation in Syria involving the USA and Russia. The EUR/USD currency pair today lost over 79 points to decline from a high of 1.2379 to trade at a low of 1.2299 at the time of writing. The currency pair’s decline started during the Asian … “Euro Declines Against US Dollar on ECB Minutes and US Jobless Data”
Japanese Yen Drops Despite Kuroda Expressing Optimism
The Japanese yen dropped against its major rivals today despite optimistic comments from Bank of Japan Governor Haruhiko Kuroda. The likely reason for that was the improving market sentiment. Kuroda showed optimism about inflation in today’s speech, saying: With the output gap improving and medium- to long-term inflation expectations seen heightening, we expect inflation to accelerate as a trend and head toward 2 percent. He also said, though, … “Japanese Yen Drops Despite Kuroda Expressing Optimism”
Australian Dollar Firm After Weak Data
The Australian dollar fell against its US counterpart slightly but gained on other most-traded peers today even though domestic macroeconomic data was not particularly helpful to the currency. The Melbourne Institute inflation expectations fell by 0.1 percentage point to 3.6% in April. The number of home loans fell by 0.2% in February from January. That is compared to the predicted drop by 0.3% and the previous month’s decline of 1.0%. AUD/USD traded at 0.7749 … “Australian Dollar Firm After Weak Data”
Dollar Mixed After FOMC Policy Minutes
The US dollar was mixed following today’s release of policy minutes by the Federal Open Market Committee. The currency fell against some rivals, while gained on others (primarily the riskier ones linked to the commodity market). Markets considered the minutes of the March policy meeting, during which the Federal Reserve raised interest rates, to be largely hawkish. With that said, Fed members discussed ramifications of potential trade wars: A number of participants … “Dollar Mixed After FOMC Policy Minutes”
Euro Rallies Against US Dollar on Draghi Speech and US CPI Data
The euro today rallied slightly higher against the US dollar following the ECB President, Mario Draghi‘s speech at an event in Frankfurt. The euro kept rising after the release of the US Consumer Price Index data despite the core inflation print being in line with expectations. The EUR/USD currency pair today gained over 40 points to rally from a low of 1.2352 to trade at a high of 1.2396 at the time of writing. The currency pair was on an uptrend … “Euro Rallies Against US Dollar on Draghi Speech and US CPI Data”