The BOC left rates unchanged but made significant hawkish changes to the statement. The USD/CAD is falling sharply but still trades in an uptrend channel. The Bank of Canada left the interest rate unchanged at 1.25% as widely expected. However, they made significant changes. The biggest market-movers are in the words they omitted rather than added. … “BOC sends the C$ higher and a rate hike is now expected in July”
Month: May 2018
Canadian Dollar Rallies Higher on BoC Interest Rate Decision
The Canadian dollar today rallied against its US counterpart driving the USD/CAD currency pair to new lows after the Bank of Canada announced its interest rate decision. The loonie’s rally was further boosted by disappointing releases from the US docket such as the weak quarterly GDP data. The USD/CAD currency pair today crashed from a high of 1.3039 to a low of 1.2839 losing about 200 points after the BoC statement. The currency … “Canadian Dollar Rallies Higher on BoC Interest Rate Decision”
Euro Rallies Higher on Upbeat German Retail Sales Data
The euro today rallied higher against the US dollar following the release of upbeat German retail sales data in the early European session. However, the euro was still weighed down by the political uncertainty in Italy and the high Italian 2-year bond yields, which rose above 2.5%. The EUR/USD currency pair rallied from a low of 1.1518 to a high of 1.1620 following the upbeat German data. The currency pair began rallying higher in the late Asian … “Euro Rallies Higher on Upbeat German Retail Sales Data”
Swiss Franc Tries to Hold Ground, Weighed by Poor Macroeconomic Data
The Swiss franc was trying to hold its ground today and managed to do so against some of its rivals. It was made complicated by lackluster domestic macroeconomic data and the improving market sentiment. The KOF Economic Barometer fell from 103.3 in April (negatively revised from 105.3) to exactly 100.0 in May instead of rising to 104.6 as analysts had promised. That was the lowest reading since December 2015. The report commented … “Swiss Franc Tries to Hold Ground, Weighed by Poor Macroeconomic Data”
Yen Weakens Despite Solid Macroeconomic Data
The Japanese yen was relatively soft today despite solid macroeconomic reports released in Japan over the trading session. The reason for the currency’s unimpressive performance was the improving market sentiment. Japan’s retail sales rose 1.6% in April from a year ago, beating the median forecast of a 0.9% increase and the 1.0% growth registered in March. The Cabinet Office consumer confidence was at 43.8 in May, up from 43.6 in April and in line with market … “Yen Weakens Despite Solid Macroeconomic Data”
EUR/USD Trades at 10-Month Lows on Italian Political Crisis
The EUR/USD currency pair today dropped to new 10-month lows following political turmoil in Italy where a new election is likely to happen as early as July. Investors dumped the euro as Italian bond yields rose to new highs, which increased the yield spread between the German and Italian 2-year bonds. The EUR/USD currency pair today dropped from a high of 1.1639 to a fresh 2018 low of 1.1510 and was on a downtrend at the time of writing. The political … “EUR/USD Trades at 10-Month Lows on Italian Political Crisis”
Swiss Franc Firm on Risk Aversion & Economic Data
The Swiss franc was rather firm today. Risk aversion and decent domestic macroeconomic data helped the currency to carve out gains versus its major rivals. According to the report from the Federal Statistics Office, Switzerland’s trade balance widened to CHF 2.80 billion in April from the revised CHF 2.25 billion in March. The actual reading was far better than the forecast value of CHF 2.23 billion. As for the future reports, the KOF … “Swiss Franc Firm on Risk Aversion & Economic Data”
Japanese Yen Remains Strong As European Political Turmoil Persists
The Japanese yen was among the strongest currencies today as the ongoing political crisis in Europe continued to bolster the currency. Domestic macroeconomic data was decent enough to provide further support to the yen. Japan’s Statistics Bureau reported that the unemployment rate stayed at 2.5% in April, unchanged from March. Experts were expecting such reading. Now, traders wait for tomorrow’s release of retail sales and consumer confidence. USD/JPY fell from 109.40 … “Japanese Yen Remains Strong As European Political Turmoil Persists”
9 questions and answers about a potential Italian exit of the euro-zone
Italy’s political crisis triggered the worst sell-off of bonds since the height of the crisis and a sharp fall in the EUR/USD. Worries about Italexit, Italeave, or an Italian exit from the euro-zone have risen sharply. In a series of 9 questions and answers, we attempt to explain the crisis and what may happen next. … “9 questions and answers about a potential Italian exit of the euro-zone”
Japanese Yen Firms as Optimistic Market Sentiment Sours
The Japanese yen started the trading week soft amid the seemingly improving market sentiment, but now the currency is trading above the opening level against its major peers. Traders woke up with a positive mood today due to the news that the summit between US and North Korean leaders may yet happen. On top of that, markets welcomed what seemed to be sort of a defeat of anti-euro forces in Italy. Yet … “Japanese Yen Firms as Optimistic Market Sentiment Sours”