In early 2017, President Trump made a comment that caught many by surprise. The ‘dollar was too strong’, he said. Consequently, this meant that the U.S government would no longer be in favor of the Clinton-era two-decade strong dollar policy. According to David Woo, Head of Global Rates and Foreign Exchange research at Bank of … “The Long term USD forecast”
Month: May 2018
Euro Drops to New YTD Lows on Disappointing Eurozone PMIs
The euro today hit new 2018 lows against the US dollar following the release of disappointing advance PMI data from across the Eurozone. Some of the PMIs released by IHS Markit included the Markit/BME Germany Manufacturing PMI, which missed expectations by a significant margin. The EUR/USD currency pair today lost over 88 points to decline from a high of 1.1788 to a 6-month low of 1.1699. The currency pair was on a downtrend from the Asian session, … “Euro Drops to New YTD Lows on Disappointing Eurozone PMIs”
Turkish Lira Crashes to Record Low
The Turkish lira crashed today, sinking 5% to the record low before recovering a bit. The currency still trades far below the opening level. Analysts attributed the crash to concerns about the direction of monetary policy under President Tayyip Erdogan. While some specialists speculated that Turkey’s central bank may raise interest rates to prevent depreciation of the currency, others said that the bank is not independent enough to do so … “Turkish Lira Crashes to Record Low”
Yen Jumps Sharply on Worsening Sentiment, Ignores Economic Data
Macroeconomic data released in Japan today was rather disappointing. Yet that did not prevent a sharp jump of the Japanese yen on the back of the worsening market sentiment. Previously, markets felt encouragement from signs that the United States and China want to avoid trade wars. But such optimism evaporated after US President Donald Trump contradicted his own economic officials, saying that there is no deal … “Yen Jumps Sharply on Worsening Sentiment, Ignores Economic Data”
ECB Meeting Minutes could reveal how worried they are about the “moderation”
The ECB Meeting Minutes will shed some light on the Bank’s views on the economy. Hints about future monetary policy are unlikely but could surprise. The common currency is poorly-positioned ahead of the event. The European Central Bank publishes the Monetary Policy Accounts on Thursday, May 24th, at 11:30 GMT. The document provides more detail … “ECB Meeting Minutes could reveal how worried they are about the “moderation””
Loonie Unable to Maintain Rally Despite Supportive Fundamentals
The Canadian dollar fell today after rallying intraday. That was surprising, considering that fundamentals looked extremely supportive for the currency. Statistics Canada reported that wholesale sales climbed 1.1% in March from February, beating the average forecast of 0.8%. Price for crude oil, Canada’s major export, jumped above the $80 mark. Yet all those factors were unable to help the loonie to keep gains, and the currency fell below … “Loonie Unable to Maintain Rally Despite Supportive Fundamentals”
US Dollar Flat, Waits for Fed Minutes
The US dollar traded almost flat against most of its major peers amid profit-taking and in anticipation of the upcoming policy minutes from the Federal Reserve. Analysts pointed out that the greenback has rallied as much as 7% since February, prompting traders to look for more reasons to buy the currency. Yet fundamentally, the environment remained positive for the currency. US Treasury yields pulled back from the 7-year highs during the Tuesday’s trading session. … “US Dollar Flat, Waits for Fed Minutes”
GBP/USD Rallies Then Declines on Testimonies by BoE Members
The GBP/USD currency pair today retreated from its overnight rally after encountering resistance just before the crucial 1.3500 psychological level. The currency pair was on an uptrend from the early European session before reversing in the mid-European session following testimonies by Bank of England policymakers before the UK Parliament’s Treasury Select Committee. The GBP/USD currency pair today declined from a high of 1.3492 to a low of 1.3412 losing about 80 points. … “GBP/USD Rallies Then Declines on Testimonies by BoE Members”
Japanese Yen Bounces After Falling on CPI & Risk Appetite
The Japanese yen fell intraday, dragged down by underwhelming domestic macroeconomic data and the positive market sentiment. Yet the currency has bounced by now as the impact of risk appetite seemed to wane. The Bank of Japan reported that the Consumer Price Index rose 0.5% in April from a year ago. That was a slower pace of growth than 0.6% predicted by analysts and 0.7% registered in the previous month. Bank of Japan Governor Haruhiko Kuroda was … “Japanese Yen Bounces After Falling on CPI & Risk Appetite”
3 things to look out for in the Fed Meeting Minutes
The FOMC Meeting Minutes from the May decision will shed some light on the Fed’s thinking. The usage of the word “symmetric” in regards to the Fed’s inflation target will come under specific scrutiny and two other points are important to watch. The US Dollar is poised to remain bid unless the Fed sends a … “3 things to look out for in the Fed Meeting Minutes”