The Canadian dollar fell against major currencies today, joining other commodity currencies in decline. The main theme on Monday was the escalating threat of trade wars between world’s major economies. Commodity currencies are usually sensitive to swings in market sentiment, and this was certainly the case lately. With signs of more and more protectionist measures from the United States and similar responses from their trading partners, risk aversion was … “Canadian Dollar Soft Under Pressure from Trade War Fears”
Month: June 2018
Turkish Lira Rallies After Erdogan’v Victory in Presidential Election
The Turkish lira rallied today after victory of Recep Tayyip Erdogan in the presidential election. Erdogan’s victory in the Turkish presidential election reduced political uncertainty, making the lira a bit more appealing to investors. Market analysts argued, though, that there is a high chance that the rally will be short-lived. They pointed out that Erdogan’s presidency was the major reason for the 21% depreciation of the currency this year in the first place. … “Turkish Lira Rallies After Erdogan’v Victory in Presidential Election”
Chinese Yuan at Lowest Since December
The Chinese yuan fell to the lowest level in six months today amid worsening trade tensions between the United States and China, which led to risk aversion on the Forex market. Washington announced restrictions of Chinese investment in US in addition to the previously announced tariffs on Chinese goods — a move that will likely prompt a retaliation from the word’s second biggest economy. In the wake of worsening trade tensions, the People’s Bank of China reduced the reserve requirement … “Chinese Yuan at Lowest Since December”
Euro Trades Sideways on Mixed German IFO Survey Data
The euro today rallied slightly higher after the release of the German IFO business climate index for June, which matched expectations. The euro opened today’s session on a downtrend even as the selling pressure on the single currency increased due to the ongoing trade tensions between the US, China and the European Union. The EUR/USD currency pair today traded in a sideways range marked by a high of 1.1669 and a low of 1.1629, but was looking to break higher at the time of writing. … “Euro Trades Sideways on Mixed German IFO Survey Data”
Canadian Dollar Ends Week Soft, Hurt by Trade War Threat
The Canadian dollar ended the week soft, mainly due to risk aversion caused by the threat of trade wars. Underwhelming domestic macroeconomic data hurt the Canadian currency for a short while, but it recovered quickly. It looked like trade dispute between the United States and its allies, including the European Union, as well as China was intensifying. US protectionism is bad news for Canada, which heavily depends on trade with its … “Canadian Dollar Ends Week Soft, Hurt by Trade War Threat”
Canadian Dollar Declines on Weak Retail Sales and CPI Data
The Canadian dollar today dropped drastically against the US dollar following the release of the latest Canadian Consumer Price Index data, which missed expectations by a huge margin. The loonie’s massive drop drove the USD/CAD currency pair to new 2018 highs as it was further accelerated by the weak Canadian retail sales data also released today. The USD/CAD currency pair today rallied from a low of 1.3259 to a high of 1.3381 gaining over … “Canadian Dollar Declines on Weak Retail Sales and CPI Data”
Yen in Red, Ignoring Positive Data
The Japanese yen was in red against basically all other most-traded currencies today despite relatively positive domestic macroeconomic data. Some market analysts explained the weakness by rising global bond yields. Japan’s core Consumer Price Index rose 0.7% in May, year-on-year, the same as in April and within expectations. While it was nice to see inflation to stabilize after two months of slowdown, the consumer price growth was still … “Yen in Red, Ignoring Positive Data”
Euro Rallies Higher on Greece Bailout Deal and Upbeat Eurozone PMIs
The euro today rallied higher against the US dollar after finance ministers from across the Eurozone reached an agreement regarding Greece’s final bailout. The euro’s rally was further complemented by the release of positive PMI data from across the Eurozone by IHS Markit and in-line French GDP data. The EUR/USD currency pair today rallied from a low of 1.1599 to a high of 1.1674 in the early European session, but was on a downtrend at the time of writing. … “Euro Rallies Higher on Greece Bailout Deal and Upbeat Eurozone PMIs”
Canadian Dollar Soft, Recovers vs. US Dollar
The Canadian dollar fell against other most-traded currencies today, though managed to recover versus the US dollar by now. The currency was under pressure from a range of negative factors, including falling prices for crude oil, trade tensions with the United States, and underwhelming domestic macroeconomic data. Automatic Data Processing reported that Canada’s employment increased by 2,905 jobs in May — a far smaller number than 15,100 registered in April, … “Canadian Dollar Soft, Recovers vs. US Dollar”
Swiss Franc Firm, Undisturbed by Dovish SNB
The Swiss franc gained on most other major currencies, with the exception of the Great Britain pound, which got a boost from the relatively hawkish stance of the Bank of England. The outlook expressed by Switzerland’s own central bank was far less optimistic, but that did not prevent the Swissie from rising. The Swiss National Bank kept interest rates unchanged at today’s policy meeting, as was widely expected. The interest on sight deposits … “Swiss Franc Firm, Undisturbed by Dovish SNB”