The Turkish lira jumped sharply today after the Turkish central bank performed an emergency interest rate hike following data that showed accelerating inflation. The Central Bank of the Republic of Turkey raised its policy rate from 16.5% to 17.75% at today’s emergency meeting. The announcement came following the inflation report few day before that showed a surge of annual inflation to 12.15% in May from 10.85% the month before. Indeed, the central … “Turkish Lira Surges After Interest Rate Hike”
Month: June 2018
Japanese Yen Down on Disappointing Data, ECB Speculations
The Japanese yen posted losses against its major rivals during the Wednesday’s trading session, dragged down by poor domestic macroeconomic data and the positive market sentiment. Japan’s Ministry of Health, Labour and Welfare reported that average cash earnings rose 0.8% in April from a year ago. That was a noticeably slower rate of growth than 1.4% predicted by analysts. Looking forward, traders wait for Friday’s GDP report. Economists … “Japanese Yen Down on Disappointing Data, ECB Speculations”
Markets cannot ignore the trade war for too long
The Trump Administration is fighting trade wars on three fronts. Stock markets continue rising, and currency movements move into risk. The atmosphere may change quickly, and it may turn ugly. Things seemed to calm down on the trade front when US Secretary of the Treasury Steven Mnuchin said that China and the US decided to … “Markets cannot ignore the trade war for too long”
Accelerating Inflation Unable to Boost Swiss Franc
The Swiss franc was extremely weak today despite the better-than-expected inflation data released in Switzerland over the current trading session. The Swiss Federal Statistics Office reported that the Consumer Price Index rose 0.4% in May from the previous month, accelerating from April’s 0.2% and beating the median forecast of 0.3%. Year-on-year, the index was up 1.0%. Some analysts said that the market sentiment was positive overnight, and that may … “Accelerating Inflation Unable to Boost Swiss Franc”
Euro Rallies Higher As ECB Considers Ending Its QE Program
The euro today rallied higher against the US dollar after it was confirmed that the European Central Bank was considering ending its massive quantitative easing program. The news confirmed a report that was circulating on Tuesday about the possibility of such action by the ECB. The EUR/USD currency pair today rallied by over 65 points from a low of 1.1712 to a high of 1.1780 after the ECB news broke. The currency pair’s rally … “Euro Rallies Higher As ECB Considers Ending Its QE Program”
Australian Dollar Rallies After Positive GDP Print
The Australian dollar gained on most of its major peers today after a report showed that Australia’s economy was growing faster than expected last quarter. The Australian Bureau of Statistics reported that gross domestic product grew 1.0% in the March quarter of 2018 from the previous three months, slightly above the analysts’ consensus estimate of 0.9%. Furthermore, the previous quarter’s increase got a small positive revision from 0.4% to 0.5%. … “Australian Dollar Rallies After Positive GDP Print”
EUR/USD: The Bottom Still Ahead; Proposal Of New Italian Govt Key – Danske
EUR/USD recovered some 200 pips from the lows as the Italian government was formed. But it may not be over just yet. Here is their view, courtesy of eFXdata: Danske Research discusses EUR/USD outlook and maintains a tactical bearish bias, expecting the pair to retest its last week’s low around 1.1510. “We still think the bottom … “EUR/USD: The Bottom Still Ahead; Proposal Of New Italian Govt Key – Danske”
Canadian Dollar Drops on Trade War Fears, Falling Crude Oil
The Canadian dollar fell against its major rivals on Tuesday amid concerns about trade wars between the United States and their allies, Canada being one of them. The drop of crude oil added to the currency’s woes. The Canadian economy heavily depends on trade with the USA, therefore it is very important for Canada to preserve the North American Free Trade Agreement. Yet it looks like the NAFTA negotiations between the US, … “Canadian Dollar Drops on Trade War Fears, Falling Crude Oil”
US Dollar Soft as Trade War Fears Creep Up
The US dollar was rather soft due to concerns that potential trade wars between the United States and their allies can damage the US economy. Positive domestic macroeconomic data was unable to bolster the greenback. Mexico announced that it is going to put tariffs on US products in retaliation to the announcement of US import duties on metals. That should complicate NAFTA talks between the USA, Mexico, and Canada. Additionally, the Group … “US Dollar Soft as Trade War Fears Creep Up”
EUR/USD Rallies Higher on Mixed Eurozone Data, Later Declines
The EUR/USD currency pair today rallied higher in the early European session following the release of mixed PMI data from across the Eurozone by IHS Markit. The currency pair’s initial rally was further boosted by the weaker US dollar as tracked by the US Dollar Index whose recovery had stalled in the early European session. The EUR/USD pair today rallied briefly from a low of 1.1682 to a high of 1.1717, but later headed lower as the US … “EUR/USD Rallies Higher on Mixed Eurozone Data, Later Declines”