The US dollar was strong during the past trading week thanks to risk aversion caused by the crisis in Turkey, though that same factor made other safe currencies compete with the greenback, and the Japanese yen emerged as a winner. The Turkish lira remained in a free fall as US sanctions against Turkey and hyperinflation made the currency unattractive to investors. While Turkey is not a world’s major economy, exposure of European banks to Turkish assets … “US Dollar Ends Week Strong on Back of Turkish Crisis”
Month: August 2018
USD: CPI Report Shows Underlying Price Pressures Continue To Build – CIBC
US Core Inflation came out at 2.4% y/y, better than had been expected. Will it push the Fed to raise interest rates at a quicker pace? Here is their view, courtesy of eFXdata: CIBC Research discusses its reaction to today’s US CPI print for the month of July. “Headline inflation appears to have plateaued, but a … “USD: CPI Report Shows Underlying Price Pressures Continue To Build – CIBC”
Turkish Lira Rattles Global Financial Markets As Currency Crashes 20%
The Turkish lira cratered more than 20% on Friday after the US government announced it was doubling its tariffs on the countryâs steel and aluminum exports. The collapse in the lira sent shockwaves throughout global financial markets, prompting the European Central Bank (ECB) to warn major European banks about being exposed to the Turkish economy. On Friday, President Donald Trump tweeted that he authorized an increase on US tariffs on Turkey’s steel … “Turkish Lira Rattles Global Financial Markets As Currency Crashes 20%”
Canadian Dollar Mixed Despite Amazing Employment Report
Canada’s employment data released today was much better than forecasts, but the performance of the Canadian dollar was largely driven by the market sentiment. As a result, the loonie gained against the extremely weak euro, but fell versus safe currencies, such as the US dollar and the Japanese yen. Statistics Canada reported that Canadian employers added 54,100 jobs in July. That was a far bigger figure than 17,500 predicted by forecasters … “Canadian Dollar Mixed Despite Amazing Employment Report”
US Dollar Rallies on Stable Inflation, Turkish Fears
The US dollar rallied against its major rivals today, though not against safe ones, like the Japanese yen and the Swiss franc. The reasons for the rally were the stable inflation figures and risk aversion on markets. The US Consumer Price Index rose 0.2% in July, in line with expectations and a bit faster than in June (0.1%). The core components of the index were up 0.2% as well, same as in the previous month and also matching expectations. … “US Dollar Rallies on Stable Inflation, Turkish Fears”
Sterling Pound Drops on UK GDP Data and US Inflation Report
The Sterling pound today was on a downtrend from the Asian session, but recovered slightly after the release of positive UK GDP data. The GBP/USD currency pair’s decline was further accelerated by the release of upbeat CPI data from the US docket. The GBP/USD currency pair today dropped from a high of 1.2836 in the Asian session to a low of 1.2756 in the early American session. The currency pair headed lower in the Asian session due to the risk-off market … “Sterling Pound Drops on UK GDP Data and US Inflation Report”
Japanese Yen Gains on Risk Aversion, Positive Data
The Japanese yen gained today amid risk aversion caused by international tensions around the world. Domestic macroeconomic data, while usually having a limited impact on the currency, was also supportive. Japan’s gross domestic product rose 0.5% in the second quarter of this year according to the preliminary estimate. That is compared to the average forecast of a 0.3% increase and the 0.2% drop registered in the first quarter. The Producer Price Index rose 3.1% in July, … “Japanese Yen Gains on Risk Aversion, Positive Data”
Australian Dollar Falls After RBA Policy Statement
The Australian dollar fell today as the rally of the US dollar and the sell-off of the euro hurt riskier currencies. The passive stance of Australia’s central bank was not helping the currency. The Reserve Bank of Australia released its quarterly Statement on Monetary Policy today. Unlike its New Zealand counterpart, the Australian central bank did not see a material chance of an interest rate cut, anticipating higher rates in the future: Higher interest rates are … “Australian Dollar Falls After RBA Policy Statement”
Canadian Dollar Mixed Ahead of GDP
The Canadian dollar was mixed on Thursday, rising against the euro but falling versus the US dollar and staying almost flat against the Japanese yen. Domestic macroeconomic data was also mixed, making no incentive for the currency to go one way or the other. Canada Mortgage and Housing Corporation reported that housing starts were at the seasonally adjusted annual rate of 206,314 in July, down from 246,200 in June. Analysts had expected … “Canadian Dollar Mixed Ahead of GDP”
Chinese Yuan Retreats From One-Week High As PBOC Discourages âHerd Behavior’
The Chinese yuan is reversing its gains this week after touching a one-week high on Wednesday. The decline came as the central bank warned some of the nationâs largest financial institutions about potential âherd behaviorâ and momentum-chasing moves in the foreign exchange market. On Thursday, according to Bloomberg, the Peopleâs Bank of China (PBOC) urged the big banks to prevent any âherd behaviorâ that might form in the wake of the yuan slumping to a 13-month low. The central … “Chinese Yuan Retreats From One-Week High As PBOC Discourages âHerd Behavior’”