The Swiss franc fell versus the Japanese yen and was little changed against the US dollar following the release of unfavorable macroeconomic data. The KOF Economic Barometer fell from 101.7 in July (revised up from 101.1) to 100.3 in August. The report explained the result: The strongest contributions to this negative result come from manufacturing, followed by the indicators from the exporting sector. On the other hand, the indicators related to private consumption give … “Swiss Franc Falls vs. Yen As KOF Business Barometer Declines”
Month: August 2018
NZ Dollar Crashes As Business Confidence Worsens
The New Zealand dollar tumbled today after macroeconomic data showed that the business confidence deteriorated and the number of building consents fell. ANZ Business Confidence Index dropped to -50.3 in August from -44.9 in July. The report commented on the result: Headline business confidence fell a further 5 points in August, but firms’ views of their own activity were steady. Manufacturing is now the least confident sector â likely … “NZ Dollar Crashes As Business Confidence Worsens”
Euro Falls on Mixed German Data Amid Depressed Market Sentiment
The euro today fell against the US dollar following mixed releases from Germany led by the weak import price index data among others. The EUR/USD currency pair gave up yesterday’s gains that were triggered by positive investor sentiment towards the single currency based on hopes for a Brexit deal. The EUR/USD currency pair today dropped … “Euro Falls on Mixed German Data Amid Depressed Market Sentiment”
Time to sell the GBP/USD? 3 reasons to doubt the Barnier rally
The GBP/USD rallied hard on Barnier’s offer for a “special deal” for the UK post-Brexit. There are three reasons why the gains are unjustified. Chief European Union Negotiator Michel Barnier surprised markets on Wednesday. The usually tough official spoke in Berlin, and his tone was optimistic for a change. He said the EU is ready … “Time to sell the GBP/USD? 3 reasons to doubt the Barnier rally”
Will Trump Weaken the Dollar despite the Fed’s Rate Hike?
The dollar is continuing to ease after experiencing a robust rally during the first half of August. After trading sideways for most of the summer, the greenback surged against most major currencies rallying to 1.13 against the Euro but has since rebounded climbing back above the 1.16 handle. Treasury yields appear to have been part … “Will Trump Weaken the Dollar despite the Fed’s Rate Hike?”
Chinese Yuan Weakens Against Greenback, Snaps Three-Day Winning Streak
The Chinese yuanâs recent rally has come to an end, snapping its three-day winning streak on Wednesday. The currency weakened against the American counterpart midweek amid ballooning corporate demand for cheaper US dollars. Can the yuan renew the rally this week ahead of some crucial economic data? According to Reuters, corporate clients went on a dollar-buying binge as state-owned financial institutions were selling greenback reserves. Traders paused because they … “Chinese Yuan Weakens Against Greenback, Snaps Three-Day Winning Streak”
Euro Falls Against Resurgent US Dollar Amid Upbeat US GDP Data
The euro today fell against the US dollar, which was on a recovery path following yesterday’s selloff that was triggered by the risk-on market sentiment. The EUR/USD currency pair headed lower in the early American session following the release of the US Q2 GDP data, which beat consensus estimates. The EUR/USD currency pair today dropped … “Euro Falls Against Resurgent US Dollar Amid Upbeat US GDP Data”
3 scenarios for the upcoming $200 billion US tariffs on China
The US is set to impose massive tariffs on China in the first week of September. The move has significant consequences for the global economy and currencies. Here are three scenarios for the significant escalation and the potential forex reactions. The US imposed tariffs on $50 billion worth of Chinese imports so far. China has … “3 scenarios for the upcoming $200 billion US tariffs on China”
Pound Strengthens as Shop Prices Show End of Deflation
The Great Britain was relatively strong today as data showed that shop prices showed inflation for the first time in more than five years. The Brexit fears were still weighing on the currency. The Shop Price Index reported by British Retail Consortium increased 0.1% in August, year-on-year, after falling 0.3% in July. It was the first increase in more than five years. While the data was supportive to the sterling, market participants … “Pound Strengthens as Shop Prices Show End of Deflation”
Japanese Yen Extends Losses on Wednesday
The Japanese yen was weak during the current trading week. The Wednesday’s session was no different as the currency fell against most major rivals, though managed to gain on the soft euro. The major theme of the week was the successful outcome of the preliminary trade talks between the United States and Mexico. That led to hopes that the similar success can be reached in negotiations with Canada and perhaps even other US trading partners. … “Japanese Yen Extends Losses on Wednesday”