The Australian dollar rallied intraday during the current trading session but failed to maintain gains and is trading near the opening level now. Market analysts argued that the reason for the gains were the rally of Chinese stocks. The Shanghai Stock Exchange Composite Index climbed 0.92% today, rising above the psychologically important level of 2,800. The Aussie rallied on the news initially but retreated afterwards, likely because traders were cautious ahead … “Australian Dollar Fails to Keep Gains Ahead of Fed Decision”
Month: September 2018
GBP/USD: UK GDP may surprise in the yearly version
The final read for Britain’s Q2 GDP is expected to confirm the early numbers. Surprises are not uncommon in the final read, especially for the annual figure. Fear of a no-deal Brexit and the takeover of Brexit headlines came afterward. The final read of UK Gross Domestic Product is due on Friday, September 28th, at … “GBP/USD: UK GDP may surprise in the yearly version”
Chinese Yuan Strengthens on Bullish Forecast, Capped by Trade Dispute
The Chinese yuan is strengthening on Tuesday after a Wall Street giant forecast that the worldâs second largest economy will soon become the biggest economy in the world by 2030. The currencyâs gains were capped on the intensifying trade dispute between Beijing and Washington, as well as a report that China may scrap a popular home pre-sale system. According to a study by economists at HSBC Holdings Plc, China is set to overtake the US as the worldâs largest … “Chinese Yuan Strengthens on Bullish Forecast, Capped by Trade Dispute”
Yen Weak After BoJ Minutes, Positive Data Doesn’t Help
The Japanese yen was generally weak today following the release of monetary policy minutes. Positive macroeconomic data did not help the currency. The Bank of Japan released today minutes of its July policy meeting. The notes mentioned uncertainties associated with the trade war between the US and China. One BoJ Board member stated: If the Chinese yuan depreciated further, due mainly to concerns over the possible negative impact on the Chinese … “Yen Weak After BoJ Minutes, Positive Data Doesn’t Help”
Euro Surges After German Business Climate, Draghi’s Comments
The euro edged up today after the better-than-expected German business climate print and rose further sharply following comments from European Central Bank President Mario Draghi. As of now, the currency has lost its gains versus the US dollar, trimmed them against the Japanese yen, but kept them against the Swiss franc. The ifo Business Climate Index ticked down to 103.7 in September from 103.9 (seasonally-adjusted) in August. The drop … “Euro Surges After German Business Climate, Draghi’s Comments”
US Dollar Extends Losing Skid Ahead of Federal Reserve Policy Meeting
The US dollar erased its early gains and extended its two-week losing skid on Monday. As investors braced for the Federal Reserveâs two-day policy meeting and read reports that China canceled trade talks with the US, the greenback dipped against a basket of currencies. On Wednesday, the central bank will conclude its two-day Federal Open Market Committee (FOMC) meeting. The market widely anticipates that Fed Chair Jerome Powell and the Board … “US Dollar Extends Losing Skid Ahead of Federal Reserve Policy Meeting”
Britain’s Pound Recovers on Brexit Hopes
The Great Britain pound recovered a bit today following the big slump on Friday. The main driver for the currency was Brexit news. On Friday, the sterling demonstrated a sharp drop after the trade negotiations between the United Kingdom and the European Union hit an impasse. Yet the currency recovered today after Brexit Secretary Dominic Raab voiced confidence that a trade deal will be reached: We keep on negotiating in good faith, we try … “Britain’s Pound Recovers on Brexit Hopes”
Aussie Suffers with Other Commodity Currencies from US-China Trade War
The Australian dollar recovered a bit after opening sharply lower today. While trading was somewhat slower than usual as markets in China and Japan were closed for a holiday, the new developments in the US-China trade war dragged commodity currencies down. The planned US tariffs on $200 billion of Chinese goods took effect this midnight. In response, China not only promised to implement its own levies on US imports, but also … “Aussie Suffers with Other Commodity Currencies from US-China Trade War”
Fed preview: To go tight or not to tight? The dollar asks the question
The Federal Reserve will raise rates on September 26th and will likely hint of another hike in December. The bigger question is if the Fed moves to a tight policy: interest rates exceeding inflation. The event is set to take over the full week and move all markets for quite some time. September and December … “Fed preview: To go tight or not to tight? The dollar asks the question”
US Dollar Ends Week Soft as US-China Trade War Becomes Non-Event
The US dollar ended the week mostly soft despite escalation of the US-China trade conflict. Markets largely brushed off the news, and traders showed more interest in riskier higher-beta currencies instead of safer ones. The United States implemented a 10% tariff on $200 billion of Chinese goods, and China promised to retaliate in a similar manner. Yet markets showed muted reaction to the news. In fact, the currencies of Australia and New Zealand, countries most dependent on the well-being … “US Dollar Ends Week Soft as US-China Trade War Becomes Non-Event”