The Swiss franc gained against most of its major rivals today, boosted by risk aversion and the better-than-expected GDP print. The Swiss Federal Statistics Office reported that gross domestic product grew 0.7% in the second quarter of this year following the 1.0% growth in the first quarter (revised, 0.6% before the revision). Experts had predicted a slower rate of growth — 0.5%. The report stated that the expansion was “at an above-average rate for the fifth quarter … “Swiss Franc Rises on Robust GDP Growth”
Month: September 2018
Euro Rallies on Weak US ADP Employment Data and Positive Sentiment
The euro today rallied higher against the US dollar following the release of disappointing employment data from the USA in the early American session. The EUR/USD currency pair was trading sideways in the mid-European session following a brief decline during the Asian session largely driven by market sentiment. The EUR/USD currency pair today dropped from … “Euro Rallies on Weak US ADP Employment Data and Positive Sentiment”
Australian Dollar Soft Despite Better-Than-Expected Trade Balance
The Australian dollar was mixed-to-lower today despite domestic macroeconomic data that showed a better-than-expected trade balance. The Australian Bureau of Statistics reported that the trade surplus decreased to A$1.55 billion in July from A$1.94 billion in June. Despite the decrease, the actual reading was better than the median forecast of A$1.46 billion. Yet the Aussie did not react to the report, and analysts explained that by risk aversion on the Forex market. AUD/USD rallied … “Australian Dollar Soft Despite Better-Than-Expected Trade Balance”
Brexit: 3 lessons for GBP/USD traders after the recent jump
The UK and Germany agreed to abandon some vital Brexit demands, easing the path for a deal. The move provides three lessons for GBP/USD traders moving forward. The UK and Germany agreed to focus on a smooth transition of the UK outside the European Union and leave decisions for a future relationship for the future. … “Brexit: 3 lessons for GBP/USD traders after the recent jump”
Chinese Yuan Appreciates As Investors Bullish on Currency, Economy
The Chinese yuan is strengthening against its US counterpart midweek, buoyed by reports that investors appear to be bullish on the currency, the national economy, and the domestic bond market. The yuan also gained momentum on a recent analysis by a Wall Street giant that the currency could gain a greater global reserve market share. Hedge funds and money managers say China is becoming an attractive destination for foreign investors because the government has … “Chinese Yuan Appreciates As Investors Bullish on Currency, Economy”
Euro Declines on Negative Market Sentiment, Rallies on Weak US Dollar
The euro today initially fell drastically in the Asian session as concerns regarding the risk of emerging markets contagion triggered a selloff in riskier currencies including the euro. However, the single currency mounted a recovery from the early European session as market fears dissipated and the US dollar retreated from previous highs. The EUR/USD currency … “Euro Declines on Negative Market Sentiment, Rallies on Weak US Dollar”
Aussie Struggles to Keep Gains Despite Better-Than-Expected GDP
The Australian dollar was volatile today, struggling to preserve its gains. While it was trading above the opening level against most major rivals, the Aussie struggled to move higher despite a very supportive factor in the form of the faster-than-expected economic growth. The Australian Bureau of Statistics reported that gross domestic product rose 0.9% in the June quarter from the previous three months. Year-on-year, GDP climbed 3.4%. That was a faster … “Aussie Struggles to Keep Gains Despite Better-Than-Expected GDP”
NZ Dollar Stands Firm in Face of Overwhelmingly Negative Data
The New Zealand dollar was relatively firm today. That is surprising considering that macroeconomic data was overwhelmingly negative to the currency. Released during the American trading session, the GlobalDairyTrade Price Index dropped 0.7%. The ANZ Commodity Price Index, released during the Asian session, showed a drop of 1.1% in August from the previous month. While it was a slower decline than 3.3% registered in the preceding month, it was … “NZ Dollar Stands Firm in Face of Overwhelmingly Negative Data”
US Dollar Rallies on Trade War Fears, ISM Manufacturing Data
The US dollar rallied against all of its major rivals today. Market analysts explained the rally by risk aversion caused by trade war fears, though many also mentioned the unexpectedly positive manufacturing report. Investors were nervous today, anticipating that the planned tariffs on $200 billion worth of Chinese goods may take effect as soon as Thursday. The lack of progress in NAFTA talks between the United States and Canada also made … “US Dollar Rallies on Trade War Fears, ISM Manufacturing Data”
Rand Drops After South African Economy Enters Recession
The South African rand dropped today, touching the lowest level since June 2016 against the US dollar, after the nation’s economy entered recession unexpectedly. South Africa’s gross domestic product fell 0.7% in the June quarter on a seasonally adjusted annualized basis. Market participants had expected an increase by 0.6%. GDP contracted 2.6% in the previous quarter. The second consecutive quarterly decline means that the economy has officially entered recession. … “Rand Drops After South African Economy Enters Recession”