For as long as just about anyone can remember, the US dollar has been the King of Currencies. American pre-eminence in global economic and political affairs and its unchallenged role as the Leader of the Free World have largely been responsible for the greenback’s standing as the global reserve currency. However, with incremental changes in … “What Makes the Dollar Retain Its Dominance?”
Month: October 2018
Australian Dollar Flat After RBA Minutes, China’s Inflation Data
The Australian dollar was basically flat against most of its major peers following the release of policy minutes by the Reserve Bank of Australia and inflation data in China, Australiaâs biggest trading partner. The RBA released minutes of its October meeting, which did not provide many new insights. The notes were mostly optimistic, stating that the appreciation of the US dollar, while being generally negative to emerging market economies, was helpful … “Australian Dollar Flat After RBA Minutes, China’s Inflation Data”
Sterling Pound Rallies on Positive Brexit News and UK Jobs Data
The Sterling pound today rallied higher after the release of positive UK jobs data especially the unexpected increase in wages in the three months to August. The GBP/USD currency pair’s rally was initially triggered by comments from Germany’s Europe minister who stated that the likelihood of a Brexit deal was high. The GBP/USD currency pair … “Sterling Pound Rallies on Positive Brexit News and UK Jobs Data”
NZ Dollar Rises as Inflation Accelerates Beyond Expectations
The New Zealand dollar gained today after a report released overnight showed that inflation accelerated last quarter more than was expected. Statistics New Zealand reported that the Consumer Price Index rose 0.9% in the September quarter from the previous three months. That is compared to an increase by 0.7% predicted by analysts and the 0.4% gain registered in the prior quarter. Annual inflation was at 1.9%. NZD/USD gained from 0.6547 … “NZ Dollar Rises as Inflation Accelerates Beyond Expectations”
US Dollar Soft After Retail Sales Miss Expectations
The US dollar opened sharply higher against a range of other most-traded currencies today on the back of risk aversion. Currently, though, the greenback is weak due to retail sales missing expectations and geopolitical tensions. The US Census Bureau reported that retail sales rose just 0.1% in September, while analysts had predicted a much bigger increase by 0.7%. Core retail sales, which exclude volatile auto sales, fell 0.1% … “US Dollar Soft After Retail Sales Miss Expectations”
Canadian Dollar Rises on Business Optimism, Future Rate Hikes
The Canadian dollar is rallying to kick off the trading week, buoyed by growing optimism among the business community. The loonie was lifted even more on increasing odds that the central bank will raise interest rates at least one more time before the year is over. On Monday, the Bank of Canada (BOC) released its quarterly business survey that showed private sector optimism hovered around record levels in the third … “Canadian Dollar Rises on Business Optimism, Future Rate Hikes”
Swiss Franc Gains as Safe Currencies Back in Favor
The Swiss franc climbed today, joining the Japanese yen in a rally, as risk aversion returned to markets. That brought safe currencies back in favor of market participants. The Asian stock market crashed today, and European stocks did not perform well too. That was a result of the risk-negative sentiment among investors. There were plenty of reasons for traders to be concerned, including the trade disputes between the United States and China, the clash between … “Swiss Franc Gains as Safe Currencies Back in Favor”
Pound Opens Sharply Lower on Negative Brexit News
The Great Britain pound opened sharply lower today on negative Brexit news. Currently, the sterling is trying to crawl back to the Friday’s close. The backstop of the Irish border remained an unresolved issue between the United Kingdom and the European Union. EU chief Brexit negotiator Michel Barnier twitted yesterday: We met today @DominicRaab and UK negotiating team. Despite intense efforts, some key issues are still open, including … “Pound Opens Sharply Lower on Negative Brexit News”
US Dollar Ends Turbulent Week Soft
The stock market crashed this week and the US dollar followed. While the greenback recovered somewhat by the weekend, the US currency ended the week among losers. US President Donald Trump criticized the Federal Reserve for raising interest rates, saying that there is no inflationary pressure to warrant such actions. Market analysts considered Trump’s comments one of the major reasons for the dollar’s decline. Macroeconomic data seemed to support Trump’s claims … “US Dollar Ends Turbulent Week Soft”
Euro Declines on Flat German Inflation Amid US Dollar Rebound
The euro today dropped from 2-week highs against the US dollar as the greenback rallied higher from the early European session to recoup most of yesterday’s losses. The EUR/USD currency pair rallied slightly after the release of positive German inflation data, but could not sustain its rally due to the resurgent greenback. The EUR/USD currency … “Euro Declines on Flat German Inflation Amid US Dollar Rebound”