The euro rallied today but trimmed its gains against some rivals, including the Japanese yen and the Great Britain pound. The currency kept gains versus the US dollar and the Swiss franc, though. Some market analysts attributed the rally to the pause in the rise of US Treasury yields, though it looks like by now Treasuries have resumed movement to new multi-year highs. Others explained the euro’s strength by the narrowing spread in the Italian-German bond … “Euro Rallies as Italian-German Yield Spread Narrows”
Month: October 2018
Yen Down as Traders Feel No Need for Safe Haven, Positive Data Doesn’t Help
The Japanese yen was weak across the board today as markets calmed down and the sentiment stabilized, giving traders no incentive to buy safer currencies. Positive macroeconomic data did not help the currency. Cabinet Office reported that core machinery orders rose 6.8% in August from the previous month. That is instead of falling by 3.9% as analysts had predicted. The orders jumped as much as 11% in July. But as it often … “Yen Down as Traders Feel No Need for Safe Haven, Positive Data Doesn’t Help”
Aussie Unable to Hold onto Gains Caused by Improving Consumer Sentiment
Positive macroeconomic data helped the Australian dollar to rise overnight but the currency has trimmed its gains by now, losing them outright against some of its major peers, including the US dollar and the euro. The Westpac-Melbourne Institute Index of Consumer Sentiment rose 1% in October from the previous month. The index fell 3% in September. The report commented on the result: It is encouraging that these negatives seem to have, at least for the time … “Aussie Unable to Hold onto Gains Caused by Improving Consumer Sentiment”
US inflation needs to be really bad to stop the USD
US Core Inflation is expected to recover after a blip in August. Fed expectations for a hike in December are set to strengthen. Barring a second consecutive disappointment, the USD will likely remain bid. The US publishes its Consumer Price Index report for September on Thursday, October 11th, at 12:30 GMT. The Fed has two mandates: employment … “US inflation needs to be really bad to stop the USD”
Canadian Dollar Bounces, Following Other Riskier Currencies
The Canadian dollar behaved similarly to some other currencies, including the Australian dollar and the Great Britain pound, falling initially but bouncing later today. The most likely explanation for the choppy movement were changes in the traders’ sentiment. While initially risk aversion prevailed on the market, later speculators felt less need for a safe haven. The Canadian dollar had also own factors for determining its behavior. Among positive ones was the rally … “Canadian Dollar Bounces, Following Other Riskier Currencies”
Japanese Yen Trims Gains Caused by Risk Aversion
The Japanese yen gained intraday on risk aversion but has trimmed its gains by now. Currently, the yen trades above the opening level against the US dollar, flat versus the euro, and below the opening against the Great Britain pound. The clash between the European Union and Italy over the Italian budget continued to spoil the traders’ mood. Adding to the negative sentiment on the market was the downgrade of the global growth by the International Monetary Fund. Maurice Obstfeld, … “Japanese Yen Trims Gains Caused by Risk Aversion”
Euro Drops on High US Yields and Italy Budget Plans, Later Rebounds
The euro today declined significantly against the US dollar as the US 10-year Treasury yields hit a 7-year high and investors reacted to the prospect of lower global economic growth. The tensions between Italy and the European Union regarding the latter’s budget plans also dragged the pair lower. The EUR/USD currency pair today dropped from a high … “Euro Drops on High US Yields and Italy Budget Plans, Later Rebounds”
Chinese Yuan Rebounds After State Stimulus Injection
The Chinese yuan is rebounding against a basket of currencies on Tuesday after the federal government injected tens of billions of dollars into the national economy. Despite bearish forecasts and tumbling Asian stocks, the currency has strengthened, but it is still near a multi-year low. Beijing reduced the amount of cash that financial institutions are … “Chinese Yuan Rebounds After State Stimulus Injection”
Pound Drops on Brexit Fears & Negative Data, Bounces Later
The Great Britain pound behaved similarly to the Australian dollar and several other currencies, falling intraday but rising later. Negative macroeconomic data was likely responsible for the initial drop, though the Brexit fears also likely played a role. British Retail Consortium reported that like-for-like retail sales fell 0.2% in September from a year ago. The decline followed the increase at the same 0.2% in the previous month. Helen Dickinson OBE, Chief … “Pound Drops on Brexit Fears & Negative Data, Bounces Later”
Australian Dollar Bounces Despite Risk Aversion
The Australian dollar was down intraday but bounced later, rising above the opening level against some of its rivals. The business confidence reported by the National Australia Bank rose from +5 to +6 in September, staying around the long-run average. The NAB business conditions edged up from +14 to +15, stabilizing after the decline earlier this year. Alan Oster, NAB Group Chief Economist, explained the increase: The rise in the month … “Australian Dollar Bounces Despite Risk Aversion”