The RBA is expected to leave its interest rate unchanged in its last decision for 2018. Several factors make the decision a significant one. The Reserve Bank of Australia announces its rate decision on Tuesday, December 4th, at 3:30 GMT. The RBA is broadly expected to leave the Cash Rate unchanged at 1.75%, the rate … “AUD/USD: 3 things to watch in the RBA decision”
Month: December 2018
Pound Declines Ahead of Important Brexit Vote
The Great Britain pound declined against other most-traded currencies today as Brexit worries outweighed positive macroeconomic data released during the European trading session. The UK Parliament will vote on December 11 for the trade deal between the United Kingdom and the European Union. The vast majority of specialists agree that the deal will likely be rejected. Such outcome can result in a range of negative repercussions, from resigning of Prime Minister Theresa … “Pound Declines Ahead of Important Brexit Vote”
Positive Market Sentiment Does Not Prevent Rally of Swiss Franc
The Swiss franc gained today even though the market sentiment was favorable to riskier currencies, not the safer ones. Domestic macroeconomic data was positive but did not seem to play a part in the currency’s rally. The Swiss manufacturing Purchasing Managers’ Index rose from 57.4 to 57.7 in November. Analysts had predicted a decline to 56.3. Retail sales climbed 0.8% in October from the previous year, while the median forecast had … “Positive Market Sentiment Does Not Prevent Rally of Swiss Franc”
Japanese Yen Gains on Majors Despite Positive Market Sentiment
While the Japanese yen was soft against commodity currencies today, it managed to gain on many other most-traded peers. That was surprising considering the risk-on market sentiment, which made safe currencies less attractive to traders. The Ministry of Finance Japan reported that capital spending rose 4.5% in the third quarter of this year from the same period a year ago, missing the average forecast of an 8.6% increase. The Nikkei Japan … “Japanese Yen Gains on Majors Despite Positive Market Sentiment”
Euro Rallies on Risk-On Sentiment, Later Declines as Markets Cool Off
The euro today rallied higher against the US dollar during the Asian session mainly due to the risk-on sentiment following the US-China trade truce. The euro later declined in the early European session as market sentiment became neutral and the EUR/USD currency pair moved into negative territory. The EUR/USD currency pair today rallied to a high … “Euro Rallies on Risk-On Sentiment, Later Declines as Markets Cool Off”
Canadian Dollar Surges on Trade Truce, Higher Energy Prices
The Canadian dollar is surging against its American counterpart to start the trading week, supported by rallying energy prices and the temporary pause in trade hostilities between the worldâs two largest economies. The loonie, which has retreated nearly 5% this year, is looking to finish the year strong. Over the weekend, President Donald Trump and Chinese President Xi Jinping held talks in Argentina during the G20 summit to discuss the year-long trade … “Canadian Dollar Surges on Trade Truce, Higher Energy Prices”
Aussie Emerges as Strongest on Forex Market, Ignores Domestic Data
The Australian dollar opened sharply higher on Monday thanks to the news about a ceasefire in the trade war between the United States and China. The news overshadowed Australia’s domestic macroeconomic reports, basically all of which were poor. The Australian Industry Group Australian Performance of Manufacturing Index slumped from 58.3 in October to 51.3 in November, signaling that manufacturing growth slowed significantly. In fact, it was the lowest reading since October 2017. Building … “Aussie Emerges as Strongest on Forex Market, Ignores Domestic Data”
NZ Dollar Surges on News About US-China Trade War Truce
The New Zealand dollar surged along with other commodity currencies today on the news about a temporary truce in the trade war between the United States and China. The kiwi was unable to beat its Australian counterpart, which emerged as the strongest on the Forex market. The US and China leaders agreed for a 90-days truce. The countries will not implement additional tariffs against each other and will open their markets during the period. While many … “NZ Dollar Surges on News About US-China Trade War Truce”
US Dollar Ends Week Firm on Interest Rate Outlook
The US dollar slumped during the week after Federal Reserve Chairman Jerome Powell made a U-turn, saying that interest rates close to neutral levels. The currency recovered later following the Fed policy minutes. Commodity currencies were strongest during the week, with the exception of the Canadian dollar. US stocks climbed, while the greenback tumbled, after Powell stated that borrowing costs are “just below” the neutral level, contradicting … “US Dollar Ends Week Firm on Interest Rate Outlook”