The UK Parliament will vote on the Brexit deal on December 11th. Uncertainty is high, but the government is unlikely to win. There are three scenarios with three different reactions for the Pound. Nearly two and half years after the British people shocked the establishment by voting to leave the European Union, an agreement has … “GBP/USD: 3 scenarios for the Brexit vote in Parliament”
Month: December 2018
Aussie Drops After GDP Misses Expectations
The Australian dollar tumbled against its most-traded counterparts today as nation’s economic growth was disappointing. The general negative market sentiment was also unfavorable to the currency. The Australian Bureau of Statistics reported that gross domestic product rose 0.3% in the September quarter from the previous three months on a seasonally adjusted basis. The actual increase was two times slower than 0.6% predicted by analysts. Furthermore, it was much slower … “Aussie Drops After GDP Misses Expectations”
CAD: BoC Sets For An Obvious Pause With A Slightly Hawkish Tone On Wed – CIBC
The Bank of Canada is set to leave rates unchanged. But will they hint of fresh rate hikes? Here is their view, courtesy of eFXdata: CIBC Research discusses its expectations for tomorrow’s BoC December policy meeting. That sets up the Bank of Canada for an obvious pause in rates this week, but the more interesting … “CAD: BoC Sets For An Obvious Pause With A Slightly Hawkish Tone On Wed – CIBC”
Swiss Franc Gains Despite Slowing CPI
The Swiss franc was behaving similar to the Japanese yen today, rising against its rivals due to waning risk appetite. Negative domestic macroeconomic data was unable to prevent the rally. The Federal Statistical Office reported that the Swiss Consumer Price Index fell 0.3% in November from the previous month after increasing 0.2% in October. Analysts had expected a smaller decrease by 0.1%. The report commented on the result: The 0.3% drop compared … “Swiss Franc Gains Despite Slowing CPI”
Chinese Yuan Keeps Up the Momentum on US Trade Truce
The Chinese yuan is continuing to post significant gains in the aftermath of the US-China trade truce. With trade hostilities suspended for 90 days, the yuan is looking to pare its steep losses, and some analysts believe the currency could become a global heavyweight in the years to come. Now if only the economy would … “Chinese Yuan Keeps Up the Momentum on US Trade Truce”
Euro Rallies Against US Dollar Amid Falling US Bond Yields, Later Declines
The euro today rallied higher against the weaker US dollar boosted by bearish investor sentiment towards the world’s reserve currency. The EUR/USD currency pair rallied higher as markets reacted to falling US Treasury yields amid doubts about the trade ceasefire between the US and China. The EUR/USD currency pair today rallied from an opening low … “Euro Rallies Against US Dollar Amid Falling US Bond Yields, Later Declines”
Yen Surges as Risk Appetite Caused by US-China Truce Wanes
The Japanese yen jumped against its most-traded rivals today as optimism caused by the truce in the trade war between the United States and China waned, and market participants started to question whether the agreement will hold. Markets rejoiced yesterday due to announcement that the USA and China agreed to not implement additional tariffs on each other for a 90-day period, opening their markets in the meantime. Yet today the positive sentiment caused by the news weakened, sending … “Yen Surges as Risk Appetite Caused by US-China Truce Wanes”
Aussie Mixed After RBA, Current Account
The Australian dollar was mixed today after the nation’s central bank kept interest rates unchanged, while the current account deficit narrowed. The Reserve Bank of Australia kept its benchmark cash rate at 1.5% today, surprising no one. The central bank was fairly optimistic about economic growth, both domestic and global, though mentioned dangers of trade wars to global trade. The RBA stated: Further progress in reducing unemployment … “Aussie Mixed After RBA, Current Account”
Australian GDP growth may slow, but AUD/USD remains bullish
Australia is expected to report a slowdown in economic growth in Q3. The Australian Dollar continues riding on hopes for improved global trade. Australia publishes its Gross Domestic Product for the third quarter of 2018 on Wednesday, December 5th, at 00:30 GMT. The Australian economy enjoyed a robust growth rate of 0.9% QoQ and 3.4% … “Australian GDP growth may slow, but AUD/USD remains bullish”
EUR/USD: Three reasons to prefer the downside – Barclays
EUR/USD is looking for a new direction in the all too familiar 1.13 handle. Where next? Here is their view, courtesy of eFXdata: Barclays Research discusses EUR/USD tactical outlook and flags a scope for a downside risk within the pair’s recent broad range. “A rebound in the USD will likely add downward pressure on EURUSD this … “EUR/USD: Three reasons to prefer the downside – Barclays”