The ECB’s message is finely balanced between risks and confidence. EUR/USD buys this relative confidence, at least for now. The door is open to a dovish shift in March. The European Central Bank left its policy and messages unchanged. The interest rate may still rise in September despite growing signs of a slowdown. President Mario Draghi balanced … “EUR/USD enjoys Draghi’s balance, but could fall in March”
Month: January 2019
USD: ‘A Peak Is One Thing, Depreciation Is Another’ – NAB
The US Dollar has been under pressure recently. Has it peaked? Where will it go next? Here is their view, courtesy of eFXdata: NAB Research discusses the USD outlook and maintains a structural bearish bias through 2019. “When we think about the USD’s medium-term trajectory, our view is conditioned by both valuation and structural considerations. In … “USD: ‘A Peak Is One Thing, Depreciation Is Another’ – NAB”
Chinese Yuan Rebounds From Two-Week Low As Economic Worries Fade
The Chinese yuan is rebounding from a two-week low as economic worries dissipate. The yuan, which was one of the weakest Asian currencies last year, is gaining on reports that the federal government does not want to see it weaken too much should it affect trade negotiations. There has been talk that the worldâs two … “Chinese Yuan Rebounds From Two-Week Low As Economic Worries Fade”
Canadian Dollar Declines Against US Dollar on Weak Retail Sales Data
The Canadian dollar today dropped to new daily lows against its US counterpart following the release of weak Canadian retail sales data. The loonie had made gains against the greenback earlier today as evidenced by the USD/CAD currency pair’s decline before retracing all of its gains after the release. The USD/CAD currency pair today dropped … “Canadian Dollar Declines Against US Dollar on Weak Retail Sales Data”
Fed Preview: Patience is priced in, but Powell’s tone could be decisive for the dollar
The Fed made a dovish shift in recent statements. Now it’s time to make it official. But how will the US Dollar react? A lot depends on Powell’s tone at the press conference. Fed decision: Wednesday: decision at 19:00, press conference at 19:30. In the final decision for 2018, the Federal Reserve raised interest rates … “Fed Preview: Patience is priced in, but Powell’s tone could be decisive for the dollar”
Yen Soft After BoJ Monetary Policy Meeting, Economic Forecast
The Japanese yen was soft today after the Bank of Japan performed a monetary policy meeting and revised its economic projections. The losses were not particularly big, though. As was widely expected, the BoJ left its monetary policy unchanged, with the main interest rate staying at -0.1%. As for economic projections, the central bank cut its growth forecast for the fiscal year of 2018 to 0.9%-1.0% from the October’s estimate of 1.3%-1.5%. The inflation forecast … “Yen Soft After BoJ Monetary Policy Meeting, Economic Forecast”
NZ Dollar Rallies After Consumer Inflation Surprises Positively
The New Zealand dollar climbed by the end of the Tuesday’s trading session and continued to rally during the early Wednesday’s session. The rally was a result of the better-than-expected inflation data. Before the report, the currency was moving either sideways or down versus its major peers. Statistics New Zealand reported that the Consumer Price Index rose 0.1% in the December quarter of 2018 from the previous three months. Analysts had predicted ahead of the report no … “NZ Dollar Rallies After Consumer Inflation Surprises Positively”
Canadian Dollar Falls on Poor Macroeconomic Data, Market Sentiment
The Canadian dollar fell against its most-traded peers today after the release of negative macroeconomic data and as the market sentiment soured on worsening global growth projections. Statistics Canada reported that manufacturing sales fell 1.4% in November, demonstrating the second consecutive monthly drop. Analysts had predicted a smaller decline by 0.8%. The data was not entirely bad, though, as the main reason for the decline was the drop in sales of petroleum and coal products. … “Canadian Dollar Falls on Poor Macroeconomic Data, Market Sentiment”
US Dollar Firms to Two-Week High on Strong Data, Thawed US-China Tensions
The US dollar is firming to its best level in two weeks on better-than-expected industrial figures and improved US-China trade relations. Greenback investors are shrugging off warnings of sluggish global economic growth and weak Chinese economic data. Heading into 2019, traders anticipated a bearish trend, but the currency has performed modestly well against a basket of currencies. According to the Federal Reserve, US manufacturing output climbed 1.1% in December, … “US Dollar Firms to Two-Week High on Strong Data, Thawed US-China Tensions”
Improving German Economic Sentiment Doesn’t Prevent Euro from Falling
The euro fell against most of its major rivals today even after the German economic sentiment improved unexpectedly. The losses were small for the most part, though. The ZEW Indicator of Economic Sentiment for Germany improved from -17.5 to -15.0 in January. ZEW President Professor Achim Wambach expressed his surprise with the improvement considering all the negative factors: It is remarkable that the ZEW Economic Sentiment for Germany has not … “Improving German Economic Sentiment Doesn’t Prevent Euro from Falling”