As was expected UK Prime Minister Theresa May suffered a defeat in the crucial Brexit vote. Yet apparently, traders used “sell the rumor, buy the fact” approach for the Great Britain pound as the currency jumped on the news. As was widely expected, the Parliament rejected May’s “Withdrawal Agreement” approved by the European Union leaders. The defeat was resounding, with 432 MPs voting against the agreement and just 202 voting in favor of the deal. The Prime Minister … “Pound Jumps After May Suffers Resounding Defeat in Brexit Vote”
Month: January 2019
Euro Declines on 5-Year Low German GDP Data and Dovish Draghi
The euro today declined significantly against the US dollar from the early European session after attempting to rally higher during the Asian session. The single currency’s decline was initially triggered by the US dollar’s slight rebound before the weak German GDP data caused it to crash to new weekly lows. The EUR/USD currency pair today dropped from a high of 1.1490 to a low of 1.1391 following Draghi’s speech. The currency pair’s initial … “Euro Declines on 5-Year Low German GDP Data and Dovish Draghi”
US Dollar Weakens As Wholesale Inflation Falls
The US dollar is trading lower against its major currency rivals on Tuesday after new US government data found that wholesale inflation declined at the end of 2018, recording its biggest drop in five months. The greenback is also tumbling on a variety of comments from the experts warning about the government shutdownâs impact on the US economy. In December, the producer price index (PPI) slipped 0.2%, beating median estimates of 0.1%, … “US Dollar Weakens As Wholesale Inflation Falls”
Economic Data in China & New Zealand Poor, NZ Dollar Declines
The New Zealand dollar fell today due to disappointing macroeconomic reports in China. New Zealand’s own economic data released overnight was not particularly good as well, though it improved compared to the previous reporting periods. Statistics New Zealand reported that food prices fell 0.2% in December after declining 0.6% in November. That is without adjusting for seasonal variations. Seasonally adjusted, food prices actually increased … “Economic Data in China & New Zealand Poor, NZ Dollar Declines”
Euro Mixed After Macroeconomic Data Disappoints
The euro was mixed today following the release of lackluster macroeconomic data in the eurozone. The currency gained on the US dollar, which remained extremely soft, but was flat versus the Great Britain pound and fell against safe currencies like the Japanese yen and the Swiss franc. German wholesale prices dropped 1.2% in December after rising 0.2% in November. Eurozone industrial production declined 1.7% in November after increasing 0.1% in October. Analysts … “Euro Mixed After Macroeconomic Data Disappoints”
Chinese Yuan Sideways on Worse-Than-Expected Trade Data
The Chinese yuan is trading sideways to start the trading week as new worse-than-expected trade data is showing bad signs for the worldâs second-largest economy. Last monthâs trade woes are leaving investors with the belief that these numbers will only worsen in the coming months. According to Chinaâs General Administration of Customs, total exports declined 1.4% to $221.25 billion and total imports fell 10% to $164.19 billion in December. Compared … “Chinese Yuan Sideways on Worse-Than-Expected Trade Data”
Japanese Yen Rallies on Poor Data from China, Trims Gains Later
The Japanese yen rallied against its most-traded rivals today on bad macroeconomic releases in China and uncertainty about the situation in Great Britain. By now, the currency has trimmed its gains, losing them against some of the peers outright. China’s trade balance surplus widened to $57.06 billion in December from $53.85 billion in November. While the data looked good on surface, actually both imports and exports declined, it is just that … “Japanese Yen Rallies on Poor Data from China, Trims Gains Later”
Forecast: Great Britain Pound Waits for Brexit Vote
The Great Britain pound will likely experience significant volatility this week due to the upcoming Brexit vote. Because of the importance of the event, macroeconomic data should have a limited impact on the currency, being overshadowed by the vote. UK Prime Minister Theresa May managed to reach a trade agreement with the European Union. Yet the vast majority of experts believe that the Parliament will likely reject the deal during the voting on Tuesday. It is … “Forecast: Great Britain Pound Waits for Brexit Vote”
US Dollar Ends Week Soft amid No Rate Hikes Outlook
The US dollar fell against most other currencies over the week as traders were becoming more and more convinced that the Federal Reserve may perform no interest rate hikes at all this year. The major hit for the greenback came from the monetary policy minutes of the Federal Reserve that talked about patience in determining timing of the next interest rate hike. While comments of Fed Chairman Jerome Powell about reduction … “US Dollar Ends Week Soft amid No Rate Hikes Outlook”
Dollar Mixed After Headline Inflation Slows
The US dollar was mixed following the release of an inflation report. Market analysts were still bearish on the currency, saying that there are not many factors that will support the greenback over the long term. The Bureau of Labor Statistics reported that the Consumer Price Index fell 0.1% in December, month-on-month, after showing no change in November. Year-on-year, consumer inflation slowed to 1.9% from 2.2% in the previous month. Core … “Dollar Mixed After Headline Inflation Slows”