The New Zealand dollar traded lower today amid mild risk aversion on the Forex market. Worse-than-expected domestic macroeconomic data was not helping either. Statistics New Zealand reported that the trade balance demonstrated a deficit of NZ$914 million in January after logging a surplus of NZ$12 million in December. Economists had predicted a smaller gap of NZ$300 million. Both imports and exports increased compared to the same period in the previous year, but … “NZ Dollar Falls on Risk Aversion, Trade Deficit”
Month: February 2019
US Dollar Mixed on Housing Data, Fed Testimony
The US dollar is mixed on Tuesday as housing data and congressional testimony from the central bank head weigh on the greenback. The buckâs short-term performance will rely heavily on the wave of data coming through the pipe this week â at home and abroad. According to the US Census Bureau, construction on new houses tumbled 11% in December to an annual rate of 1.08 million, a two-year low. The market had penciled in housing starts to reach 1.23 million … “US Dollar Mixed on Housing Data, Fed Testimony”
Euro Whipsaws Against US Dollar Buffeted by Different Triggers
The Euro today traded in a directionless manner against the US dollar swinging between 20-day highs and daily lows in reaction to different triggers. The ER/USD currency pair today rose to new highs following the release of weak US housing data before falling and rising again. The EUR/USD currency pair today whipsawed between a high … “Euro Whipsaws Against US Dollar Buffeted by Different Triggers”
3 ways Powell’s testimony could go for currencies
Fed Chair Jerome Powell will testify in Capitol Hill after pledging patience on rates. His message can go three ways for sentiment. Here are the three main scenarios and potential market reactions. 1) Not rocking the boat The Fed is now “patient” on interest rates, but we are not sure if they still intend to … “3 ways Powell’s testimony could go for currencies”
Canadian Dollar Follows Crude Oil in Decline
While most riskier commodity-geared currencies were rallying today, the Canadian dollar declined. With absence of other apparent reasons, market analysts pointed at the drop of crude oil prices as the most likely reason for the currency’s decline. Crude oil fell about 3% on Monday. Market analysts speculated that the reason for the huge slump was the tweet from US President Donald Trump, which urged the Organization of Petroleum Exporting Countries to prevent … “Canadian Dollar Follows Crude Oil in Decline”
Pound Rallies on Hopes That Brexit Will Be Delayed, Later Drops
The British pound today rallied slightly against the US dollar amid investor hopes that the UK government would postpone Brexit to allow time for further negotiations. The pound later fell in the early American session as news headlines indicated that the British Prime Minister Theresa May was keen on leaving the EU within the current … “Pound Rallies on Hopes That Brexit Will Be Delayed, Later Drops”
US Dollar Rivals Benefit From Bearish Data
The US dollar is weakening against a basket of currencies to start the trading week. The dollarâs main rivals are benefiting from bearish economic data, as well as renewed risk appetite on reports of âsubstantial progressâ in US-China trade negotiations. In the background is a survey of economist that finds many expect a recession soon. According to the US Census Bureau, domestic wholesale inventories rose 1.1% in December. The ratio of inventories to sales climbed to a 30-month high … “US Dollar Rivals Benefit From Bearish Data”
Impact of the trade war on the financial markets
The trade war and U.S. politics offer multiple trading opportunities, but there are 3 or 4 instruments that will directly concern investors who trade. The most directly affected instrument is probably stocks. Stocks tend to move down upon news that trade tariffs are to be introduced or that talks are not going well. Trade tariffs … “Impact of the trade war on the financial markets”
NZ Dollar Gains on Risk Appetite, Robust Retail Sales
The New Zealand dollar gained today, joining its Australian counterpart, boosted by positive fundamentals, both domestic and overseas. On top of positive developments in the Sino-US trading negotiations, which were boosting other riskier currencies, the kiwi had positive domestic macroeconomic as additional supporting factor. Statistics New Zealand reported that retail sales increased 1.7% in the December quarter from the previous three months after rising 0.3% in the September quarter. … “NZ Dollar Gains on Risk Appetite, Robust Retail Sales”
Australian Dollar Gains as USA Delays Tariffs on China
The Australian dollar got a lift today from positive developments in the Sino-US trade talks. US President Donald Trump announced a delay in implementations of additional tariffs on Chinese imports, which were scheduled to kick off starting March 1, citing “substantial progress” in the trade talks between the United States and China. Trump also confirmed that he is planning to meet with Chinese President Xi Jinping in March. The news lifted … “Australian Dollar Gains as USA Delays Tariffs on China”