ECB President Lagarde has laid down a gloomy picture of the economy under the second covid wave. She committed to providing additional stimulus measures in the December meeting. EUR/USD is set to remain under pressure and focused on coronavirus statistics. “We are not going to stand still” – the words of Christine Lagarde, President of … “ECB: Gloomy Lagarde lays ground for stimulus, next euro moves depend on covid”
Month: October 2020
US Dollar Gets Direction on Better-Than-Expected GDP, Initial Jobless Claims
The US dollar is looking to extend its gains against several major currency rivals on Thursday after a plethora of data pointed to a strengthening economy for the world’s second-largest market. The greenback, which has come under pressure this month, is benefiting from both safe-haven demand and positive macroeconomic economic developments, including first-time jobless claims and the gross domestic product. According to the Bureau of Economic Analysis (BEA), the US economy expanded … “US Dollar Gets Direction on Better-Than-Expected GDP, Initial Jobless Claims”
US GDP Analysis: No V-shaped recovery despite 33.1% leap, covid looms over markets
The US economy leaped by an annualized rate of 33.1% in the third quarter of 2020. The output is roughly 3% below pre-pandemic levels. Investors are worried about the impact of coronavirus in the fourth quarter. The best quarter in history – following the worst one. Gross Domestic Product jumped by an annualized rate of … “US GDP Analysis: No V-shaped recovery despite 33.1% leap, covid looms over markets”
Bulls Targeting 1.7445 on GBP/CAD?
The Great Britain pound versus the Canadian dollar currency pair seems to be willing to go higher. Will the bears let it do so? Long-term perspective After the double bottom defined by the 1.6750 and 1.6769 lows, respectively, the price started an ascending movement that managed not only to touch the firm level of 1.7567 but also to pierce it. To the bullish disappointment, the pierce ended as being a false one, as the price retraced under … “Bulls Targeting 1.7445 on GBP/CAD?”
Euro Falls Against Dollar as EU Countries Initiate 2nd Lockdown
The euro today fell against the dollar as eurozone countries initiated fresh lockdown measures to curb the rising coronavirus cases within their borders. The EUR/USD currency pair fell driven by safe-haven flows as investors bought the dollar to hedge against the risks posed by the coronavirus pandemic to the global economy. The EUR/USD currency pair today fell from a high of 1.1788 during the Australian market to a low of 1.1717 during the early American session but has … “Euro Falls Against Dollar as EU Countries Initiate 2nd Lockdown”
How three US election outcomes (and a contested result) could rock the dollar
EUR/USD may ride on a blue wave and surge. A victory for Biden with a Republican-controlled Senate could trigger a moderate downfall. Euro/dollar has room to rise if Trump is re-elected. The nightmare scenario is that the results of the elections are contested. The second wave of coronavirus is locking the euro to the downside – … “How three US election outcomes (and a contested result) could rock the dollar”
Canadian Dollar Slides As BoC Leaves Rates Unchanged, Crude Oil Crashes
The Canadian dollar is sliding against its US peer on Wednesday as the Bank of Canada (BoC) left interest rates unchanged during its November policy meeting. The loonie was also falling on plummeting crude oil prices amid escalating COVID-19 cases around the world that traders bet would continue to weigh on global demand. With Canada witnessing a second wave of the highly infectious respiratory illness, will the economic recovery … “Canadian Dollar Slides As BoC Leaves Rates Unchanged, Crude Oil Crashes”
US Dollar & Japanese Yen Climb amid Risk Aversion
Safe-haven currencies, like the US dollar and the Japanese yen, jumped today as risk aversion was ruling markets. The main themes were the rising number of coronavirus cases in Europe and the upcoming presidential election in the United States. According to reports, the French government is considering a month-long nationwide lockdown to curb the rising number of coronavirus cases. French President Emmanuel Macron will address the issue on television later today. The European Commission announced that … “US Dollar & Japanese Yen Climb amid Risk Aversion”
Australian Dollar Retreats After Rising on Good Inflation Report
The Australian dollar rose on Wednesday after a positive inflation report released in Australia. But as of now, the currency has lost its gains due to risk aversion that prevailed on markets. The Australian Bureau of Statistics reported that the Consumer Price Index rose by 1.6% in the September quarter (1.5% with seasonal adjustments). The increase followed the 1.9% drop in the previous three months. Year-on-year, the index increased by 0.7%. The trimmed mean CPI (which is … “Australian Dollar Retreats After Rising on Good Inflation Report”
Gold has three ways go in response to the 2020 Presidential Elections
Gold prices heavily depend on the fate of fiscal stimulus. A blue wave could unleash a golden age for the precious metal. If Trump remains is reelected, the reaction could be mixed. President Biden with a Republican Senate would cause a meltdown. Gold could power up if the government prints more money – that is the … “Gold has three ways go in response to the 2020 Presidential Elections”