US ISM Manufacturing PMI shows contraction that indicates growing chances of a recession. The US dollar dropped on growing chances for a Fed cut. EUR/USD gains may come to an end ahead of the ECB decision. The US manufacturing sector may be contracting – indicating a recession. ISM’ Purchasing Managers’ Index (PMI) for the manufacturing … “EUR/USD may resume falls despite upcoming US recession”
Author: admin_mm
RBA may send the Aussie down – without cutting rates
The RBA is set to leave interest rates unchanged at 1%. The bank may convey a worried message amid growing uncertainty and weak data. AUD/USD is vulnerable to falling to new lows. The relative calm may make way to a plunge to new ten-year lows – even if the Reserve Bank of Australia maintains the … “RBA may send the Aussie down – without cutting rates”
USD/CAD may rise after Canadian GDP
Economists expect Canadian growth of 3% in the second quarter. Upbeat growth may be a one-off amid a sea of issues. USD/CAD may drop in response to the news but rise afterward. Economists expect a 3% annualized growth rate in a developed economy – and they may be correct in the case of Canada for … “USD/CAD may rise after Canadian GDP”
Why US GDP may weigh on the dollar
Updated US GDP figures have shown that the economy grew by 2% annualized in Q2. Robust consumption outweighed a contraction in investment. The odds of a rate cut have grown and the dollar may struggle. Headlines do not always tell the full story – and that is the story in today’s US Gross Domestic Product … “Why US GDP may weigh on the dollar”
Germany needs a new government to end the recession
Germany is on the verge of a recession and may take the whole euro-zone with it. Monetary stimulus by Draghi and later Lagarde may be insufficient. A change of guard in Berlin may be needed for a significant difference. The euro may continue suffering until then. The locomotive of Europe is at a standstill – … “Germany needs a new government to end the recession”
Fed overwhelmed by Trump’s trade wars – what’s next for USD?
Fed Chair Jerome Powell has hinted of more stimulus in Jackson Hole. Monetary policy seems insufficient to battle a global downturn due to trade. The dollar is set to react differently to different currencies. “The most powerful central banker in the world” – is how we and others characterize Fed Chair Jerome Powell. While that … “Fed overwhelmed by Trump’s trade wars – what’s next for USD?”
German PMI preview: Three scenarios with a risk for EUR/USD
Prospects for Germany’s economy have likely remained grim in August. The ECB is watching the survey data ahead of its next decision. FXStreet’s Surprise Index is pointing to a disappointing outcome that may weigh on EUR/USD. A car cannot accelerate without a strong engine, and a train is unable to advance if its front car … “German PMI preview: Three scenarios with a risk for EUR/USD”
5 signs Trump is losing the trade war
The US-Sino trade spat is raising market volatility. Five significant developments are indicating President Trump is losing. The US dollar has yet to react to developments. “Trade wars are good and easy to win” – said US President Donald Trump on March 2018. Nearly a year and a half later, Chinese industrial output growth has … “5 signs Trump is losing the trade war”
UK inflation may fall and take GBP/USD with it
GBP/USD has been leaning lower amid ongoing Brexit and trade concerns. The UK jobs report has shown an unexpected rise in the jobless rate but rising wages. Tuesday’s four-hour chart is pointing to further falls. Brexit has been out of the spotlight – but sterling is struggling anyway. UK unemployment has risen to 3.9% in June … “UK inflation may fall and take GBP/USD with it”
GBP/USD may struggle with high wage expectations
The UK is expected to report a low unemployment rate and a robust increase in wages. High expectations may result in a disappointment, lowering expectations for a rate hike. GBP/USD – already struggling with Brexit – has room to fall. Unemployment at 3.8% and annual wage growth matching that rate – such headlines may fuel … “GBP/USD may struggle with high wage expectations”