The euro today rallied to new daily highs breaking out of a 3-day losing streak as markets reacted to Jerome Powell’s dovish comments during his testimony before Congress. The EUR/USD currency pair performance today was largely driven by investor sentiment and US dollar dynamics due to the empty European dockets. The EUR/USD currency pair today … “Euro Rallies to 3-Day Highs As Powell Hints at Future Rate Cuts”
Author: admin_mm
Powell five punches and where next for EUR/USD
Fed Chair Powell has opened the door to rate cuts and weighed on the USD. Five critical dovish points accumulate to a bleak picture. EUR/USD has jumped from the lows and faces a new technical setup. Markets have been expecting the Federal Reserve to cut rates for several weeks – and Federal Reserve Chair Jerome Powell more than confirmed … “Powell five punches and where next for EUR/USD”
Chinese Yuan Rallies Despite Bad Inflation, Auto Sales Data
The Chinese yuan is rallying midweek against some of its most traded currency rivals. Despite vehicle sales tumbling in June and inflation coming in lower than expected, the yuan is strengthening, which could be attributed to renewed trade negotiations between the worldâs two largest economies. According to the China Association of Automobile Manufacturers (CAAM), car sales fell 9.6% in June from the same time a year ago to 2.06 million … “Chinese Yuan Rallies Despite Bad Inflation, Auto Sales Data”
Pound Mixed After Slew of Economic Reports
The Great Britain pound was mixed today, falling against some rivals while rising versus others. Such behavior is not surprising, considering that Britain’s macroeconomic data released over the trading session was mixed as well. The sterling was trying to erase losses but currently is not successful. The Office for National Statistics reported that gross domestic product rose 0.3% in May from the previous month, … “Pound Mixed After Slew of Economic Reports”
Aussie Firm Despite Domestic & China’s Data
The Australian dollar was firm today despite poor macroeconomic data, both domestic and in China, Australia’s biggest trading partner. The possible reason for the rally was profit-taking after yesterday’s huge slump. The currency fell against some rivals intraday but has erased losses by all of them by now. The Westpac-Melbourne Institute Index of Consumer Sentiment dropped 4.1% in July after declining 0.6% in June. The report said it was troubling … “Aussie Firm Despite Domestic & China’s Data”
AUD/CAD After It Went Beneath 0.9100
The Australian dollar vs. the Canadian dollar considered the direction of the main trend, continuing the downwards move. What could happen next is very interesting. Long-term perspective From the high of 0.9614, the pair finds itself in a descending trend which respected the important levels, confirming each of them as resistance before the next leg down. Now, as the price went under the next important level, represented by the psychological level of 0.9100 (0.91048 on the chart), further … “AUD/CAD After It Went Beneath 0.9100”
Japanese Yen Soft After PPI Falls Unexpectedly
The Japanese yen was soft against all of its major peers today. While investors were still nervous ahead of the testimony of Federal Reserve Chairman Jerome Powell, giving them incentive to stick to safer currencies, domestic macroeconomic data was unfavorable to the yen. The Bank of Japan reported that the Producer Price Index fell 0.1% in June from a year ago after rising 0.6% in May. That was a total surprise … “Japanese Yen Soft After PPI Falls Unexpectedly”
Great Britain Pound Falls with Retail Sales
The Great Britain pound was weak on Tuesday amid risk aversion on the Forex market. Domestic macroeconomic data was not doing the sterling any favors either. Like-for-like retail sales reported by British Retail Consortium fell 1.6% in June, year-on-year. That is compared to the drop by 1.5% predicted by economists and the decline by 3.0% registered in May. Helen Dickinson, Chief Executive at BRC, blamed the Brexit for the underwhelming data: Overall, the picture … “Great Britain Pound Falls with Retail Sales”
Swiss Franc Strong amid Risk Aversion, Falling Unemployment
The Swiss franc, as well as other safe currencies like the US dollar and the Japanese yen, were extremely strong on Tuesday amid speculations whether the Federal Reserve will cut interest rates this year and how much. Domestic macroeconomic data was also supportive of the Swissie. Friday’s better-than-expected nonfarm payrolls made traders question whether the Fed will cut rates anytime soon. Market participants wait for Fed Chair Jerome … “Swiss Franc Strong amid Risk Aversion, Falling Unemployment”
USD/MXN Surges After Mexican Finance Minister Resigns
The Mexican peso sank versus the US dollar today amid political turmoil caused by the surprise resignation of Mexico’s finance minister. Nation’s consumer inflation slowed a bit last month but was not bad overall. In a surprise move, Carlos Urzúa resigned from his office, writing a highly critical resignation letter. He cited disagreements with the government over economic issues as one of the reasons for his decision, saying: Some … “USD/MXN Surges After Mexican Finance Minister Resigns”