The US dollar weakened against a basket of currencies on Thursday, driven by a slowing national economy in the fourth quarter and a bump in jobless claims in the last week. The greenbackâs losses were capped by a positive business barometer that suggested renewed activity. According to the Bureau of Economic Analysis (BEA), the gross domestic product (GDP) advanced at a 2.6% annual pace in the October-to-December period, beating market forecasts of 1.9%. While fourth-quarter GDP was higher than median … “US Dollar Weakens As Economy Slows in Q4, Jobless Claims Rise”
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Euro Rallies Driven by Other Currency Cross, Drops on US GDP Data
The euro today rallied higher against the US dollar from the early European session driven largely by investor sentiment to hit over 3-week tops midway through the session. Shortly after, the EUR/USD currency pair plunged lower in a pullback that was compounded by the release of the upbeat US Q4 GDP data. The EUR/USD currency pair today rallied from a low of 1.1366 to a more than 3-week high of 1.1420 before retracing all … “Euro Rallies Driven by Other Currency Cross, Drops on US GDP Data”
Chinese Yuan Jumps on Data, Capped by Currency Manipulation Claims
The Chinese yuan is strengthening midweek on signs of an economic recovery, even though a government-sponsored enterprise (GSE) recently defaulted on its debt, sparking concerns about the worldâs second-largest economy. But the yuanâs gains were capped on accusations that Beijing was manipulating its currency. Bloomberg Economics released some interesting measurements regarding the state of Chinaâs once roaring economy. The gauges suggest that there are plenty of signs that … “Chinese Yuan Jumps on Data, Capped by Currency Manipulation Claims”
Canadian Dollar Rallies on Higher Oil Prices and Mixed CPI Data
The Canadian dollar today rallied higher against its southern neighbor driven largely by rising oil prices during the European session. The loonie extended its gains in the early American session after the release of mixed Canadian inflation data to drive the USD/CAD currency pair to new daily lows. The USD/CAD currency pair today dropped from a high of 1.3176 to a low of … “Canadian Dollar Rallies on Higher Oil Prices and Mixed CPI Data”
Sterling Rallies as Theresa May Changes Stance
The Great Britain pound gained against its major rivals today as British Prime Minister Theresa May changed her stance regarding the no-deal Brexit and delay for Britain’s separation from the European Union. Previously, May was strongly opposing a delay for the Brexit and wanted to keep the “no-deal Brexit” scenario in the cards. But now, she completely switched gears as chances are her Brexit plans will be turned down once … “Sterling Rallies as Theresa May Changes Stance”
Australian Dollar Dragged Down by Market Sentiment, Poor Data
The Australian dollar was weak today, falling for the same reasons as its New Zealand counterpart: the negative market sentiment and poor domestic macroeconomic data. The Australian Bureau of Statistics reported that construction work done fell 3.1% in the December quarter from the previous three months on a seasonally adjusted basis. That was completely opposite to analysts’ expectations of a 0.6% increase. The decline in the September quarter got a substantial negative revision from 2.8% … “Australian Dollar Dragged Down by Market Sentiment, Poor Data”
NZ Dollar Falls on Risk Aversion, Trade Deficit
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”
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”