The Japanese yen fell today, demonstrating the weakest performance among the major currencies, despite the better-then-expected inflation report. Analysts blamed the risk-on market sentiment for the decline. The Tokyo core Consumer Price Index rose 1.1% in January, year-on-year, while economists had predicted the same 0.9% rate of growth as in December. Released yesterday, the Nikkei Flash Japan Manufacturing PMI showed a drop to 50.0 in January from 52.6 in December, whereas experts had … “Japanese Yen Declines Even as Inflation Beats Expectations”
Author: admin_mm
EUR: The ECB Effectively Closed The Door For Rates ‘Lift-off’ Under Draghi’s Watch – SEB
The ECB left its policy measures unchanged and acknowledged the slowdown. However, Draghi remained optimistic about wages. What’s next? Here is their view, courtesy of eFXdata: “As expected, today’s ECB (interim) meeting delivered no monetary policy changes. All policy parameters including the wording of forward guidance remained unchanged. Contrary to our expectation, however, the ECB … “EUR: The ECB Effectively Closed The Door For Rates ‘Lift-off’ Under Draghi’s Watch – SEB”
Euro Hits Weekly Lows on Weak PMIs, Rallies on Draghi Speech, Later Declines
The euro today fell to new weekly lows in the early European session following the release of weak PMI prints from across the eurozone by IHS Markit. The single currency later rebounded following the announcement of the European Central Bank’s monetary policy decision and a balanced speech by the ECB Governor. The EUR/USD currency pair today fell … “Euro Hits Weekly Lows on Weak PMIs, Rallies on Draghi Speech, Later Declines”
US Dollar Flat As Market Weighs Influx of Data
The US dollar is trading sideways on Thursday as investors comb through the recent data. The greenback has been trading at multi-week highs in recent trading sessions, looking to maintain the momentum from 2018 when it advanced about 5% on the year. According to the Department of Labor, the number of US workers applying for … “US Dollar Flat As Market Weighs Influx of Data”
EUR/USD enjoys Draghi’s balance, but could fall in March
The ECB’s message is finely balanced between risks and confidence. EUR/USD buys this relative confidence, at least for now. The door is open to a dovish shift in March. The European Central Bank left its policy and messages unchanged. The interest rate may still rise in September despite growing signs of a slowdown. President Mario Draghi balanced … “EUR/USD enjoys Draghi’s balance, but could fall in March”
USD: ‘A Peak Is One Thing, Depreciation Is Another’ – NAB
The US Dollar has been under pressure recently. Has it peaked? Where will it go next? Here is their view, courtesy of eFXdata: NAB Research discusses the USD outlook and maintains a structural bearish bias through 2019. “When we think about the USD’s medium-term trajectory, our view is conditioned by both valuation and structural considerations. In … “USD: ‘A Peak Is One Thing, Depreciation Is Another’ – NAB”
Chinese Yuan Rebounds From Two-Week Low As Economic Worries Fade
The Chinese yuan is rebounding from a two-week low as economic worries dissipate. The yuan, which was one of the weakest Asian currencies last year, is gaining on reports that the federal government does not want to see it weaken too much should it affect trade negotiations. There has been talk that the worldâs two … “Chinese Yuan Rebounds From Two-Week Low As Economic Worries Fade”
Canadian Dollar Declines Against US Dollar on Weak Retail Sales Data
The Canadian dollar today dropped to new daily lows against its US counterpart following the release of weak Canadian retail sales data. The loonie had made gains against the greenback earlier today as evidenced by the USD/CAD currency pair’s decline before retracing all of its gains after the release. The USD/CAD currency pair today dropped … “Canadian Dollar Declines Against US Dollar on Weak Retail Sales Data”
Fed Preview: Patience is priced in, but Powell’s tone could be decisive for the dollar
The Fed made a dovish shift in recent statements. Now it’s time to make it official. But how will the US Dollar react? A lot depends on Powell’s tone at the press conference. Fed decision: Wednesday: decision at 19:00, press conference at 19:30. In the final decision for 2018, the Federal Reserve raised interest rates … “Fed Preview: Patience is priced in, but Powell’s tone could be decisive for the dollar”
Yen Soft After BoJ Monetary Policy Meeting, Economic Forecast
The Japanese yen was soft today after the Bank of Japan performed a monetary policy meeting and revised its economic projections. The losses were not particularly big, though. As was widely expected, the BoJ left its monetary policy unchanged, with the main interest rate staying at -0.1%. As for economic projections, the central bank cut its growth forecast for the fiscal year of 2018 to 0.9%-1.0% from the October’s estimate of 1.3%-1.5%. The inflation forecast … “Yen Soft After BoJ Monetary Policy Meeting, Economic Forecast”