The euro today rallied higher against the US dollar following the release of the latest US employment change data in the early American session. The euro was also bid higher by the sell-off in global equity markets due to fears relating to the US-China trade truce and the recent arrest of the Huawei CEO in … “Euro Rallies Against US Dollar on Weak ADP Jobs Data, Later Declines”
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Yen Gains as Risk Aversion Allows to Ignore Comments from BoJ Chief
The Japanese yen gained on its most-traded rivals today, propelled higher by risk aversion. The general negative market sentiment allowed the currency to ignore dovish comments from the central bank’s chief. Bank of Japan Governor Haruhiko Kuroda dismissed possibility of an interest rate hike in the near future. He said today: Raising interest rates now to create policy space for future economic downturns may risk delaying achievement of our inflation … “Yen Gains as Risk Aversion Allows to Ignore Comments from BoJ Chief”
Australian Dollar Tanks, Falling for Fourth Session
The Australian dollar tanked today, falling for the fourth consecutive trading session. Domestic macroeconomic data was mixed, but it was overshadowed by global news that was negative to the market sentiment. The big news on Thursday was the arrest of Huawei CFO Meng Wanzhou in Canada. The chief financial officer of the Chinese tech giant will be extradited to the United States to face charges of dealings with Iran that violate US sanctions. … “Australian Dollar Tanks, Falling for Fourth Session”
Separating the risky from the safe currencies
Risk sentiment is the name of the game in recent days and will likely continue for quite a while. What currencies should we focus on? Here is their view, courtesy of eFXdata: SEB Research discusses the relationship between FX markets and risk sentiment in 2018. “The USD has outperformed all other G10 currencies in 2018, although … “Separating the risky from the safe currencies”
Japanese Yen Weakens on Mixed Economic Data
The Japanese yen is weakening midweek against its American counterpart on mixed economic data. The yen, which has lost against the greenback so far this year, is finding direction on solid services data and a reduction in business spending. This comes as many experts suggest that the fourth-quarter may actually rebound from the disappointing third-quarter. On Wednesday, the Markit/Nikkei Japan Services Purchasing Managers Index (PMI) was shown to stand … “Japanese Yen Weakens on Mixed Economic Data”
Canadian Dollar Tanks on Dovish BoC
The Canadian dollar sank today following the release of a surprisingly dovish policy statement from the Bank of Canada. The currency traded at the lowest level since September against most of its major rivals, while against the US dollar the loonie touched the lows not seen since June 2017. The BoC left its main interest rate at 1.75%. While it was not unexpected, the dovish tone of the bank’s statement surprised markets. Among … “Canadian Dollar Tanks on Dovish BoC”
Euro Rallies Higher Boosted by Positive Italy and Brexit Expectations
The euro today rallied higher against the US dollar during the European session as market sentiment stabilized on positive developments in the Italian budget standoff. Positive PMI releases by IHS Markit from across the eurozone also contributed to the EUR/USD currency pair’s rally as did the latest Brexit developments. The EUR/USD currency pair today rallied … “Euro Rallies Higher Boosted by Positive Italy and Brexit Expectations”
GBP/USD: 3 scenarios for the Brexit vote in Parliament
The UK Parliament will vote on the Brexit deal on December 11th. Uncertainty is high, but the government is unlikely to win. There are three scenarios with three different reactions for the Pound. Nearly two and half years after the British people shocked the establishment by voting to leave the European Union, an agreement has … “GBP/USD: 3 scenarios for the Brexit vote in Parliament”
Aussie Drops After GDP Misses Expectations
The Australian dollar tumbled against its most-traded counterparts today as nation’s economic growth was disappointing. The general negative market sentiment was also unfavorable to the currency. The Australian Bureau of Statistics reported that gross domestic product rose 0.3% in the September quarter from the previous three months on a seasonally adjusted basis. The actual increase was two times slower than 0.6% predicted by analysts. Furthermore, it was much slower … “Aussie Drops After GDP Misses Expectations”
CAD: BoC Sets For An Obvious Pause With A Slightly Hawkish Tone On Wed – CIBC
The Bank of Canada is set to leave rates unchanged. But will they hint of fresh rate hikes? Here is their view, courtesy of eFXdata: CIBC Research discusses its expectations for tomorrow’s BoC December policy meeting. That sets up the Bank of Canada for an obvious pause in rates this week, but the more interesting … “CAD: BoC Sets For An Obvious Pause With A Slightly Hawkish Tone On Wed – CIBC”