The Japanese yen is posting modest gains against its US counterpart on Thursday after the Chinese government encouraged renewed economic cooperation with the worldâs third-largest economy. The yen received a slight shot in the arm on various surveys that show a boost in key sectors. This year, the US has engaged in a bitter trade dispute with China, instituting a series of tariffs worth tens of billions of dollars on Chinese goods. Washington … “Japanese Yen Jumps on Renewed Cooperation With China”
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Euro Rallies on Huge Drop in Global Equity Markets, Later Declines
The euro today rallied higher against the US dollar from the early European session largely due to the massive pullback in global equity markets, which favored the single currency. The EUR/USD currency pair’s rally was further boosted by President Donald Trump‘s criticism of the Fed’s monetary policy position, which also contributed to the greenback’s weakness. … “Euro Rallies on Huge Drop in Global Equity Markets, Later Declines”
Canadian Dollar Weakens on Lower Crude Prices, Higher US Bond Yields
The Canadian dollar is trading lower against its US and European counterparts midweek. The loonie has been tumbling on lower crude oil prices and rising US bond yields that analysts fear could impact global growth. It appears that striking a new trilateral trade deal with the US and Mexico only provided short-term relief for the … “Canadian Dollar Weakens on Lower Crude Prices, Higher US Bond Yields”
British Pound Rallies on Brexit Progress Despite Weak UK Macro Data
The British pound today rallied higher against the US dollar from the early European session as it emerged that the European Union and the UK were about to reach a Brexit deal. The GBP/USD currency pair was further boosted by the fact that the US warned China against devaluing its currency, which did not favor … “British Pound Rallies on Brexit Progress Despite Weak UK Macro Data”
Euro Rallies as Italian-German Yield Spread Narrows
The euro rallied today but trimmed its gains against some rivals, including the Japanese yen and the Great Britain pound. The currency kept gains versus the US dollar and the Swiss franc, though. Some market analysts attributed the rally to the pause in the rise of US Treasury yields, though it looks like by now Treasuries have resumed movement to new multi-year highs. Others explained the euro’s strength by the narrowing spread in the Italian-German bond … “Euro Rallies as Italian-German Yield Spread Narrows”
Yen Down as Traders Feel No Need for Safe Haven, Positive Data Doesn’t Help
The Japanese yen was weak across the board today as markets calmed down and the sentiment stabilized, giving traders no incentive to buy safer currencies. Positive macroeconomic data did not help the currency. Cabinet Office reported that core machinery orders rose 6.8% in August from the previous month. That is instead of falling by 3.9% as analysts had predicted. The orders jumped as much as 11% in July. But as it often … “Yen Down as Traders Feel No Need for Safe Haven, Positive Data Doesn’t Help”
Aussie Unable to Hold onto Gains Caused by Improving Consumer Sentiment
Positive macroeconomic data helped the Australian dollar to rise overnight but the currency has trimmed its gains by now, losing them outright against some of its major peers, including the US dollar and the euro. The Westpac-Melbourne Institute Index of Consumer Sentiment rose 1% in October from the previous month. The index fell 3% in September. The report commented on the result: It is encouraging that these negatives seem to have, at least for the time … “Aussie Unable to Hold onto Gains Caused by Improving Consumer Sentiment”
US inflation needs to be really bad to stop the USD
US Core Inflation is expected to recover after a blip in August. Fed expectations for a hike in December are set to strengthen. Barring a second consecutive disappointment, the USD will likely remain bid. The US publishes its Consumer Price Index report for September on Thursday, October 11th, at 12:30 GMT. The Fed has two mandates: employment … “US inflation needs to be really bad to stop the USD”
Canadian Dollar Bounces, Following Other Riskier Currencies
The Canadian dollar behaved similarly to some other currencies, including the Australian dollar and the Great Britain pound, falling initially but bouncing later today. The most likely explanation for the choppy movement were changes in the traders’ sentiment. While initially risk aversion prevailed on the market, later speculators felt less need for a safe haven. The Canadian dollar had also own factors for determining its behavior. Among positive ones was the rally … “Canadian Dollar Bounces, Following Other Riskier Currencies”
Japanese Yen Trims Gains Caused by Risk Aversion
The Japanese yen gained intraday on risk aversion but has trimmed its gains by now. Currently, the yen trades above the opening level against the US dollar, flat versus the euro, and below the opening against the Great Britain pound. The clash between the European Union and Italy over the Italian budget continued to spoil the traders’ mood. Adding to the negative sentiment on the market was the downgrade of the global growth by the International Monetary Fund. Maurice Obstfeld, … “Japanese Yen Trims Gains Caused by Risk Aversion”