The dollar is continuing to ease after experiencing a robust rally during the first half of August. After trading sideways for most of the summer, the greenback surged against most major currencies rallying to 1.13 against the Euro but has since rebounded climbing back above the 1.16 handle. Treasury yields appear to have been part … “Will Trump Weaken the Dollar despite the Fed’s Rate Hike?”
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Chinese Yuan Weakens Against Greenback, Snaps Three-Day Winning Streak
The Chinese yuanâs recent rally has come to an end, snapping its three-day winning streak on Wednesday. The currency weakened against the American counterpart midweek amid ballooning corporate demand for cheaper US dollars. Can the yuan renew the rally this week ahead of some crucial economic data? According to Reuters, corporate clients went on a dollar-buying binge as state-owned financial institutions were selling greenback reserves. Traders paused because they … “Chinese Yuan Weakens Against Greenback, Snaps Three-Day Winning Streak”
Euro Falls Against Resurgent US Dollar Amid Upbeat US GDP Data
The euro today fell against the US dollar, which was on a recovery path following yesterday’s selloff that was triggered by the risk-on market sentiment. The EUR/USD currency pair headed lower in the early American session following the release of the US Q2 GDP data, which beat consensus estimates. The EUR/USD currency pair today dropped … “Euro Falls Against Resurgent US Dollar Amid Upbeat US GDP Data”
3 scenarios for the upcoming $200 billion US tariffs on China
The US is set to impose massive tariffs on China in the first week of September. The move has significant consequences for the global economy and currencies. Here are three scenarios for the significant escalation and the potential forex reactions. The US imposed tariffs on $50 billion worth of Chinese imports so far. China has … “3 scenarios for the upcoming $200 billion US tariffs on China”
Pound Strengthens as Shop Prices Show End of Deflation
The Great Britain was relatively strong today as data showed that shop prices showed inflation for the first time in more than five years. The Brexit fears were still weighing on the currency. The Shop Price Index reported by British Retail Consortium increased 0.1% in August, year-on-year, after falling 0.3% in July. It was the first increase in more than five years. While the data was supportive to the sterling, market participants … “Pound Strengthens as Shop Prices Show End of Deflation”
Japanese Yen Extends Losses on Wednesday
The Japanese yen was weak during the current trading week. The Wednesday’s session was no different as the currency fell against most major rivals, though managed to gain on the soft euro. The major theme of the week was the successful outcome of the preliminary trade talks between the United States and Mexico. That led to hopes that the similar success can be reached in negotiations with Canada and perhaps even other US trading partners. … “Japanese Yen Extends Losses on Wednesday”
Canadian growth may be great, but NAFTA hangs above
Canada’s Q2 GDP was likely much better than Q1. A high growth rate will drive interest rates higher. Any NAFTA headlines impacting future growth can overshadow past growth figures Canada releases Gross Domestic Product data on Thursday, August 30th, at 12:30 GMT. Canada is unique in publishing GDP on a monthly basis contrary to other … “Canadian growth may be great, but NAFTA hangs above”
EUR/USD: Have We Seen The Lows In EUR/USD? Where To Target? – Credit Agricole
EUR/USD is sliding after reaching new monthly highs yesterday. What’s next? Is it poised to resume the rally after the recent correction? Here is their view, courtesy of eFXdata: Credit Agricole CIB Research discusses EUR/USD outlook and thinks that the lows are already in for the year with a scope for targeting 1.21 by year-end. “…Renewed USD … “EUR/USD: Have We Seen The Lows In EUR/USD? Where To Target? – Credit Agricole”
Canadian Dollar Touches Three-Month High on US Trade Deal Hopes
The Canadian dollar is nearing its best level in three months as investors are hopeful that a new trade deal can be reached with the US and Mexico. After President Donald Trump and his administration announced a new trade pact with Mexico, the White House confirmed it will now concentrate its efforts on Canada, hopefully … “Canadian Dollar Touches Three-Month High on US Trade Deal Hopes”
Pound Rallies Higher on Risk-On Sentiment and Weak US Dollar
The British pound today rallied higher against the US dollar in a move that was largely fueled by the greenback’s decline following yesterday’s geopolitical events. The trade deal announced between the US and Mexico triggered a risk-on sentiment across the global financial markets, which triggered a significant selloff of the US dollar boosting the pound. … “Pound Rallies Higher on Risk-On Sentiment and Weak US Dollar”