The euro rallied today as fears about Europe’s political problems receded, while optimism caused by the last week’s inflation data continued to support the currency. Concerns about political turmoil calmed down as Italy got a new government after all, while the no-confidence vote in Spain resulted in a new prime minister. Experts remained worried, though, that the Italian government is populist and euro-skeptic, which is likely to cause clashes between … “Euro Rises as Fears About European Politics Wane”
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Swiss Franc Retreats vs. Euro, Gain on Other Majors
The Swiss franc gained on some of its major peers today, including the US dollar, but fell versus the euro as concerns about European politics receded. As for news from Switzerland itself, the manufacturing Purchasing Managers’ Index released on Friday showed a drop from 63.6 to 62.4 in May, in line with market expectations. Several other reports are scheduled for the current week, including inflation data on Wednesday and the unemployment rate on Thursday. USD/CHF … “Swiss Franc Retreats vs. Euro, Gain on Other Majors”
Australian Dollar Gets Boost from Retail Sales
The Australian dollar rose sharply today. Analysts explained the rally by a better-than-expected retail sales report. The Australian Bureau of Statistics reported that retail sales increased 0.4% in April from March. That is compared to the predicted increase of 0.3% and the no-change reading registered in March. This week will be eventful for the Aussie, with the Reserve Bank of Australia policy meeting and several important macroeconomic reports. AUD/USD climbed from 0.7559 to 0.7656 … “Australian Dollar Gets Boost from Retail Sales”
US Dollar Ends Volatile Week Soft
The currency market was a roller coaster this week as currencies were swinging up and down on political turmoil in various parts of the world. The US dollar ended the week as one of the weakest currencies despite the very positive employment report. The main theme at the start of the week was political turmoil in Europe. Later, concerns about the situation eased and a trade war between the United States and their allies grabbed attention of traders. As for this week’s macroeconomic … “US Dollar Ends Volatile Week Soft”
Non-Farm Payrolls Lift US Dollar
The US dollar rallied against most major peers today after employment data showed better-than-expected readings for all major indicators. The Great Britain pound managed to outperform the greenback, though, thanks to the positive report about Britain’s manufacturing. Nonfarm payrolls showed a healthy growth of 223,000 in May, which was far bigger than 189,000 promised by economists. The unemployment rate unexpectedly fell by 0.1 percentage point to 3.8%. Average hourly … “Non-Farm Payrolls Lift US Dollar”
Sterling Gets Boost from Britain’s Improving Manufacturing
The Great Britain pound dipped at the start of the current trading session but halted its decline later and attempted to rally. The currency got additional boost from the better-than-expected manufacturing report. The seasonally adjusted IHS Markit/CIPS Manufacturing Purchasing Managers’ Index edged up to 54.4 in May from 53.9 in April. That is compared to a drop to 53.5 predicted by analysts. It is important to note, though, that the April’s reading was the lowest … “Sterling Gets Boost from Britain’s Improving Manufacturing”
Australian Dollar Lower amid Mixed Data, Trade Wars
The Australian dollar fell today amid mixed macroeconomic data released over the trading session in Australia and its major trading partner, China. Risk aversion caused by trade wars between the United States and their allies also hurt the currency. The Australian Industry Group Australian Performance of Manufacturing Index fell to 57.5 in May from 58.3 in April. The Index of Commodity Prices reported by the Reserve Bank of Australia rose 3.6% in May from … “Australian Dollar Lower amid Mixed Data, Trade Wars”
Pound Shows Weakness Despite Supportive Domestic Data
The Great Britain pound attempted to rally today but failed. Currently, the sterling trades at the opening level against some rivals and fell far below it versus others. Thursday’s macroeconomic data was generally positive, but that did not help the currency. The GfK UK Consumer Confidence improved from -9 in April to -7 in May, beating analysts’ expectations. The Nationwide House Price Index was the only outright negative … “Pound Shows Weakness Despite Supportive Domestic Data”
Dollar Soft as USA Prepares to Implement Tariffs on Allies
The US dollar was rather soft today, falling against its most-traded rivals, though it has managed to pare losses versus some of its peers by now. The major topic for today was expiration of the tariff exemption for the closest US allies. Back in March, US President Donald Trump announced tariffs on steel and aluminum imports but made an exemption for the key trading partners, including Canada, Mexico, and the European Union. The exemption … “Dollar Soft as USA Prepares to Implement Tariffs on Allies”
USD/JPY: Below 100 If Abe Steps Down On A Defeat In September Leadership Election – Nordea
While North Korea, Iran, and trade wars have taken center stage, politics in Japan remain of importance. The team Nordea assesses the potential for fresh movements in Abe loses his job. Here is their view, courtesy of eFXdata: Nordea Research discusses USD/JPY outlook and flags a significant macro risk in Japan in the upcoming leadership election … “USD/JPY: Below 100 If Abe Steps Down On A Defeat In September Leadership Election – Nordea”