The Swiss franc was trying to hold its ground today and managed to do so against some of its rivals. It was made complicated by lackluster domestic macroeconomic data and the improving market sentiment. The KOF Economic Barometer fell from 103.3 in April (negatively revised from 105.3) to exactly 100.0 in May instead of rising to 104.6 as analysts had promised. That was the lowest reading since December 2015. The report commented … “Swiss Franc Tries to Hold Ground, Weighed by Poor Macroeconomic Data”
Author: admin_mm
Yen Weakens Despite Solid Macroeconomic Data
The Japanese yen was relatively soft today despite solid macroeconomic reports released in Japan over the trading session. The reason for the currency’s unimpressive performance was the improving market sentiment. Japan’s retail sales rose 1.6% in April from a year ago, beating the median forecast of a 0.9% increase and the 1.0% growth registered in March. The Cabinet Office consumer confidence was at 43.8 in May, up from 43.6 in April and in line with market … “Yen Weakens Despite Solid Macroeconomic Data”
EUR/USD Trades at 10-Month Lows on Italian Political Crisis
The EUR/USD currency pair today dropped to new 10-month lows following political turmoil in Italy where a new election is likely to happen as early as July. Investors dumped the euro as Italian bond yields rose to new highs, which increased the yield spread between the German and Italian 2-year bonds. The EUR/USD currency pair today dropped from a high of 1.1639 to a fresh 2018 low of 1.1510 and was on a downtrend at the time of writing. The political … “EUR/USD Trades at 10-Month Lows on Italian Political Crisis”
Swiss Franc Firm on Risk Aversion & Economic Data
The Swiss franc was rather firm today. Risk aversion and decent domestic macroeconomic data helped the currency to carve out gains versus its major rivals. According to the report from the Federal Statistics Office, Switzerland’s trade balance widened to CHF 2.80 billion in April from the revised CHF 2.25 billion in March. The actual reading was far better than the forecast value of CHF 2.23 billion. As for the future reports, the KOF … “Swiss Franc Firm on Risk Aversion & Economic Data”
Japanese Yen Remains Strong As European Political Turmoil Persists
The Japanese yen was among the strongest currencies today as the ongoing political crisis in Europe continued to bolster the currency. Domestic macroeconomic data was decent enough to provide further support to the yen. Japan’s Statistics Bureau reported that the unemployment rate stayed at 2.5% in April, unchanged from March. Experts were expecting such reading. Now, traders wait for tomorrow’s release of retail sales and consumer confidence. USD/JPY fell from 109.40 … “Japanese Yen Remains Strong As European Political Turmoil Persists”
9 questions and answers about a potential Italian exit of the euro-zone
Italy’s political crisis triggered the worst sell-off of bonds since the height of the crisis and a sharp fall in the EUR/USD. Worries about Italexit, Italeave, or an Italian exit from the euro-zone have risen sharply. In a series of 9 questions and answers, we attempt to explain the crisis and what may happen next. … “9 questions and answers about a potential Italian exit of the euro-zone”
Japanese Yen Firms as Optimistic Market Sentiment Sours
The Japanese yen started the trading week soft amid the seemingly improving market sentiment, but now the currency is trading above the opening level against its major peers. Traders woke up with a positive mood today due to the news that the summit between US and North Korean leaders may yet happen. On top of that, markets welcomed what seemed to be sort of a defeat of anti-euro forces in Italy. Yet … “Japanese Yen Firms as Optimistic Market Sentiment Sours”
European Politics Boosts Euro Intraday, Make It Reverse Rally Later
The euro backed off to new lows after attempting to rally earlier today. European politics was the main driver for the currency. Italian President Sergio Mattarella vetoed the appointment of euroeskeptic Paolo Savona as a new economy minister, resulting in a surge of optimism among investors. Yet the positive sentiment was short-lived as Mattarella will likely face calls for impeachment and resignation from populist anti-establishment parties. Meanwhile, Spanish opposition parties called for a vote … “European Politics Boosts Euro Intraday, Make It Reverse Rally Later”
Japanese Yen Ends Week Strongest amid Risk Aversion
The Japanese yen ended the week as the strongest among the major currencies, supported by risk aversion. Market participants were seeking a safe haven amid geopolitical tensions and economic worries, and that led them to the safety of Japan’s currency. The market sentiment was very optimistic at the start of the week as it looked like prospects for a trade war between the United States and China were waning. Yet the optimism quickly evaporated after US President Donald … “Japanese Yen Ends Week Strongest amid Risk Aversion”
Turkish Lira Continues to Slide Despite Central Bank’s Efforts
The Turkish lira continued to slide today despite efforts from the nation’s central bank to stem the currency’s depreciation. The Central Bank of the Republic of Turkey made an emergency interest rate hike on Wednesday, raising the lending rate by 3 percentage points to 16.5%. Other rates, including the benchmark Marginal Funding Rate, remained without change. Apparently, that was not enough to prevent the collapse of the lira as the currency continued to fall afterwards. USD/TRY rose … “Turkish Lira Continues to Slide Despite Central Bank’s Efforts”