The Indonesian rupiah fell along with most other Asian currencies against the US dollar today amid bets on an interest rate hike from the Federal Reserve in the near future. Prospects for an interest rate hike drove the dollar up, weakening other currencies in the meantime. Currently, CME FedWatch shows basically a 100% chance of a hike in June. That means less cheap money, making it less appealing for investors to risk buying … “Indonesian Rupiah Weakens on Fed Interest Rate Hike Bets”
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US Dollar Waits for GDP & Other Economic Reports
The US dollar gained on all its most-traded rivals last week, and traders wait to see if the currency will be able to continue its bullish run in the coming week. Analysts expected that the greenback will be mainly driven by macroeconomic fundamentals, though politics may also affect the US currency. The most anticipated report is the first (advance) estimate of US gross domestic product in the first quarter of 2018. Economists … “US Dollar Waits for GDP & Other Economic Reports”
GBP & CAD Fall on Poor Data, Interest Rate Outlook
The Great Britain pound fell during the past trading week on poor macroeconomic data and concerns that the Bank of England will postpone the planned interest rate hike. The Canadian dollar had the similar issues. Weak inflation and disappointing retail sales led to concerns that the BoE will be reluctant to proceed with monetary policy normalization. Indeed, BoE Governor Mark Carney acknowledged that macroeconomic data was mixed recently. … “GBP & CAD Fall on Poor Data, Interest Rate Outlook”
Swiss Franc Falls Below 1.20 Against Euro
The Swiss franc fell below the historically important level of 1.20 versus the euro as the risk appetite drove investors away from safe currencies. Still, Swiss National Bank Chairman Thomas Jordan saw no reason to abandon the extremely loose monetary policy. The franc traded below the 1.20 level defended by the SNB during its short-lived currency peg to the euro, which it has unexpectedly abandoned in January 2015. Yet Jordan … “Swiss Franc Falls Below 1.20 Against Euro”
USD/JPY Rises as Japan’s Inflation Slows
The Japanese yen fell against the US dollar today as nation’s inflation slowed last month. The currency also dropped against other rivals but has trimmed its gains by now, and against the euro it actually moved above the opening level. The Statistics Bureau reported that Japan’s core Consumer Price Index rose 0.9% in March from a year ago. Compared to the previous month, the index fell 0.1%. The Ministry of Economy, … “USD/JPY Rises as Japan’s Inflation Slows”
GBP/USD: Squeeze Has Some Room To Go On Fading Well-Populated Long Positions – TD
The pound suffered from stagnant wages, weak inflation, falling retail sales, a dovish Carney and worries about the Irish border. So, the falls may not be over just yet. Here is their view, courtesy of eFXdata: TD Research discusses GBP outlook and keeps flagging near-term downside risks, noticing that GBP continues to lag the broader … “GBP/USD: Squeeze Has Some Room To Go On Fading Well-Populated Long Positions – TD”
New Zealand Dollar Loses Gains Despite Positive CPI
The New Zealand dollar attempted to rally today, but failed and followed its Australian counterpart in decline. The currency dropped even as the inflation print came out better than expected. The Consumer Price Index rose 0.5% in the March quarter according to the data from Statistics New Zealand. It was a bigger growth than 0.4% predicted by economists and 0.1% registered in the previous three months. Yet some analysts pointed out that … “New Zealand Dollar Loses Gains Despite Positive CPI”
Australian Dollar Soft Following Disappointing Employment Report
The Australian dollar dropped following the release of a disappointing employment report. While the currency attempted to bounce afterwards, it failed and continued to move down, erasing the intraday gains. Australian employment grew by 4,900 jobs in March, far less than analysts had predicted 20,300. Furthermore, only part-time employment contributed to the increase as full-time employment actually dropped. And on top of that, the February reading got a massive negative revision from a solid growth … “Australian Dollar Soft Following Disappointing Employment Report”
British Pound Declines on Weak UK Retail Sales Data, Later Rallies
The British pound today declined against the US dollar following the release of disappointing UK retail sales data in the early European session. However, the pound recovered almost immediately and went on to hit a daily high in the mid-European session, before declining from the early American session. The GBP/USD currency pair today gained over 80 points to rally from a low of 1.4161 to a high of 1.4246, but was on a downtrend at the time of writing. The GBP/USD currency … “British Pound Declines on Weak UK Retail Sales Data, Later Rallies”
CAD: Balanced BoC Tone; Comfortable Keeping Our Call For A July Hike – CIBC
The Bank of Canada left rates unchanged and increased its estimate for the output gap. Nevertheless, the hawkish bias remains. What’s next? Here is their view, courtesy of eFXdata: CIBC Research discusses the reaction to today’s BoC policy meeting and notes that the BoC statement struck a fairly balanced tone today, which leaves CIBC comfortable with expecting … “CAD: Balanced BoC Tone; Comfortable Keeping Our Call For A July Hike – CIBC”