The pound received two blows: wage growth remained stagnant at 2.8% y/y and then inflation tumbled to 2.5% y/y, lower than early expectations. This weighs on the BOE’s rate decision in May. Here is their view, courtesy of eFXdata: TD Research discusses GBP outlook and keeps flagging near-term downside risks (see here), noticing that a mix … “GBP/USD Likely To Break Below 1.40; EUR/GBP Likely Range-bound – TD”
Author: admin_mm
Euro Rallies Higher Against a Weakening US Dollar, Later Declines
The euro today rallied against the US dollar during the European session after the release of the final Eurozone CPI data. The euro was on a downtrend against the greenback during the Asian session following the risk-on sentiment in the global markets, which later resumed in the early American session. The EUR/USD currency pair today rallied by over 50 points from a daily low of 1.2341 to hit a high of 1.2397 in the early American session. The currency pair began … “Euro Rallies Higher Against a Weakening US Dollar, Later Declines”
British Pound Declines Against US Dollar on Weak UK Inflation Data
The British pound today dropped significantly against the US dollar following the release of disappointing UK Consumer Price Index data in the early European session. The pound’s decline started during yesterday session after the release of weak UK wages report and upbeat US housing report, which made the pound drop from its post-Brexit highs. The GBP/USD currency pair lost over 140 points to drop from a high of 1.4315 to a low … “British Pound Declines Against US Dollar on Weak UK Inflation Data”
Australian Dollar Soft After Leading Indicators Decline
The Australian dollar remained rather vulnerable today, falling against its most-traded rivals, though it remained slightly above the opening level versus the soft Japanese yen. The WestpacâMelbourne Institute Leading Index declined 0.22% in March from the previous month after rising 0.43% in February. The report explained the decline by the following reasons: Drivers of the slowdown in the month have been from the domestic components â a slowing labour market; and some weakness … “Australian Dollar Soft After Leading Indicators Decline”
Yen Falls vs. US Dollar, Reverses Losses vs. Other Rivals
The Japanese yen fell against the US dollar during the current trading session. While the currency had also been down versus other rivals intraday, currently the yen reversed its decline, erasing losses outright against some peers. Looking at today’s economic data, it seemed good for the yen. Japan’s trade balance turned from a deficit of ¥0.21 trillion in February to a surplus of ¥0.12 trillion in March. It was somewhat … “Yen Falls vs. US Dollar, Reverses Losses vs. Other Rivals”
Aussie Falls As RBA Hints at No Interest Rate Hike in Near Future
The Australian dollar was somewhat soft on Tuesday after the release of policy minutes by the Reserve Bank of Australia. Macroeconomic data from China, Australia’s biggest trading partner, did not help the currency, being rather mixed. The RBA released minutes of its April meeting today. The central bank confirmed that it expects to perform a hike, not a cut, as its next move: In current circumstances, members agreed that it was … “Aussie Falls As RBA Hints at No Interest Rate Hike in Near Future”
Canadian Dollar Rallies with Crude Oil, Not Bothered by Mixed Data
The Canadian dollar gained on most of its major peers on Tuesday. While Canada’s economic data was mixed, the silver lining for the currency was the rally of crude oil prices. Foreign investment in Canadian securities fell from C$5.6 billion in January to C$4.0 billion in February instead of rising to C$7.2 billion as analysts had predicted. Meanwhile, manufacturing sales increased by 1.9% in February, beating the average forecast of a 1.0% increase, after falling 1.3% … “Canadian Dollar Rallies with Crude Oil, Not Bothered by Mixed Data”
Euro Slips as ZEW Economic Sentiment Declines Sharply
The euro fell against most its major rivals (though not against the weak Great Britain pound) on Tuesday as the ZEW Economic Sentiment for Germany was rather disappointing. The ZEW Indicator of Economic Sentiment for Germany dropped sharply from 5.1 in March to -8.2 in April. While analysts had anticipated a decline into negative territory, they were still expecting a far better reading in neighborhood of -0.8. The report explained the deteriorating sentiment … “Euro Slips as ZEW Economic Sentiment Declines Sharply”
GBP/USD Declines on Mixed UK Jobs Report and Upbeat US Housing Data
The GBP/USD currency pair today traded lower after the release of mixed UK labour market report in the early European session. The currency pair cemented its losses during the early American session after the release of upbeat US housing data amid a resurgence in US dollar demand. The GBP/USD currency pair today lost over 70 points to decline from a high of 1.4377 to trade at a low of 1.4304 at the time of writing. The currency pair … “GBP/USD Declines on Mixed UK Jobs Report and Upbeat US Housing Data”
4 reasons for the BOC to prepare for a rate hike – BOC Preview
The BOC convenes for an important rate decision which also consists of new forecasts and a press conference. Canadian policymakers can be pleased with NAFTA progress, oil, and jobs but not all is rosy. The USD/CAD is apparently in a downtrend, but close to oversold territory. The Bank of Canada is likely to leave the … “4 reasons for the BOC to prepare for a rate hike – BOC Preview”