Today is Draghi Day. The ECB is set to make its decision and the scenarios are laid out. Where could the surprises come from? And beyond the ECB, what could move the euro? Here are three views: Here is their view, courtesy of eFXnews: EUR/USD: 2 Possible Surprises From ECB; EUR Positioning Into The Meeting … “EUR/USD ahead of the ECB: where are the risks?”
Author: admin_mm
UK GDP Surprises to Upside, Pound Climbs
The Great Britain pound climbed today following the report that showed that Britain’s economy grew last quarter faster than economists had expected, solidifying the case for an interest rate hike. UK gross domestic product rose 0.4% in the September quarter from the previous month according to the first, preliminary, estimate. It was a positive surprise as experts had predicted the same 0.3% rate of growth as in the June quarter. The positive data … “UK GDP Surprises to Upside, Pound Climbs”
Australian Dollar Sinks 1% After Inflation Misses Expectations
The Australian dollar sank today, losing about 1% of its value, after inflation data came out disappointing, eliminating hopes for an interest rate hike from the central bank. The headline inflation index rose 0.6% in the September quarter from the previous three months (without seasonal adjustments), missing expectations of 0.8% growth, though accelerating from the 0.2% rate of increase in the June quarter. Underline inflation rose 0.4% (adjusted for seasonal … “Australian Dollar Sinks 1% After Inflation Misses Expectations”
Canadian Dollar Weakens Against US Dollar on BoC Rate Decision
The Canadian dollar today weakened against its US counterpart after the Bank of Canada announced that it would maintain interest rates at the current levels. The release of the US new home sales data, which exceeded market expectations also contributed to the USD/CAD currency pair’s rally. The USD/CAD currency pair rallied by over 150 points from its daily low of 1.2633 hit just before the announcement to trade at highs around … “Canadian Dollar Weakens Against US Dollar on BoC Rate Decision”
EUR/USD Rallies Higher on Record German Business Climate Index
The EUR/USD currency pair today rallied higher after the release of an extremely high German IFO business climate index for the month of October. The currency pair’s rally was limited by the markets’ anticipation of the decision by the European Central Bank regarding the tapering of its quantitative easing program. The currency pair rallied by over 45 points to hit new highs around 1.1800, despite a slight pullback after the release of US data. The euro rallied higher … “EUR/USD Rallies Higher on Record German Business Climate Index”
British Pound Declines Against US Dollar as Brexit Worries Persist
The British pound was today on a downtrend against the US dollar even as Brexit worries remained the main driver behind the currency’s movement. The pound weakened against the US dollar on the back of comments made by Donald Tusk who said that the UK government could reverse Brexit if they so wanted. The GBP/USD currency pair today declined by over 100 points from its daily high hit during the Asian session. … “British Pound Declines Against US Dollar as Brexit Worries Persist”
Euro Moves Higher Against US Dollar as German Manufacturing Strengthens
The euro moved marginally higher against the US dollar on Tuesday as investors digested the latest reports on manufacturing activity within the eurozone. Positive readings for a number of manufacturing purchasing managersâ indexes reflected improving conditions for the sector in Germany, France, and the European Union. IHS Markit, a research institute that releases monthly reports on economic activity within major economies, said today that the eurozone manufacturing purchasing managersâ index rose to 58.6 in October. … “Euro Moves Higher Against US Dollar as German Manufacturing Strengthens”
NZ Dollar Falls After Rally as New Government Outlines Policies
The New Zealand dollar was rather volatile during today’s otherwise calm trading. The currency rallied at first, but pulled back later after the new coalition government outlined their policies and plans. The newly formed government announced its policies, including increasing the minimal wage. That boosted the kiwi initially as investors hoped that increasing wage inflation may prompt the Reserve Bank of New Zealand to raise interest rates. … “NZ Dollar Falls After Rally as New Government Outlines Policies”
Japanese Yen Weakens on Lower Manufacturing PMI, Politics
The Japanese yen weakened today following the report that showed slowdown of Japan’s manufacturing sector, though analysts argued that markets had little interest in economic data from Japan, continuing to pay more attention to Japan’s politics. The Nikkei Flash Japan Manufacturing Purchasing Managersâ Index dropped from 52.9 in September to 52.5 in October instead of rising to 53.1 as analysts had predicted. Still, a reading above 50.0 indicates expansion … “Japanese Yen Weakens on Lower Manufacturing PMI, Politics”
USD/JPY: How To Trade Fed Chair Nomination – Credit
John Taylor, Jerome Powell and also incumbent Janet Yellen are the final candidates to lead the Federal Reserve. With Trump being Trump, he keeps the tension high, like in his reality show. This provides room for volatility. How can this be traded? Here is the view from Credit Agricole Here is their view, courtesy of … “USD/JPY: How To Trade Fed Chair Nomination – Credit”