The Chinese yuan fell today as the People’s Bank of China set the daily fixing weaker. The PBoC set the midpoint for the yuan to 6.6205 per dollar on Monday, compared to the Friday’s close of 6.6195. The currency allowed to trade 2% higher or lower of the parity rate. The fact that the dollar was generally firm today also led to appreciation of the USD/CNY currency pair. USD/CNY rose 0.29% to 6.64 as of 13:59 GMT today. If you have any questions, … “China’s Central Bank Sets Reference Rate for Yuan Lower”
Author: admin_mm
Japanese Yen Opens Sharply Lower After Abe Secures Power
The Japanese yen opened sharply lower today after the ruling coalition won the snap general election over the weekend, preserving status quo and making it sure that the current ultra-loose monetary policy stays in place. Unlike Great Britain, where the similar gambit backfired spectacularly, Prime Minister Shinzo Abe’s bid to secure power paid off. The coalition led by his Liberal Democratic Party won more than two-third … “Japanese Yen Opens Sharply Lower After Abe Secures Power”
Euro Forecast: Markets Wait for ECB Policy Decision
Several central banks will make their policy decisions this week, but the European Central Bank will take the center stage as it should announce changes to its extraordinary stimulus program. The ECB officials signaled that they will discuss adjustments to the asset purchase program at the meeting on October 26. It is widely expected that the central bank will trim the size of monthly purchases to â¬30 billion from … “Euro Forecast: Markets Wait for ECB Policy Decision”
Politics Help Dollar End Week Strong
Politics played a major role in the moves on the Forex market during the past week. That was beneficial for the US dollar, but not so much for other currencies, including the euro, the Great Britain pound, and the New Zealand dollar. The major supportive factor for the greenback was the fact that Senate was able to approve a budget draft. Experts considered it to be a major stepping stone on the way to the planned tax reform. News from … “Politics Help Dollar End Week Strong”
US Dollar Jumps on Hopes for Tax Cuts as Senate Passes Budget Blueprint
The US dollar jumped today, registering the biggest daily gain in a month, due to the hopes for the tax reform promised by US President Donald Trump. US Senate approved a budget draft for the 2018 fiscal year with a simple majority. That should allowed Republicans to pursue tax cuts without support from Democrats. That, and also the outlook for an interest rate hike from the Federal Reserve, made the dollar a very appealing currency to traders. … “US Dollar Jumps on Hopes for Tax Cuts as Senate Passes Budget Blueprint”
Euro Mixed amid Clashing Fundamentals
The euro was mixed today, falling against the US dollar and the Great Britain pound, while rising versus the Japanese yen and the Swiss franc. The currency was supported by positive macroeconomic data and the outlook for an asset-purchase reduction, while dragged down by Europe’s political issues like the Brexit and separatism in Catalonia. It is expected that Spanish Prime Minister Mariano Rajoy may take direct control over Catalonia, invoking Article 155. … “Euro Mixed amid Clashing Fundamentals”
British Pound Rallies Higher Against US Dollar on PM May Speech
The British pound today rallied higher against the US dollar after a speech by British Prime Minister, Theresa May, where she called for collaboration between the EU and the UK on Brexit negotiations. PM May made her comments at an informal meeting with leaders of the European Council even as she remarked that the current Brexit talks had been challenging. The GBP/USD currency pair rallied by over 90 points from its daily … “British Pound Rallies Higher Against US Dollar on PM May Speech”
Will EUR/USD ride the ECB decision?
The euro is stuck in a range, with little influence from political events. The big event is the ECB decision. What can we expect? Here is the outlook from BNP Paribas and Nomura. Here is their view, courtesy of eFXnews: EUR/USD: Assessing Risk Into Next Week’s ECB – BNPP BNP Paribas FX Strategy Research discusses … “Will EUR/USD ride the ECB decision?”
South Africa Crashes on Ramaphosa Speculation
While the political turmoil in Spain took the spotlight in the news, other countries around the world were not immune to their share of problems in politics. South Africa was one of such countries, and that sent the South African Rand crashing down against the US dollar. Rumors were circulating that Deputy President Cyril Ramaphosa may be another victim of the cabinet reshuffle by President Jacob Zuma. That was just days … “South Africa Crashes on Ramaphosa Speculation”
Canadian Dollar Falls Sharply After Disappointing Macroeconomic Reports
The Canadian dollar fell sharply today after the release of macroeconomic reports, which turned out to be worse than analysts had anticipated. The drop of crude oil prices were also unfavorable to the currency. The Consumer Price Index rose 0.2% in September from August, missing the analysts’ average estimate of a 0.3% increase. Retail sales dropped 0.3% in August after increasing 0.4% in July. That was a complete surprise to economists who … “Canadian Dollar Falls Sharply After Disappointing Macroeconomic Reports”