Author: admin_mm

The Australian dollar rallied today despite the passive stance of the nation’s central bank and adverse domestic macroeconomic data. The possible reasons for the rally were the positive report from China, Australia’s biggest trading partner, and the improving market sentiment. The Reserve Bank of Australia kept its main interest rate unchanged at 1.5% at today’s meeting. Such decision was widely expected, and analysts believe that the RBA will keep interest rates at the current … “Australian Dollar Wins in Battle Against Adverse Fundamentals”

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The South African rand gained against the US dollar today as the country’s economy exited its second recession in almost a decade. South African gross domestic product rose 2.5% in the second quarter of this year on an annual basis after falling 0.6% in the previous three months. The surge of agricultural output by 34% from the previous quarter most likely played a large part in the improvement of the economy. Yet analysts were worried that the economic … “Rand Gains as South African Economy Exits Recession”

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The EUR/USD currency pair today rallied higher after North Korea declared that it will continue its self defense measures in retaliation to the USA. The pair recovered from a brief decline that had been triggered by the release of disappointing Markit Eurozone services PMI early in the European session. The currency pair was trading in a 40 point range after opening today’s session trending downwards, but it took an upward … “EUR/USD Trades Sideways on North Korean and Eurozone News”

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As most other currencies, the Canadian dollar opened sharply lower today due to risk aversion caused by the North Korean nuclear test. Yet after volatile swings, the currency stabilized and did not move far from its opening level. The Canadian dollar is considered to be a risky commodity currency as opposed to safe currencies like the yen or the franc. That makes the loonie susceptible to deterioration of the market sentiment as it demonstrated today. … “Canadian Dollar Starts Trading Volatile, Stabilizes Later”

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The Great Britain pound was vulnerable today amid the cautious market sentiment, persisting uncertainty surrounding the Brexit, and poor economic data. Last week’s negotiations between the United Kingdom and the European Union did not show signs of progress towards compromise. This week, speculators turned their attentions towards debates about the Repeal bill in Britain’s Parliament that should outline laws and regulations in the independent country replacing the EU laws. … “Pound Remains Vulnerable to Adverse Fundamentals”

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The Australian dollar, like other currencies considered to be relatively risky, opened sharply lower today amid the risk-adverse market sentiment. Poor domestic macroeconomic data did not help the currency either. Australian company gross operating profits fell 4.5% in the June quarter from the previous three months on a seasonally adjusted basis, exceeding the drop by 3.9% predicted by analysts. What is more, the first quarter’s increase was revised … “Aussie Opens Sharply Lower amid Risk Aversion, Poor Data”

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Safe haven assets, like the Japanese yen, Swiss franc, and gold, started the week sharply higher as markets opened and reacted to the news that North Korea conducted yet another nuclear test on Sunday. North Korea claimed it performed a successful test of a powerful hydrogen bomb, and the 6.3 magnitude tremor (Richter scale) registered in the region supported that claim. It is interesting that the Japanese yen retained its safe … “Safe Assets Gain as North Korea in Spotlight Yet Again”

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