Fed preview: reasons to be worried – 3 scenarios

The ECB talked about diminishing downside risks, at least to growth. In the US, the Federal Reserve faces materializing downside risks. Will it ignore them for now in hope they are blips? Or acknowledge the downturn, shut the door on a June hike and send the dollar down?  Here is a preview of the May … “Fed preview: reasons to be worried – 3 scenarios”

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New Zealand Dollar Fails to Hold onto Gains After Employment Data

The New Zealand dollar rallied today following the release of impressive employment data, but the currency was unable to hold gains for long. Currently, the kiwi trades flat versus the US dollar and trimmed its gains significantly versus other most-traded rivals. New Zealand employment grew by 1.2% in the March quarter from the previous three months, more than analysts had predicted — 0.8%. The unemployment rate dropped from 5.2% to 4.9% … “New Zealand Dollar Fails to Hold onto Gains After Employment Data”

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EUR/USD could advance towards 1.13 on the next ECB moves

EUR/USD ended Draghi’s press conference on a mixed tone, but the rising inflation levels imply some easing on the easing. What’s the trade? Here are two opinions: Here is their view, courtesy of eFXnews: EUR: ECB To Remove ‘Or Lower’ In June Statement; EUR/USD Enroute To 1.13 – NAB NAB FX Strategy Research expects the ECB … “EUR/USD could advance towards 1.13 on the next ECB moves”

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Canadian Dollar Plummets Versus US Peer amid Growing Uncertainty About Trade Outlook

The Canadian dollar weakened against its US counterpart on Tuesday to touch the lowest level in more than a year after stop loss orders were triggered amid broadening losses for the loonie. The Canadian currency came under pressure in recent trading sessions as oil prices continued to fall and uncertainty surrounding the Canadian trade relationships with the United States increased. Crude oil moved below $50.0 to touch the lowest level in five weeks … “Canadian Dollar Plummets Versus US Peer amid Growing Uncertainty About Trade Outlook”

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US Dollar Climbs Against Japanese Yen on Higher Appetite for Risk

The US dollar rose against the Japanese yen on Tuesday to touch its highest level since March 21. The greenback became stronger against the yen as traders’ appetite for risk grew ahead of a Federal Reserve’s meeting that will decide the latest monetary policy move from the central bank. Despite weak manufacturing and inflation data on Monday, investors still believe that the Federal Reserve will likely raise US interest rates … “US Dollar Climbs Against Japanese Yen on Higher Appetite for Risk”

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EUR/USD Trades Sideways on Negative Eurozone Unemployment Data

The EUR/USD currency pair was trading sideways today after the release of disappointing unemployment data from the Eurozone by Eurostat. The currency pair did not decline significantly after the release mainly because of the weaker US dollar as tracked by the US Dollar Index, which struggled to rise above 100.00. The currency pair was trading in a tight range between 1.0900 and 1.0924 during the early European session and was on a downward trend at the time of writing. … “EUR/USD Trades Sideways on Negative Eurozone Unemployment Data”

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Great Britain Pound Meanders After Amazing Manufacturing Report

The Great Britain pound was mixed after a very positive manufacturing report. The currency was flat versus the US dollar, gained on the Japanese yen, but fell against such majors like the euro and the Swiss franc. The most likely reason for the relatively weak performance were Brexit fears. The seasonally adjusted manufacturing Markit/CIPS Purchasing Managers’ Index climbed from 54.2 in March to 57.3 in April — the highest level in three year. The actual … “Great Britain Pound Meanders After Amazing Manufacturing Report”

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Australia Dollar Higher After RBA, Under Pressure from China’ Data

The Australian dollar rallied on Tuesday after the monetary policy meeting of the Reserve Bank of Australia. As of now, the currency has come off the day’s highs, possibly being under pressure from poor economic data from China. The RBA kept its main interest rate at 1.5% and issued a neutral statement, in line with market expectations. The bank said that “forecasts for the Australian economy are little changed.” As usually, RBA Governor Philip … “Australia Dollar Higher After RBA, Under Pressure from China’ Data”

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US Dollar Fluctuates Between Gains and Losses amid Weak Manufacturing PMI

The US dollar had a mixed performance against the euro and the British pound on Monday, as freshly released manufacturing data increased hesitation between traders. An index that measures the strength of the greenback was little changed from yesterday as anticipation grew for upcoming economic releases this week. The Institute for Supply Management published a report on manufacturing activity in the United States. The report stated the ISM manufacturing purchasing managers’ index retreated to 54.8% in April from … “US Dollar Fluctuates Between Gains and Losses amid Weak Manufacturing PMI”

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Great Britain Pound Mixed as Brexit Remains Hot Topic

The Great Britain pound was mixed during Monday’s trading following last week’s strong performance. The currency was flat against the US dollar but gained on the Japanese yen. The sterling remained under pressure from concerns that Brexit negotiations between the United Kingdom and the European Union will not be easy. Indeed, UK Prime Minister Theresa May said:     What this shows, and what some … “Great Britain Pound Mixed as Brexit Remains Hot Topic”

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