BOC Preview: Covid concerns set to outweigh recovery optimism and crush CAD

The Bank of Canada is set to leave rates unchanged in its October meeting.  Governor Macklem will likely stress growing uncertainty due to coronavirus. Canada’s recent upbeat performance may remain a side story. Winter comes early in Canada – the mercury drops rapidly in the northern country and COVID-19 cases are rising. As the same phenomenon is … “BOC Preview: Covid concerns set to outweigh recovery optimism and crush CAD”

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Chinese Yuan Retreats From 27-Month High as Officials Tolerate Currency’s Appreciation

The Chinese yuan is retreating from its highest level against the US dollar in 27 months, despite officials revealing they will tolerate the currency’s appreciation against the greenback – for now. The acceptance of the yuan’s enormous climb has signaled that policymakers are prepared to potentially alter the currency’s strategy in the global economy, fueling its aspirations to make the yuan a global reserve currency that rivals the buck and other counterparts. Wang … “Chinese Yuan Retreats From 27-Month High as Officials Tolerate Currency’s Appreciation”

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Japanese Yen Mixed During Monday’s Quiet Trading

The Japanese yen was mixed today, rising against some peers and falling against others. Generally, though, the yen did not move far as trading was rather quiet on Monday. The Bank of Japan will hold a monetary policy meeting on Thursday. The general consensus among analysts is that the central bank will leave its monetary policy unchanged, though some of them speculate that the bank may downgrade its … “Japanese Yen Mixed During Monday’s Quiet Trading”

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For How Long Are the Bulls Going to Wait for 0.7320 on AUD/USD?

The Australian versus the United States dollar currency pair is making lower highs, but the bulls may be just around the corner. Long-term perspective The rise in which the Australian dollar finds itself since the middle of March extended until the 07413 high. As can be seen, from the 0.6873 intermediary level, the appreciation lost part of its steam. Nevertheless, two important levels were conquered: 0.7010 and 0.7191. However, the next … “For How Long Are the Bulls Going to Wait for 0.7320 on AUD/USD?”

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Gold (mostly) hinges on Trump´s electoral chances

Gold has been battling the $1,900 level amid fiscal stimulus speculation. Pre-election polls and US GDP stand out in the upcoming week. Late October’s daily chart is showing a triangle pattern. The FX Poll is painting a decisively bullish picture. “Putting pen to paper” – such commentary from Washington about a fiscal stimulus deal has … “Gold (mostly) hinges on Trump´s electoral chances”

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EUR/USD Ends Week Higher

EUR/USD ended the week with solid gains. The US dollar was the weakest major currency on the Forex market during the week. The euro, on the other hand, was one of the strongest, ending trading either flat or higher against its most-traded rivals. Market analysts explained the weakness of the dollar and the resulting strength of the euro for the most part by hopes for fiscal stimulus in the United States. But most analysts express strong doubts about the ability of US … “EUR/USD Ends Week Higher”

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Turkish Lira Tests Fresh Record Low of 7.9 As Central Bank Leaves Rates Unchanged

The Turkish lira tested a fresh record low of 7.9 to close out the trading week, one day after the central bank surprised analysts and left interest rates unchanged. The lira has repeatedly been cratering to new all-time lows throughout 2020, driven by declining foreign exchange reserves and geopolitical tensions. Could the lira break 8.0 against the US dollar in the coming weeks? On Thursday, the central bank announced that it would … “Turkish Lira Tests Fresh Record Low of 7.9 As Central Bank Leaves Rates Unchanged”

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Japanese Yen Soft After Economic Data, Japan-UK Trade Agreement

The Japanese yen was trading either flat or lower against most other currencies, though it managed to gain on the US dollar. Japanese macroeconomic data released on Friday was mixed. The big news today was the fact that Japan and the United Kingdom formally signed a trade deal that has been agreed in principle back in September. It is the first post-Brexit trade deal the UK signed. Yet many economists … “Japanese Yen Soft After Economic Data, Japan-UK Trade Agreement”

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104.34 Low on USD/JPY a Double-Edged Sword?

The United States dollar versus the Japanese yen currency pair, at this moment, may very well be treasured by both bulls and bears. However, only one party is to be right. Long-term perspective The fall from the 111.71 high extended — in a first phase — until the 105.98 low, from where a new appreciation crystalized, pinning the 109.85 high. The fall from 109.85 continued the endeavor of the first one thus — after defining … “104.34 Low on USD/JPY a Double-Edged Sword?”

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US Dollar Struggles for Direction As New Jobless Claims Fall Below 800k

The US dollar is looking for direction on Thursday as initial jobless claims and the Congress unable to strike a coronavirus stimulus and relief deal. The greenback has been trending downward this month following a rally in September, driven primarily by confidence in the broader financial market and optimism over the on-again, off-again stimulus negotiations. According to the Department of Labor, the number of Americans filing for unemployment benefits clocked in at 787,000 for the week ending October 17, down from the previous … “US Dollar Struggles for Direction As New Jobless Claims Fall Below 800k”

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