Category: Forex News

Dollar boosted by Yellen’s statement

Good morning. The US dollar remains strong this morning after yesterday’s FOMC policy meeting. Chairman Yellen and company released a carefully worded statement that is resonating with dollar bulls for some minor tweaks made towards labor and inflation outlooks. In the minutes following the 2pm release, volatility was extreme as the greenback was sold hard, but as the market digested the statement, its more hawkish tone won the day, pushing the dollar to its best levels in one week. The more hawkish tone really puts today’s Q2 GDP release under the spotlight, as these economic results seem to be what is shaping the Fed’s decision points. Meanwhile in Europe, stronger than expected economic and business confidence measures were not enough to buoy the euro as the single currency continues to trade heavy this morning, below key psychological levels.

European bourses are another sea of green today following a number of positive economic releases overnight. While yesterday’s Fed statement continues to pace markets, some relative optimism has settled over mainland Europe with everything from German employment to Swedish GDP besting the market’s estimates on Thursday. Unfortunately, the euro cannot reflect this optimism as it remains a sell on rallies versus the US dollar. Tomorrow, Eurozone inflation and unemployment figures finish off this week’s data releases, coinciding with German retail sales, which should garner some attention. The Shanghai Composite was down another 2% today, weighing on Asia-Pac currencies. The Australian dollar lost a bit more ground as second quarter export prices fell 4.4%, more than expected.

Read the rest of the article Dollar boosted by Yellen’s statement
Markets await FOMC statement

Markets await FOMC statement

Good morning. As is usually the case of Fed Wednesdays, markets have quieted down and traded within a tight range only a few hours ahead of the FOMC statement. Both overnight markets saw a bit of data but it was largely ignored, looking ahead to today’s Fed statement. Chinese stocks rebounded a bit late in [&hellip

Chinese stock market continues its collapse

Chinese stock market continues its collapse

The rollercoaster that is the Chinese stock market failed to disappoint overnight, with another whipsaw session surely having local traders reaching for Pepto-Bismol or other medication used to battle nausea.  After opening with another collapse that saw the Shanghai Composite shed an additional 5% of its value, buying interest emerged and the index managed to [&hellip

Parliamentary victory for Tsipras

Parliamentary victory for Tsipras

The euro is “strong like bull” on Thursday as Greek Prime Minister Tsipras had another victory overnight. Late Wednesday, Greek Parliament passed a second package of reforms that was required to start talks on the financial rescue agreement. Passing with the backing of 230 of 300 Senate votes, this latest parliamentary victory for the capitulating [&hellip

Equities under pressure

Much like the selloff in gold bullion that commenced earlier in the week, equities have now found themselves under pressure as a series of weak earnings reports has global capital markets in a decidedly risk off mood.  Starting in Asia, Chinese consumer confidence hit a 19 month low while business sentiment slid to a six [&hellip

Bullard sees high odds for a rate hike in September

Bullard sees high odds for a rate hike in September

The consolidative forces spurred by a lack of economic news flow have continued from yesterday, while the commodity rout has eased as a result of weakness in the greenback.  Although the dollar-linked DXY index is trading heavy this morning, the general tone towards the big dollar as of late has been constructive for the bulls, [&hellip

A quiet day

A quiet day

With a lack of fresh incentives to drive price action, financial markets have begun the new trading week within recent ranges and are in consolidation mode.  The greenback is finding a more pronounced offer side to its book, despite the overnight slide in commodities that resulted from what could be considered a flash crash in [&hellip

5 Reasons Why EUR/USD Shorts Are Attractive Again – BNPP

5 Reasons Why EUR/USD Shorts Are Attractive Again – BNPP

As a new week is about to begin, many ask: can the euro continue falling? The team at BNP Paribas provides a clear answer and lists 5 reasons for this: Here is their view, courtesy of eFXnews: In its weekly FX note to clients today, BNP Paribas discusses why EUR/USD short positions are attractive again particularly from [&hellip

USD/CAD peeks above 1.30 following strong US data

USD/CAD peeks above 1.30 following strong US data

The Canadian dollar reached another low, with Dollar/CAD breaking the very round level. This came after US housing data beat expectations. The US dollar is on the rise across the board and it finds a vulnerable C$. A confirmation for the breakout is still needed. The high is 1.3006 and the pair immediately dropped just [&hellip

US housing data beats – USD rises

US housing data beats – USD rises

Housing figures beat expectations with 1.174 million in housing starts from an upwards revised 1.069 in May and 1.343 million in building permits. Inflation figures came out exactly as expected. The US dollar is a bit higher after the release. Update: the gains are intensifying. The US released inflation and housing figures for June. In general, things [&hellip

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