The rate of the New Zealand dollar fell when the ruling National Party won the most votes in the last elections, however, without gaining an absolute majority.
Now there is an opportunity to form a coalition. The euro also fell when Germany’s Chancellor Angela Merkel won the election in Germany, remaining for the fourth term, confronted with the problem of parliamentary instability due to the increased popularity of the ultra-right. Continue reading →
Uncertainty of the markets contributed to the indecisiveness of Asian investors, who are waiting for the Fed meeting and clues regarding the future monetary policy of the United States.
The MSCI index rose slightly higher after its fall during the Asian session, as well as the session on Wall Street. DJIA reached its historic high at the close of the fifth session in a row, and the S & P 500 closed the second session in a row at a record high, as the growth of yield on Treasury bonds contributed to the growth of shares in the financial sector. The Japanese Nikkei index, also following the global positive trend, rose 1.2% at the beginning of trading against a weak yen, as the Tokyo Stock Exchange opened today after a holiday weekend. Continue reading →
On Friday at the beginning of trading, foreign exchange market investors behaved cautiously, as today in the US will come out important inflation indicators.
Probably, these data will set the direction for the US dollar for the near future.
By the end of the trading week, the dollar lost its momentum against major currencies, especially against the yen. The Fed decided to slow down the tightening of monetary policy, although investors were counting on it, and this was what supported the currency. The release of economic indicators in the US, including basic inflation, retail sales and industrial production, will give investors a clearer picture of the Fed’s further actions regarding tightening of monetary policy this year. The dollar index remained at around 95.740, nevertheless, there is a probability of the week’s closing at 0.25% lower. Continue reading →
This week will bring a lot of fundamental news that will cause market fluctuations and create excellent trading opportunities for traders. We identified 3 main events of this week:
1. The Reserve Bank of Australia will release their Cash Rate and Rate Statement on Tuesday. The interest rate charged for the transfer of overnight transactions between financial companies, according to preliminary forecasts, will remain unchanged: 1.50%. Such a result is laid in market prices, therefore any surprises will lead to fluctuations in the national currency rate: the rate hike will help the Australian dollar to grow, and the reduction will help it to fall. The decision on the interest rate will indicate the views and concerns of the RBA. Continue reading →