On Tuesday, stocks and indices in Asia rose rapidly: investors are waiting for Yellen’s clues on the future monetary policy of the Fed. Australian stocks fell in price, while Korean and Japanese stocks went up.
The most extensive index of the Asia-Pacific region MSCI rose by several points at the beginning of trading, while the Nikkei rose by 0.1%. The US dollar index is trading at 0.1% higher at around 96,095.
The New Zealand dollar fell in price and traded with negative dynamics after the indicators of the report on public spending disappointed the expectations of the markets. Continue reading →
The dollar exchange rate is recovering from yesterday’s sell-off caused by the announcement of the interest rate: the Fed announced an increase from 1% to 1.25%, as expected. Moreover, 8/16 members of the Fed are counting on a re-increase of 0.25% this year, while 4/16 say a minimum of at least two more increases by the end of the year. The interest of the markets to these publications was minimal, and only after the decisive speech of Yellen the dollar became more active. The value of gold and stock assets fell. Yellen’s mood regarding the US economic performance was surprisingly optimistic, despite the fact that some macroeconomic data came below expectations. Yellen paid a lot of attention to inflation indicators, as she noted that the Fed expects an increase in inflation in the coming months. The growth of inflation will have a positive impact on the US dollar, while a slowdown in its rate may nullify the possibility of a further rate hike this year. 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 →
Shares of Australian companies rose by 1.65%. The increase is quite impressive, if we recall the fall of 2.3% during the previous two sessions. Seoul’s markets were shocked: North Korea tested the intercontinental ballistic missile. The Australian dollar rose 0.1% and traded at $ 0.7666 on the eve of the meeting of the Reserve Bank of Australia. It is expected that the RBA will keep the interest rate unchanged, at 1.5%. The US dollar rose after the June index of activity in the industrial sector came out better than expected. Another positive factor for the US currency is a positive and stable increase in government spending on construction projects in May. Continue reading →
Today is a busy day for traders, as important events will occur immediately in the three leading economies of the world.
In Britain today is the day of parliamentary elections: citizens will come to polling stations to cast their vote for a particular political party. The pound sterling rate will react sensitively to the exit poll results and any news regarding the elections. At the moment, the value of the GBP is a potential victory for the Conservatives, and if the election results are different, that is, the Labor Party will win, the pound’s rate will rapidly fall. If the Conservatives do not win a majority, it will be seen as a bearish pound, as the parties will have to form a coalition, which entails additional political risk as uncertainty grows. Continue reading →
In the week ahead, there are a lot of fundamental news that are looking forward to, events that will give volatility and the numerous trading opportunities that they create. Let’s take a look at our top 3 choices:
1. Tuesday sees that the US issued a building permit. This figure represents the annual number of new residential permits issued in the previous month, which are expected to reach 1.274 million people. This figure is considered as a measure of future construction costs, which has far-reaching implications for the economy as a whole.Better than expected, the issue is likely to lead to the strengthening of the US dollar, since this figure implies that the increase in spending is on the horizon. Continue reading →
The GBPUSD rate fell yesterday despite strong bull attempts to counter this. The pair fell below 1.2800 against the background of the latest results of the YOUGOV poll, which indicates a decline in the popularity of the conservative party. Now they occupy only 16 seats, and it’s not enough for the majority. The results of the surveys may be erroneous, so traders will continue to closely monitor the situation, and the pound rate falls against the background of growing uncertainty in the markets.
Next, we will see key data publications out of Canada and the US.
In Canada, GDP will come out m/m, and this publication can radically change the trend of trading in Canadian markets, given the weakness of the national currency due to the cheapening of oil in recent times. Continue reading →
Last week, trading was fairly dynamic, the dollar recovered and traded in the green zone after the bulls overcame the resistance. On the first day of the new week there will be 3 key data releases in the US, the EU and Canada.
In Canada, there are data of the trade sector, which tends to have a tremendous impact on the value of the national currency: the more the country’s exports, the higher the demand for the currency needed to pay for goods. Conversely, the more a country imports goods, the greater the supply of the national currency, it is necessary to pay for imports. Index of current accounts will reflect the change in the value of imports and exports, therefore, if it comes out higher than expected, the Canadian dollar will grow due to increased demand for the currency. If the report falls below expectations, the Canadian dollar will fall due to the increased supply of currency. Continue reading →
The week ahead has many a fundamental news release and events to look forward to, and the numerous trading opportunities they create. Let us take a look at our top 3 picks:
1. Tuesday is considering the release of the inflation report in the UK, which will outline the views of the Bank of England on the current state of inflation and growth in the UK economy. The stock indices of GBP and UK are volatile during the publication of the report, which, if it is significant enough, will lead to a long-term asset movement. If the report shows that the UK economy is growing and inflation is at least stable to growth, we will see a positive impact on the pound, while the report that the UK economy is cooling will lead to a pound sale.
US stocks were again hit hard yesterday, when Wall Street experienced the worst day in the past 8 months amid political turmoil in the United States. We are seeing the so-called Trump deal, in which the shares and the US dollar were raised for months on Trump’s promise to be good for business, and also promised to take a less rigid stance towards banks. The bullish slump has disappeared, and we are seeing profit taking on recent moves that have shown record highs. The reason for doubt is the recent accusation and subsequently the creation of an independent supervisory board to examine allegations that Trump and / or the Trump administration have colluded with Russia in rigging elections in the United States. Former FBI director Robert Mueller was named special prosecutor of the Russian court, and the market expects that tax and other reforms will give way, as the White House is coping with it. Shares will remain under pressure, as traders are cautious, quickly drop stocks if political instability worsens.