News Update for Currency Pairs

Mario Draghi is at it again!!

Immediately after a short remark from ECB president Mario Draghi, the EUR took a full U-Turn on Thursday starting from 1.10 to 1.08. It later reverse to 1.10. The European bond yields also took a small drop down and increased again. All this rush and hush was a result of Just one Statement made by Draghi, as he stated that “He does not look forward to further interest rate cuts”. Expectedly, there was a rush to cover shorts due to the fact that the ECB president is sure that interest rates will remain low for a long time.

Could this be a Communication Error? Well, time will tell.

The EUR rose to 1.08 against the dollar for a while and increased further to 1.12. And against the Yen, the EUR was aggressively 126.33 higher. These are significant increase and a powerful display by the EUR. However, when all settles down, we should expect the EUR to go lower because the Market Direction before today’s meeting was far less bearish for the EUR.

 

The dollar staggers but unable to regain feet.

On Friday, the dollar gains against 4 major currencies and many traders deviated from entering short positions. For two straight weeks the dollar has been down following the Feds indecision.
For the Dollar index was up to 0.34% when it was measured against 6 major currencies. It is still down by 1% for more than 14 days. Among the currencies it rose against on Friday is the JPY (by 0.16%).

Who benefits from this Weak Dollar? It is no other than traders dealing in Oil, Metals and Coffee This is because the weak state of the USD lowers the price of these commodities. Although the U.S economy is sure to bounce back, we are sure that the dollar is toothless for now.

 

Yen Subdues Euro, Dollar and other currencies.

This Monday, the Yen, usually called a Safe-haven came stronger against the Aussie and its New Zealand Peer. Consequently, the U.S dollar and Euro shed 0.2% to 111.35 and 125.59 Yen accordingly. For a certainty the moods are down as Asian share markets lowers.
Aussie and Kiwi lost 0.6% and 0.4% to Yen respectively.

 

Dollar regains Feet as it reacts to the Dovish Fed

Monday was a day of positivity for the dollar as it bounce back from a 1% loss that persisted for three straight weeks. The dollar’s upward movement started from Friday, which was prompted by the statements from Chair Yellen and the reduction of interest rates by the FED.
Now the dollar is strong and ready to dominate its enemies. It turned positive against the Yen at about 0.23% increase. Even the EUR depreciated 0.2% against the dollar to $1.1251. Investors are surely looking to rethink their decision made on Thursday last week.

 

EURUSD trading low under pressure

For the past few days, EURUSD has been trading under selling pressure as it was last seen at 1.1170. According to analysts, there is likely to be further declines for this Thursday.

For four straight days the EURUSD has shown steady decline despite its gain during the FED speech. From the 4 hour chart, we could see that the technical indicators show a strong bearish slope within bearish territory. This gives strong indication that there will be further decline on Thursday. It is likely heading down the 1.1085 level.

 

The Dollar drops after soft U.S data release.


The dollar index, which measures the greenback against a basket of six major currencies, eased from an early 1-1/2-week high of 96.399 to a session low of 95.850 after the Commerce Department said consumer spending edged up 0.1 percent and the January reading was downwardly revised to 0.1 percent.

The U.S. dollar eased against a basket of major currencies on Monday after U.S. data showing retreating inflation and a downward revision to consumer spending dampened expectations for a swifter pace of Federal Reserve interest rate increases.
The data also showed U.S. inflation moderated last month, with a price index for consumer spending dipping 0.1 percent after nudging up 0.1 percent in January.

The EURO gained against the dollar to $1.1215, its highest level since March 23. The data dampened expectations that the Fed would hike rates again in April or June after hawkish remarks from multiple Fed presidents last week raised expectations for a faster pace of rate increases.

"Today's report certainly raises the question of whether the Fed can pull the trigger in June," said Kathy Lien, managing director at BK Asset Management in New York, in reference to the U.S. data.

Low trading volumes likely contributed to price activity since European markets were closed for the Easter Monday holiday, analysts said. Analysts also said traders were awaiting comments from Fed Chair Janet Yellen on Tuesday,
The weak data was enough to crimp the dollar index's rally of more than 1 percent last week.

 

Dollar lost some muscles after Janet Yellen’s speech

Just when we thought the Fed is warming up to unleash the April Hike, Yellen’s tone left us in suspense. Indeed, the awaited speech by the Fed’s Chair Janet Yellen ended yesterday. Her cautious tone made the dollar bulls to retreat and be on the defensive. Everyone is wondering whether there will even be a hike this year.

Speaking to the Economic club in New York, Janet Yellen highlighted the need to be cautious. She stressed that raising interest rates could be damaging to the U.S economy and could bring about low oil prices and impede growth in foreign affairs.

The Dollar index reacted sharply to her statement as it hits a 0.8% low in just one day. Now it is languishing near 95.089. The dollar lost ground against other currencies like the Yen and Euro. How quickly it recoils from a two weeks high against the Yen after just one fierce statement from the Fed.
Find out what is more to come…

 

The dollar struggle continues as US jobs report fail to convince Federal Reserve


The dollar did not make much gain today. This was because job reports from the US weren't really convincing enough to raise hopes that the Federal Reserve would still be increasing interest rates this 2016. Unemployment rate had risen to 5.0%.

Reports also showed that there was an increase in the US non-farm payrolls by 215,000 for March which was a little bit above general expectations. Average hourly earnings were also on the increase after we had seen it drop two months ago.

The dollar dropped down to 111.45 yen following a sharp drop coming down to 111.32. This is without doubt the least we have seen for the pair since almost two weeks now.

Data coming from Bank of Japan's survey revealed that there was a drop in the long term inflation hopes for Japanese companies for the month of March as compared to January. This suggested that the decision reached by the central bank of Japan to take on negative interest rates didn't succeed at raising hopes that the speed of price rises would increase over time.

 

The Dollar suffers a major blow after Statement from Japanese Prime Minister

The American dollar was in a region on Wednesday of 17-month low. This was the consequence of statements from the Japanese Prime Minister Shinzo Abe which raised indications that the country weren't very open to the prospects of cutting on the growth of the Japanese yen. In a statement to the Wall Street Journal, the prime minister voiced his opinion that nations should forsake the path of deliberately reducing the strength of their currencies with "arbitrary intervention."

The yen rose steadily in face of uncertainty in the global markets. This was majorly because of the yen being a safe-haven asset while being boosted by the delay of the Federal Reserve to officially introduce interest rate hike as many in the market were expecting.

Supported by the drop of the dollar against the Japanese yen, the euro gathered strength to avoid a drop against the American dollar thus overcoming disappointing European data. There was data from Germany factory orders saw a fall amidst a start from the Eurozone which wasn't as fast as expected for the beginning quarter.

 

Surprising that a strong dollar is still losing against yen

Following a week of impressive gains, the yen suffered a setback after the prospects of intervention coming from the Japan's finance minister. The drop in the yen was also caused by stock market recording gains.

On Thursday, the yen had increased by almost 2%as against the USD. Taro Aso the Japanese minster of finance gave warnings that Japan weren't too comfortable with the quick changes in yen. He described the situation as "one-sided". Further more, he revealed that they could take measures to check the situation.

These were the same indications Japan gave prior to initiating the intervention which triggered the climb of the Japanese yen against the American dollar to 17-month highs. This climb had done a lot in convincing investors that major moves wouldn't be coming from Japan till the G20 meetings in Washington which will hold next week.

As morning on Friday, the yen had dropped as much as 0.4% coming to 108.75 yen for 1 USD which brings it close to 10% measuring it with the beginning of the year.

 

Critical warnings coming from Tokyo on the strength of the Japanese yen

The Japanese yen was pulled down from its high of 17-month this Monday. This was the result of gains recorded in the stock market for Europe as officials from Japan released warnings. These warnings raised indications that the country would make deliberate intervention as regards the "one-sided" rally of the Japanese yen.

Yoshihide Suga who occupies the position of Chief Cabinet Secretary said investors in the market shouldn't misinterpret the agreement of the Group of 20 to keep off competitive devaluation of the Japanese yen. ( The Group of 20' here pertaining to the G-20 international forum comprising of central banks and governors of the 20 biggest economies in the world.) Saying that despite the agreement, Japan could still intervene against the moves of the Japanese yen. Statements like this in past had triggered intervention.

The demand for the yen being a safe-haven asset has not dropped among investors yet in face of uncertainty in the global stocks market. This Monday, there were quite on a rise following gains from China during Asian time.

 

Dollar is now getting its vibe back as commodities rise

The American dollar is making a small comeback from seven-month low which it slid down to major currencies. This seeming recovery for the dollar in the Forex market is majorly as a result of increase in oil prices. This increase in oil prices have created a situation whereby investors are now attracted to commodities with higher yields and even higher risks. General interest in safe-haven assets like the Japanese yen were dropping down owing to climbing oil prices.

Currencies well connected to commodities like the Canadian and Australian dollar have really been boosted by the increase in oil prices. But then for the American dollar, much about its future is very connected to what investors are looking to in their expectations of interest rates. Whether they are hoping it would rise or drop.

Before now the American dollar has been really down for an amount of time running into weeks now. Many investors are no longer expecting the Federal Reserve to increase interest rates this April anymore.

 

Dollar still on a rise as Federal Reserve disappointment calms down

The American dollar had risen up again this Thursday. This rise can be rightly seen as the biggest gain it has recorded for a day in over four weeks now. A growing risk sentiment had led investors to cutting down their interest in the yen and other currencies with a low yield like the euro.

The American dollar had made further gains even against the Singapore dollar. This was a consequence of a policy of easing adopted by the central bank of Singapore. This policy was not really expected in face of improved stocks in Asia.

The euro came down dropping to $1.1282 which is a a distance below $1.1465. $1.1465 was a 6-month high the euro had reached two days ago. Against the yen, the dollar maintained a flat position of 109.34 after the dollar had recovered from 17- month low against the yen some days back.

Data on consumer prices for the month from the United States came out below expectations as this suggested that the Federal Reserve are more unlikely to raise interest rates soonest.

 

Yen weakens as commodity currencies strengthen

The New Zealand dollar and other commodity currencies had moved up against the American dollar even touching ten-months high against the American dollar. This is as oil prices recover briefly from a fall as investors once again looked to riskier assets.

Owing to the attraction of investors to high yielding assets, the yen being a low-risk safe haven dropped. Thus the American dollar climbed up to 109.31 yen which marks an increase of about 0.30%. This was after the American dollar pulled back from 107.75 yen it had fallen to yesterday.

The euro itself supported by mixed German ZEW survey had also recorded gains against the Japanese yen. The euro moved up to 124.29 yen which is about a climb of 0.50%.

There is yet caution on the part of investors as they are skeptical about the yen recoding more gains given that Haruhiko Kuroda, governor of bank of Japan had already announced Japan could embark on an intervention should the yen continue posting gains.

 

Commodities currencies diving down as Kuwait oil workers' strike ends

The Australia dollar and the Canadian dollar and a host of other commodity related currencies were on a fall. The Australian dollar particularly has withdrawn from the highs it had climbed to on early Wednesday. This situation of commodity based currencies falling arose from the resumption of Kuwait oil workers. This put a halt to the strike which was already in its third day.

Investors are now turning their head back to yen for more security as a safe-haven with global stocks also sliding. This has made the yen recover from the weakness it had for almost two days now, thus climbing today against the American dollar to post gains of about 0.5%.

The EURUSD didn't see much changes, as it was relatively steady around the region of 1.1370. A good number of investors were already looking towards the meeting of the European Central Bank (ECB) to hold tomorrow. Thus UK jobs data would be important as investors look to see if wage growth level could increase enough to cause worries of inflation on the Bank of England to increase interest rates.

 

Yen shrinks sags against the dollar on talk of weight of likely intervention

The yen went down further down today, dropping heavily to lows of two weeks. This is as there is rising concern among investors that the Bank of Japan would not be reluctant to introduce more stimulus measures.

So far since this year started, the yen has made massive gains after it had risen so notably in a run of over five months. This has been against the moves from Japan authorities to deliberately weaken the yen as the US closely washing the movement of the yen in the market.

Today, the American dollar had moved on to 108.94 marking a climb of the dollar to 108.94 this afternoon. The bank of Japan has for long been weighing up move to interfere in the movement of the yen.

 

Intervention threats from Japan sends Yen riding down the hill

The yen went down on Monday as investors grew more attracted to riskier assets with increases in oil prices. The yen was majorly affected as Japan once again signaled its willingness to intervene in the market should the yen still rise aggressively. Gains from oil which were as high as 3% had driven investors from safe haven assets like yen.

The dollar which measures how well the yen is performing went down by over 0.14% falling to 94.47. This was after it had previously posted two gains . This fall was partly a result of data coming from the New York Empire State survey which came lesser than expected.

In course of the day, the American dollar had gone up to 108.90 yen which is about a leap of 0.29% against the Japanese yen. The dollar looks to continue its good run against the yen as it has been moving up against the yen since the month started by over 3%.

 

Rising dollar polished by US Treasury yield gains

The US dollar had risen up today against the euro to highs of about three weeks. The rise in dollars follows an increase in US Treasury yields in face of increasing possibility that the federal reserve may push up interest rates.

The rise in US treasury yields had made the dollar much more attractive to investors on Wednesday. This move up on the dollar was followed with a decline in the euro. The euro thus fell down to about $1.1257. For almost three weeks now, the euro has not fallen so low.


Statements coming from federal reserve officials had indicated that we may still be having more than one interest rate hike this year. Robert Kaplan who is the Dallas Fed President said he would push for an interest rate hike in the next meetings of the Federal Reserve while John Williams who is San Francisco Fed President had expressed his anticipations that the Fed could still raise interest rates twice or even three times in 2016.

 

Dollar up slightly vs euro, franc after mixed Fed messages

The U.S. dollar rose slightly against the euro and Swiss franc on Thursday after the president of the New York Federal Reserve said the central bank was on track for a rate hike in June or July, but the greenback slipped against the safe-haven yen on risk aversion.
The EUR was last down 0.2 percent against the dollar at $1.12 after the comment from William Dudley, who also said there was a strong sense among Fed policymakers that markets were underestimating the probability of monetary policy tightening.

The U.S. dollar rose slightly against the euro and Swiss franc on Thursday after the president of the New York Federal Reserve said the central bank was on track for a rate hike in June or July, but the greenback slipped against the safe-haven yen on risk aversion.
The EUR was last down 0.2 percent against the dollar at $1.12 after the comment from William Dudley, who also said there was a strong sense among Fed policymakers that markets were underestimating the probability of monetary policy tightening.
While the dollar gained against the euro and Swiss franc on Dudley's remarks, it remained below multi-week highs touched earlier given comments from Fed Vice Chairman Stanley Fischer that disappointed investors a day after minutes from the Fed's April meeting signaled a June hike was firmly on the table.

 

Ailing yen takes more punches from the dollar

The U.S. dollar went up to its peak level in about twenty one days against the yen on Friday. This was as hopes went up again that the Federal Reserve would be raising interest rates this June. Against the euro, the dollar didn't change much.

Thus today we saw the dollar hitting 110.58 yen. This happens to be the best the dollar had risen against the yen since April 28. Minutes of meeting from the Federal Reserve released on Wednesday indicated a June rate was yet possible.

On the part of the yen, the chances are high that the G7 (group of the seven biggest economies in the world) meeting in Sendai, Japan this weekend, would frown at any move by Japan to devalue the yen.

The euro looks set for its third consecutive weekly decline against the American dollar and then dollar is well positioned for its third consecutive weekly gain against the Japanese yen.