News Update for Currency Pairs

Dollar revives from its losses as US data supports rate hike

The dollar continued its rise up today. The fresh rise comes as there was an increase in U.S. existing home sales for the month of October. This positive data raised hopes that there could be Federal Reserve interest rate hike by this December. So far traders are heavily anticipating this next interest rates by the end of the year. With encouraging US data so far, this is becoming very possible.

On Monday, the dollar sold off on a slight note with investors trying to make the best of the holiday-shortened week so as to square positions, booking gains on the U.S. dollars which has been enjoying almost two weeks of continuous gains. Within this interval, the dollar index has increased by almost 5% on hopes that Donald Trump who is the victorious U.S. President-elect, would increase fiscal spending. This would in turn move up inflation increasing interest rates.

Data on Tuesday has revealed that the U.S. home resales increased by 2% last month by an annual rate of 5.6 million units. This is the most improvement it has recorded in over than 9-1/2 years. This has pushed up the dollar to session highs against the Japanese yen.

 

Dollar pushes up to its best level since March 2003 following bright US economic data

The dollar had pushed up to its best in over 13-years. The significant increase comes as a result of impressive U.S. economic data which had revealed that the US economy was well in line for steady growth. This again confirmed the hopes of traders that the Federal Reserve may eventually raise up interest rates by the end of this year.

The dollar equally recorded notable gains against the Japanese yen, moving up to a high of over seven months, and then rose up against the euro to its best since early December.

US data revealed a rebound of 0.4% in U.S. durable goods orders for the month of October. This comes after the same macroeconomic indicator had shown a decline for the month of September. On the other hand, China's offshore yuan, suffered a slip of 0.5% on the day dropping down to a record low of 6.9470 per dollar. This is as traders are more excited with the strengthening U.S. currency as well as of indications of increasing capital outflows in the aftermath of Trump's unexpected electoral victory.

 

Tired Dollar drops down after long run of gains with falling US yields

The dollar finally drops down today after an extended run of gains in the previous days. This decline suffered pulled the dollar away from its high of over 14 years with US yields also falling down. After a long stretch of increase, the dollar index is finally falling down as it lost 0.7% to drop down to 100.77. This is sort of an extension to the losses the dollar index had earlier on suffered last week. Just last week, the dollar index had spiked rising above 102.00. That was actually its best performance in over thirteen years.

The dollar thus dropped a little bit following the decision of traders to take proper advantage of a drop in U.S. bond yields in consolidating profits.The 10-year Treasury note yield went further in its decline today falling to 2.326 following a rise of 2.417% which had brought it up to a 16-month high last week Thursday.

As such the U.S. Dollar early today went down by 1.3% against the yen dropping down to 111.650 yen when just last week, the dollar had risen to an 8-month high against the Japanese yen at 113.900. On the other hand, the euro rose up by 0.9% $1.0667.

 

US dollar regaining stability with increasing OPEC fears

The dollar pushed up today following its struggles on Monday. The increase in the dollar comes as traders are already expecting currencies to show increased volatility within the next three weeks which could be carrying higher risks for currency traders.

There is high expectations among analysts that the US dollar would make more gains next year when Donald Trump assumes office as US president. Analysts are predicting that the policies that Trump would be embarking on would push up inflation giving the American economy stronger fiscal boost.

Another major concern attracting the attention of traders is the upcoming Italian referendum that would be holding this weekend on Sunday. This is strongly related to the euro as fears have been increasing over the health of Italy's banking system with upcoming vote in the referendum. This could lead to the departure of Italian Prime Minister Matteo Renzi eventually leading to the failure of his intentions to refloat Italian banks.

The dollar so far has recorded a gain of 0.5% gain against the yen rising to 112.98 yen.

 

Dollar pushes up to a high of over 8 months against yen


The U.S. dollar had risen up to its best level against the Japanese yen in over eight months today. The dollar also made gains against the Swiss franc as well as the euro following an increase in oil prices which boosted U.S. Treasury yields. From the side of economic data, vibrant private payrolls data had increased hopes that the Federal Reserve may introduce interest rates this year or early next year.

The dollar went up by about 1.7% against the Japanese yen moving up to 114.43 yen. This would be its best since the beginning of March. The euro went down by over 0.8% against the dollar as it dragged down to session lows of $1.0554. This comes after U.S. crude prices had increased by over 8.5% as some of the world's biggest oil producers finally reached an agreement to reduce oil output. This would be the first time this is happening since far back 2008.

The American dollar also rose to about a 10-month high against the Swiss franc pulling up at 1.0204 francs. The dollar index on the other hand which is responsible for measuring the US dollar against its major currencies had gone up by 0.5% jumping up to 101.52.

 

Dollar drops pace after disappointing U.S. jobs data The dollar dropped down largely today, the decline coming after the dollar had recorded gains across the previous three weeks. U.S. non-farm payrolls report were unimpressive when published. This raising fears among investors of how well the possibility of increasing interest rates by early 2017. Going by predictions from analysts, the weakness of the US dollar will be temporary. The decline in the dollar was becoming unavoidable following a long run of gains after the shocking victory of Donald Trump in the U.S. presidential election which was conducted in Nov. 8. The dollar index also recorded a weekly decline. This will be the first time the dollar index would be suffering a weekly fall in a month. Despite the slight decline the dollar index was yet 1.7 percent% up for this year. The U.S. currency had declined against the yen, dropping down to session lows following the jobs data release. Published Nonfarm payrolls the month of November showed the addition of178,000 jobs. Wage growth for last month was simply 2.5%, this was disappointing considering that a lot of us having been expecting it to come out at 2.8%.

 

Dollar drops pace after disappointing U.S. jobs data

The dollar dropped down largely today, the decline coming after the dollar had recorded gains across the previous three weeks. U.S. non-farm payrolls report were unimpressive when published. This raising fears among investors of how well the possibility of increasing interest rates by early 2017.

Going by predictions from analysts, the weakness of the US dollar will be temporary. The decline in the dollar was becoming unavoidable following a long run of gains after the shocking victory of Donald Trump in the U.S. presidential election which was conducted in Nov. 8.

The dollar index also recorded a weekly decline. This will be the first time the dollar index would be suffering a weekly fall in a month. Despite the slight decline the dollar index was yet 1.7 percent% up for this year. The U.S. currency had declined against the yen, dropping down to session lows following the jobs data release.

Published Nonfarm payrolls the month of November showed the addition of178,000 jobs. Wage growth for last month was simply 2.5%, this was disappointing considering that a lot of us having been expecting it to come out at 2.8%.

 

Euro records gains with the Italian PM losing in referendum vote

The euro pulled back from the losses it recorded against the U.S dollar earlier today following the loss of Italian Prime Minister Matteo Renzi in a referendum pertaining to constitutional reforms. This is not too shocking however as traders were looking forward to this loss. So far Renzi looks set to embark on a resignation following the referendum loss. The weight of the "No" vote, at 59.1% was well bigger than what analysts were predicting.

This loss has the possibility of triggering early election by 2017 with the anti-euro 5-Star Movement getting more traction. Should the resignation kick on, it is likely that a caretaker government will be installed preceding the conduction of the elections in 2 years time.

The euro thus fell down notably by as 1.4% in Asian trade dropping down to $1.0719. This will be the worst the euro had fallen since as far back as March last year. Later it went on to push up to $1.0785, amounting to 1.08% today. The greenback equally dropped down dropping to 2-1/2 week lows against its major currencies today with traders expecting an imminent end to the strength of the dollar.

 

Euro drops down from three week highs as traders anticipate ECB meeting

The euro struggled to stay in the region of its three week highs against the greenback. This follows an impressive performance of the single currency on Monday with the euro making a commendable pull back from its stretch of losses the euro has suffered against its rivals. So far, traders have been heavily looking forward to a much expected European Central Bank (ECB) meeting on Thursday.

Just on monday here, the euro recorded good gains following the referendum loss of Italian Prime Minister Matteo Renzi pertaining to a constitutional reform, this already anticipated by traders.

Investors are now looking forward to the chances that the ECB (European Central Bank) could adopt a more hawkish approach. A lot of traders already suggest that the ECB would still pursue their its bond purchase program. On the other hand the dollar is enjoying a nice run of form following the shocking victory of Donald Trump in the U.S. Presidential elections.

The Australian dollar had dropped down to $0.7454, getting down by 0.24%. This comes after the bank chose the path of caution in keeping interest rates on hold.

 

Euro pushes up closer to 3-week high as attention shifts to ECB meeting

The euro pushed up rising to trade close to a three-week high against the American dollar today. The impressive gains in the euro come as traders look heavily to the meeting of the European Central Bank official today as they decide upon a policy decision. So far dollar is losing strength with the previous drop in U.S. bond yields. In the market for some time now, the euro has been the centre of attraction following the offer of resignation by the Italian Prime Minister Matteo Renzi after a humiliating loss in a referendum to reform the constitution.

The euro instantaneously reacted to the news by dropping but has since pulled back from its losses, running up to three week highs against the US dollar. Traders are expecting the ECB to announce an extension to its quantitative easing program which could last up to a further six months.

The euro thus made gains of 0.2% early today rising to $1.0776, this is not far from the peak it reached against the dollars at $1.0797. This was its best performance against the dollar since Nov. 15.

 

Euro loses strength following ECB's decision to extend bond purchase


The euro lost more than a percent today following the decision of the European Central Bank to still push forward their asset purchases till the finishing phases of 2017. President of the ECB, the person of Mario Draghi had announced that cuts to the size of the program should not be interpreted wrongly as the program nearing its end.

The ECB released announcement that it will introduce a slash to its plan of purchasing assets by 60 billion euros beginning from April 2017, down from the 80 billion euros it operates at present. The ECB also said it was possible for it to officially embark on increasing the quantity of its purchases in the future.

The euro earlier on was doing impressively before the announcements from the ECB. It had reached a peak of $1.0875 in the first minute following the statement after which it dropped down falling to $1.0617, this marks a decline of 1.26% for the day.

The dollar index on the other hand had recorded a gain of 0.90% pushing up to 101.13. As against the Japanese yen , the US dollar had jumped up by 0.38% to reach 114.18.

 

Dollar pulls back upon gains of euro as traders look to upcoming Fed statement

The U.S. dollar suffered a decline against its major rivals as traders heavily look forward to the upcoming statement of the Federal Reserve. This will go a long way in giving traders an idea of when they would be having the next interest rates hike.

Expectations are very high that the US Federal Reserve may officially announce increased interest rates. So far this year, we have not had any interest rate hike. If done this would the second time the US Central Bank is increasing interest rates since the global financial crisis.

Should any increase be made to interest rates, this is expected to lengthen the rally in the dollar which has been on the uprise since Donald Trump surprised the whole world with a victory in US Presidential elections. A large part of the gains in the dollar however come courtesy of impressive U.S. Treasury yields with hopes that polices of Trump would push up inflation. The euro had up by about 0.7% against the dollar, pushing up to $1.0625.

 

Dollar gets steadier with US Federal Reserve stealing the show

The U.S. dollar maintained its stability against its major rivals today. The dollar was impressively stable despite worries of whether the US Federal Reserve would still introduce hike in interest rates at is much anticipated December policy meeting of its officials.

A good number of traders in the forex are greatly expecting the US Fed to announce an increase in rates when they meet tomorrow. Although from recent events, it seems the bank could choose to be more cautious given the recent increase in Treasury yields as well as strong hope that the US economy would expand under incoming Donald Trump.

Some three months back in September, Fed officials' median projection was for two rate increases by 2017. A rate increase this year would be the second after the last one we had last year December. Benchmark 10-year Treasury yields had jumped up by 2.528% yesterday. That would mark its best in over twenty four months.

 

Merry Dollar springs up to to 14-year highs with Fed sponsorship

The U.S. dollar sprang up to its highest level in over 14 years against its major rivals today. The increase comes as the dollar continues it nice run of gains following the decision of the US Federal Reserve to raise interest rates. Traders are already looking forward to a raise in US inflation when the president-elect Donald Trump assumes office next year.

The dollar index, which is responsible for the measurement of the US dollar against a host of its rivals had made a wholesome gain of 1.5%. This brings it up close to 103.320 which is a high of about 14 years. This would set the dollar index in line for its best gain in a day in about 6 months.


The Mexican peso also rose up today following the decision of the Bank of Mexico to hike its overnight rate by 5.75% moving it up by 50bps. The central bank of Mexico declared that the U.S. election results has raised up risks of policies which has the prospects of hurting the bilateral relationship the Unites States shares with Mexico.

 

GBPUSD remains new 3 week low, consolidates Monday Losses

The GBPUSD slides to its lowest level since September 14 at 1.3256. It is starting to take back its losses, currently trading at 1.3277. The pair recorded a 0.9% loss on Monday. The Pound came under extreme selling pressure after the manufacturing PMI data from UK was released and turned out to be 55.0 from 56.9 in September. The market sentiment was 56.4, but the released figure was much lower than expected. Adding salt to injury, the USD was dancing to the positive atmosphere of the manufacturing sector in the U.S. The dollar index caught a fresh 6 week highs at 93.51.

Another PMI data for construction sector will be released tomorrow. A negative figure could hurt the Pound’s demand even further. The pair could hit the support level at 1.3200. Technical indicators such as the RSI turned below the 50 handle on the daily chart, which is a big red light for the pair.

 

US Index looking lost around 93.20, ADP eyed

The U.S dollar index, which tracks the greenback, is currently on a defensive trade around 93.20/30 region. Starting the week positively, it is now headed in a negative direction as the vibe it got from the US yields have eased to 2.31% area, around 6bp down from Monday’s 2.37% tops.

The dollar index downward movement could also have stemmed from the return of dollar sellers after the Fed published the shortlist of its presidential candidates. There was a rise in the odds for FOMC’s J.Powell, which seems dovish to investors.

The US index now looks to the ADP report, where the market consensus predicts a rise in the number of jobs in September to have added 125k. Technically, the index is losing 0.16% at 93.27. If the 10-day SMA at 93.00 is breached, the index could head toward the 55-day SMA at 92.96 and 92.47.

 

GBP/USD finds buyers near 1.3060, eyes on US payrolls

The GBPUSD slides to 1.3060 levels, a fresh monthly-lows, and now makes little track back as bulls are relieved as a result of upcoming US NFP release. The question remains whether the pair will recover and how long it will last if it does.

The monetary policy diversion between the US and UK keeps favoring the USD and thus the pair remains on course to book the third weekly loss. The Brexit negotiation has taken a new turn and investors are betting on UK Prime Minister Theresa May’s resignation. This new development is weighing heavily on the Pound.

Presently, the GBPUSD is recovering, which can only continue if the US NFP data does not meet up to expectations and cast doubt on the December Fed rate hike. Otherwise, we could see the GBPUSD go lower to test the 1.3000, psychological levels.

 

USDCAD stuck in a narrow trading rage around 1.25 mark


The pair has failed to show any real direction as it oscillated in a 25 pips narrow trading range around the psychological mark of 1.2500.

The USDCAD posted minor losses for a straight second time and is weighed down by the bullish sentiment around Crude oil prices. The CAD is the currency benefiting from the bullish trend of Crude oil prices at the moment.

Higher oil prices, supported by the OPEC's willingness to extend the production cut agreement, negated Tuesday's disappointing Canadian housing market data and dragged the pair farther from Friday's one-month highs, near the 1.2600 handle touched in the aftermath of NFP report.

The pair is likely to break below 1.2480-1.2485 support area if it continues falling and go below the 1.25 psychological mark. 1.2520 seems to be the new resistant level and if crossed, could reclaim the 1.2600 mark.

 

Dollar steadies ahead of Friday's U.S. inflation data

The dollar was ready to avoid a five straight day of losses against a basket of major currencies on Thursday. Investors are looking ahead of Friday’s inflation data, which will provide clue as to whether the Fed will increase interest rate.

The dollar index, which tracks the greenback against six major currencies, rose by 0.06 percent at 93.074. Closing in the red would have marked its longest loss in four months.

"The move in the dollar index this week is primarily a correction to the big move that we had in September," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

"It's largely corrective as the market awaits fresh signals."

The index, which logged it's first monthly gain in seven months in September, rose to more than a 10-week high last week, after U.S. wage data for September was seen as a sign that inflation might come off a recent period of weakness.

Traders will now look forward to the U.S. consumer data that will come up on Friday. Many policymakers are still having a positive outlook toward another increase in interest rate this year, but a few others still feel that additional tightening would depend on the inflation data.

 

EUR/GBP clocks 5-day high despite signs of political tensions in Spain.

EURGBP hits a 5-day high of 0.8958 regardless of the report that the Catalan leader is making a move to bid for independence. According to the Spanish newspaper La Vanguardia, Puigdemont is ready to reveal to the Prime Minister his interest in the independence. This is not going to turn out well because PMI Rajoy threatened to trigger article 155 of the Spanish constitution in order to impose a direct rule over Semi-autonomous Catalonia should Puigdemont bid for independence.

However, the ERUGBP has not shown any signs of slowing down. Things may change if there is any further political tension in the region.

The cross was last seen trading around 0.8950 levels. The immediate resistance is lined up at 0.8993, which, if breached, would expose 0.9033 (previous week's high) and 0.9049 (late Oct 2016 high). On the downside, breach of support at 0.8929 (100-DMA) would expose support at 0.8897 (previous day's low) and 0.8891 (July 27 low).