The Latest in Forex News & Analysis.

RBNZ kept rates unchanged

By | February 7, 2018 3:11 pm | 0 Comments

The Reserve Bank of New Zealand kept ODR at 1.75% as expected with some dovish statement sending the currency lower.

  • RBNZ: Policy will remain accommodative for considerable period.
  • RBNZ: Assumes Trade-Weighted FX rate will ease.
  • Inflation reaching 2% in 3Q 2020 vs 2Q 2018
  • RBNZ: Uncertainties remain, policy may need to adjust.

A volatile start to the week

By | 1:16 am | 0 Comments

The past couple days have been some of the most volatile we have seen in some time. Global equities across the board have been weaker to kick off the week.

The Dow saw its biggest intraday trading drop in history. This comes after seeing the Dow hit its record high less than two weeks ago. The Dow rallied back on Tuesday after the record plunge to close nearly 600 points higher than Monday’s close.

We saw massive fluctuations in the S&P and VIX as well.

Secretary Mnuchin assures us that markets are functioning normally, economic fundamentals are in tact and referred to these price swings as a “short term disconnect”.


By | February 2, 2018 9:15 am | 0 Comments

January NFP was +200k vs 180k fcst.

Unemployment rate unhanged at 4.1%.

Average hourly earning +0.3% vs 0.2% fcst.

Overall solid data pushing 10 year Treasury yield to 2.84% highest since Jan 2014, USD higher across the board $JPY up to 110.40, EUR down to 1.2435 fo rnow.

Dec Factory orders and Jan Michigan Consumer Sentiment coming up in an hour, 1.5% and 95.0 expected respectively.

FED keeps rates unchanged

By | January 31, 2018 2:24 pm | 0 Comments

FOMC kept FF target rate unchanged at 1.25-1.50% range by unanimous decision.

Statement seems slightly hawkish;

  • Economy to warrant further gradual increase in rates
  • Inflation is expected to move up this year

This was the last FOMC meeting for Ms Yellen as a Chairwoman, market is now expecting a 25bp hike at the next meeting in March which will be chaired by new chairman, Jerome Powell.


US Treasury Secretary Mnuchin comments on USD

By | January 24, 2018 1:28 pm | 0 Comments

US Treasury Secretary Steven Mnuchin made comments in Davos, Switzerland saying “Weaker dollar is food for Trade”

US Dollar quickly reacted to the comment with DXY broke below 90.00 for the first time since 2014 reaching as low as 89.20, $JPY broke 109.00, EUR rallied onto 1.24 handle.

Secretary Mnuchin also said he was not particularly concerned about China’s UST buying, and Tax reform will bring back trillions of dollars to the U.S.

Chinese GDP

By | January 18, 2018 3:39 am | 0 Comments

Encouraging numbers out of China as they beat their projected 4th quarter GDP. Not only did they exceed 4th quarter expectations, but they also achieved positive yearly economic growth for the first time since 2010. Their target growth for 2017 was 6.5% which they comfortably outperformed by coming in at 6.9%.

This reflects positively on China’s economy, which is the second largest in the world. Shows signs of a healthy economy and potential growth to come.

A healthier Chinese economy could also mean good news for U.S. equities.

bank of canada raised interest rates by 25bp to 1.25%

By | January 17, 2018 10:14 am | 0 Comments

Bank of Canada hiked its benchmark interest rates by 25bp to 1.25% as expected, $CAD initially dropped then jumped higher on the back of some dovish tone statement saying “Stimulus still needed”, also cautioned NAFTA uncertainty weighing increasingly on BOC outlook.

“BOC will remain cautious on future rate moves”.

The US takes the day off, dollar slump does not

By | January 16, 2018 1:41 am | 0 Comments

The dollar continues to be softer, even with the holiday in the states. As a result, Gold continues its push towards its highest level since September, Cable broke through 1.38 for the first time in roughly eighteen months and Euro still has its sights set on 1.23.

Yen’s recent strength against the slumping dollar slowed a bit today as Dollar Yen began to climb on the back of news out of Japan. A mixture of lower than expected PPI readings, Japan still seemingly a long way off from their 2% target inflation rate and comments from Japanese finance minister Taro Aso. In his comments he hinted that volatile price swings in currency could spell trouble. Naturally, this Yen weakness had corresponding effects on all Yen pairs.


CHINA to consider halting UST purchases

By | January 10, 2018 11:06 am | 0 Comments

Headline out “Chinese officials recommending to halt US Treasury buying”

Treasury yields jumping up across the curve, 10 year broke key 2.50% and testing 2.63 high seen in March 2017.

Dollar index dropped 40 points in a blink, sending EURO$ onto 1.20 handle and $JPY down to low 111. USD continues to trade under pressure for now.

N.A. Economic data

By | December 21, 2017 8:51 am | 0 Comments

Several Key Economic data out from U.S. and Canada this morning;

  • US Q3 GDP +3.2%qoq vs 3.3% expected
  • US Q3 core PCE +1.3% vs 1.4% expected
  • Initial Jobless claims 245k vs 231k expected
  • Chicago FED 0.15 vs 0.75 prior
  • Philly FED 26.2 vs 21.5 expected
  • Canada Nov  CPI +2.1%yoy vs 2.0% expected
  • Canada Oct Retail sales 0.8% vs 0.4% expected

US Dollar slightly lower on softer GDP and higher claims, $CAD dropped a big figure on a much stronger retail number.

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