The Latest in Forex News & Analysis.

Greece Making Progress

By MR | August 20, 2018 10:17 pm | 0 Comments

Tonight the Euro Zone’s bailout fund, better known as the European Stability Mechanism, displayed their confidence in Greece’s ability to operate without international financial support – at least for the time being.

This marks the first time in nearly a decade, since their collapse in 2010, that Greece is financially stable enough to manage on their own without an IMF or foreign related safety net.

Euro jumped nearly 45 pips on the back of the news.

Fed Rate Announcement

By MR | June 13, 2018 2:12 pm | 0 Comments

The Fed implemented a rate hike of 25 basis points as expected. The original thought was that we would see 3-4 rate hikes in 2018, it now seems that we will see 4.

If we look at the Dot Plot, the Median moved from 2.125 to 3.125 on the back of the rate announcement which offers us a more Hawkish tone from the Fed going forward.

A kneejerk reaction of Dollar strength in the moments after the rate was announced.

FOMC press conference to follow at 2:30pm.

A look at the week ahead..

By MR | June 1, 2018 3:45 pm | 0 Comments

Here is a quick look at the economic week ahead. There are a number of economic data events of high importance.

June 4th

UK Construction PMI

June 5th

RBA Rate Statement and Cash Rate

UK Services PMI

US ISM Non-Manufacturing PMI

Aussie GDP

June 6th

Canadian Trade Balance

US Oil Inventories

Aussie Trade Balance

June 8th

Canadian Employment Data

Trump tweets ahead of NFP data

By MR | 2:32 pm | 0 Comments

This morning at 7:21am, President Trump sent out a seemingly casual, yet powerful tweet that turned out to be a possible foreshadow of data to come.

The President tweeted the following about one hour before the employment data was released at 8:30am:

As it turns out, the employment data came in strong as jobs and wages are up and the unemployment rate is down.

There has been a great deal of chatter and speculation circulating about the tweet since. Opinions are varied and continue to keep rolling in. The center of focus are the intentions of the President’s tweet and the potential legality of it.

US Tariffs Announced

By MR | May 31, 2018 10:29 am | 0 Comments

The United States announced its plans to impose tariffs on steel and aluminum imported from Canada, Mexico and the European Union. United States equity took a bit of a dip as a result of this decision, causing a rippling effect with Dollar pairs.

Although these tariffs will be imposed, it seems that NAFTA negotiations will continue as we move forward.

The trade war remains clouded with speculation as we wait with two main questions – what will happen next? Which countries will be involved next?

Be on the lookout for reactions and/or countermeasures from Canada, Mexico and the European Union.

Bank of Canada Rate Statement

By MR | May 30, 2018 10:39 am | 0 Comments

The Canadian Dollar flew this morning on the back of the Canadian rate announcement. Sending Dollar Canada into a nosedive, over a big figure lower. All Canadian crosses experienced sharp moves as well, reacting accordingly to the sudden Canadian Dollar strength.

The Bank of Canada left their rates unchanged at 1.25%, which what was expected. However, the move was generated from the language of the Rate Statement. The removal of their “cautious” language in their approach to their rates. It is likely that inflation will be higher even though the BOC maintains its target of 2%.

It was a very confident statement that left us with a positive and upbeat view of the Canadian economy moving forward.

FOMC Minutes

By MR | May 23, 2018 4:04 pm | 0 Comments

The news out of the Fed minutes today delivered a small blow to the dollar. It started selling off a bit on the back of the minutes, putting a brief halt on its recent momentum.

The Fed seemingly confirmed what was widely expected and anticipated – a June rate hike. The Fed continues to maintain their 2% inflation target. If rates continue to increase, it appears that Fed funds will head toward a neutral level.

RBA Cash Rate Decision

By MR | May 1, 2018 1:28 am | 0 Comments

As expected the RBA left their cash rate unchanged at 1.50%. It is anticipated that the rate will continue to remain there for the foreseeable future.

Areas of underperformance such as wage growth and the housing market continue to influence the currency.

Look for Australia’s GDP to average over 3% for the next two years.

Busy Week

By MR | March 23, 2018 4:52 am | 0 Comments

Busy week as we saw multiple important meetings take place globally and a trade war begin to brew.

We witnessed the first FOMC meeting under Chairman Powell. The interest rate hike of 25 basis points was implemented as expected. We also learned that 2 more rate hikes are on the horizon for 2018 and potentially 3 in 2019.

The Bank of England was a bit more tame than the United States as they left their rates unchanged.

One main takeaway from the G20 meetings is their mission to strengthen global trade contribution. They also touched on cryptos, mostly the possible dangers or red flags associated with these “assets”.

President Trump continues to take steps to impose taxation on foreign goods. China seems poised to counter with moves of their own.

A volatile start to the week

By MR | February 7, 2018 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”.

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