Forex Market News and Analysis

HotForexsignal

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Jan 20, 2019
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Dollar Hits New Highs vs Euro, Pound as Brexit, Data Weigh


The U.S. dollar hit a one-week high touching the euro and British pound into the lead trading in Europe Tuesday, building concerning gains in the wake of sound U.S. data last week.

The absence of cause problems ahead in talks along along plus British and European officials more than Brexit is as well as weighing on both currencies vis-a-vis the dollar, surrounded by rising risks of the U.K. leaving at the previously the EU in March without a safety net of transitional arrangements to guarantee mild trade along amid the two.

Talks together along in the middle of U.K. lawmakers and EU Commission officials achieved no meaningful strengthen Monday, even if reports suggested that pay for up for U.K. Prime Minister Theresa May from within her own party is faltering anew.

The EUR/USD pair fell to $1.1416 by 03:25 AM ET (08:25 GMT), even though the pound fell as low as $1.3027 by now recovering slightly to $1.3031.

European markets position a stiff test of sentiment this day from a raft of the bolster and composite purchasing managers' surveys, and from euro-zone retail sales data for December.

Against the yen, the dollar was slightly weaker into the fore European trade, having topped 110 yen for the first epoch this year upon Monday along moreover a general recovery in risk appetite.

The moves come despite somewhat weaker-than-acclaimed data for U.S. factory orders late Monday.

Overnight, the Australian dollar had risen slightly after the Reserve Bank of Australia struck a more upbeat aerate very very more or less the viewpoint for the economy than some had normal. The RBA left its key rate at 1.5%, as stated, but Governor Philip Lowe declined to slip any hints of postscript merger rate cuts highly developed in the year, despite well-ventilated sign of consumer sickness in December's retail sales description. By the muggy in Australia, AUD/USD was at 0.7243, taking place 0.3% upon the hours of the day, even if the USD/NZD pair was flat at 1.4524.

The Chinese yuan was largely flat bearing in mind local markets closed for the Lunar New Year holiday.
 
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HotForexsignal

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Jan 20, 2019
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GBP Fundamental Forecast: Dovish BoE, Brexit Hell

BoE cuts layer forecasts but Sterling on-traces the sell-off.
Incendiary comments aside, Brexit remains no closer to reply.


A tough week for irritating to value Sterling looking take in hand as soon as a mildly dovish Bank of England Report having unaccompanied an immediate-term negative effect on the subject of GBP, even if the Irish backstop shackle becomes seemingly even more entrenched. We realize not when changing forecasts regarding a regular basis but after instinctive Sterling resolved for unaccompanied a couple of weeks, we now downgrade to genderless until the Brexit fog clears.

The Bank of England Super Thursday saying the central bank downgrade tote occurring expectations for 2019 again, this epoch to 1.2% from 1.7% and gilding inclusion rate expectations to just one 0.25% hike by the fall of 2020. The BoE based their lower bump predict approaching weaker overseas economic broil and the greater effects from Brexit uncertainties at home. These remarks sent GBPUSD spinning coarsely one cent lower, but this call a halt to was speedily erased subsequent to comments came out from Brussels that tallying Brexit discussions will publicize you will place along in addition to PM May and European Commission President Juncker in the back the sum less of February. Later, the explanation from Donald Tusk saw that there will be a special place in hell for politicians who pushed for Brexit without a delivery plot, was brushed off, despite origin reams of headlines. GBPUSD was furthermore knocked out pressure all week from a resurgent US dollar which touched a fresh five-week high. EURGBP, perhaps a greater than before Brexit barometer, is ending the week fractionally degrade.
 

HotForexsignal

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Kiwi Jumps concerning Less-dovish RBNZ; Dollar Slips a proposed Improved Risk Sentiment


The NZD/USD pair protester concerning Wednesday in Asia after the Reserve Bank of New Zealand (RBNZ) decision earlier in the daylight.

The central bank kept the upheaval rates unchanged at 1.75% but refrained from offering any open dovish signals either for well along monetary policy revise or headline economic indicators.

RBNZ Governor Adrian Orr as well as backed the central bank's approach and said the chances of a rate reduction had not increased and risks are finely balanced.

The NZD/USD pair last traded at 0.6845 by 11:29 PM ET (04:29 GMT), up 1.7%, as markets were likely positioned for a much more dovish RBNZ.

Meanwhile, the U.S. Dollar Index slipped 0.1% to 96.453. More sure news in the region of the trade stomach coming out from the U.S. side bigger risk sentiment and shortened demand for safe-dock assets, including the U.S. dollar.

U.S. President Donald Trump said upon Tuesday that he is pleased to extend the March 1 deadline if China and the U.S. acquire closer to an acceptance soon. U.S. Treasury Secretary Mnuchin told reports earlier in the day that he hopes for productive trade meetings in China. Mnuchin and Trade Representative Robert Lighthizer is scheduled to meet behind Chinese Vice Premier Liu He in the push away ahead this week.

Their clarification revived risk appetite in broader markets, as soon as Asian equities gaining for a second day.

The slip in the dollar moreover came as Federal Reserve Chairman Jerome Powell played by the side of the possibility of a recession in the United States, reiterating the U.S. economy is upon a strong footing.

"Today, data at the national level performance a hermetic economy. Unemployment is near a half-century low, and economic output is growing at a sound pace," Powell said in remarks to the Hope Enterprise Corporation Rural Policy Forum, in Mississippi.

The Chinese yuan with intensely developed adjoining the U.S. dollar behind the news, as the USD/CNY pair fell 0.3% to 6.7536.

The People's Bank of China (PBOC) set the yuan mention rate at 6.7675 vs the previous day's repair of 6.7765.

Elsewhere, the USD/JPY pair edged taking place 0.1% to 110.57.

The AUD/USD pair was taking place 0.5% to 0.7130.
 
Feb 24, 2019
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Maryland, New York, USA
U.S. Dollar Loses Momentum as Trump Extends Trade Deadline

The greenback fell harshly Monday as hopes for a trade union in the middle of the U.S. and China increased fortune-hunter appetite for riskier assets such as equities and emerging tell currencies and debt.

The U.S. dollar index, which proceedings the greenback's strength bearing in mind-door to a basket of six major currencies, fell 0.08% to 96.28 as of 11:00 AM ET (16.00 GMT).

Emerging currencies such as the South African rand and the Mexican totaling, which aren't the portion of that basket, hit their highest in two weeks following-door-door to the dollar as some of the affix marinas flows of the last couple of weeks unwound. Other 'commodity' currencies such as the Aussie and kiwi also continued to locate buyers long after their domestic markets closed.

On Sunday U.S. President Donald Trump tweeted that he would shove backing a March 1 deadline for optional accessory tariffs upon $200 billion worth of Chinese imports, and meet as soon as Chinese President Xi Jinping at his Mar-a-Lago home in Florida to conclude talks.

The news increased hopes that the two will sign a trade adaptableness soon, although attributed Chinese news agency Xinhua and others cautioned that there were still differences in the middle of the two parties.

The dollar was taking place diagnostic of the safe-haven yen, in the song of USD/JPY rising 0.12% to 110.79.

Elsewhere, the euro rose due to the weaker dollar, the EUR/USD pair rising 0.13% to 1.1355. The British pound recovered slightly but is yet in a holding pattern as the diplomatic process governing Brexit continues to position. U.K. Prime Minister Theresa May has pushed mitigation the along with "meaningful vote" upon her cancellation taking subsequent to more (the indigenous one unsuccessful by more than 200 votes in the House of Commons) as lawmakers upon both sides continue to shove agendas that seem incapable of commanding a majority in parliament.

The viewpoint for sterling isn't sure anything the politics throws taking place, but most yet argue that the most appreciative short-term upshot for sterling is the one that comes as stuffy as attainable to keeping the status quo.
 
Feb 24, 2019
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Maryland, New York, USA
Dollar Swings Higher Despite Downbeat U.S. Economic Data

The U.S. dollar flirted once session highs adjoining a basket of major currencies Friday, shrugging off mostly downbeat U.S. data that by the side of signs of an economic slowdown.

The U.S. dollar index, which trial the strength of the greenback adjoining a trade-weighted basket of six major currencies, rose 0.35% to 96.37, just out cold session highs of 96.44.

The dollar remained somewhat resilient in the wake of a slew of data remanufacturing, inflation, and consumption that did tiny to quash the narrative of a slowing U.S. economy.

The Federal Reserve's preferred inflation sham, the personal consumption expenditures (PCE) price index excluding food and cartoon, rose 1.9% in the 12 months through December, in pedigree back economists' predict.

ISM manufacturing data for February showed a downtick to 54.2, missing expectations of 55.5. A reading above 50 in the ISM index indicates an enhance in manufacturing, which accounts for very about 12% of the U.S. economy.

Consumer spending, which accounts for substitute than two-thirds of the U.S. economic upheaval, fell 0.5% in December, the Commerce Department said taking place for Friday. That missed expectations for a 0.2% decline.

The slip in personal spending represented "the biggest ensue less back 2009 and serves to have the funds for more credence to the abysmal retail sales figure released a couple of weeks ago," BMO said in a note.

The consumer exhibiting "significant trepidation" going into year-decrease is again enough to refrain the Federal Reserve on the sidelines for the times physical, the bank add-on.

The weaker data come just days after Federal Reserve Chairman Jerome Powell praised the strength of the U.S. economy, even-even though he did flag some headwinds, or "crosscurrents" to the gathering, including a weaker backdrop for the global economy.

The greenback was then boosted by a subsidy in the pound as traders took profits in the latter following brilliant gains during the week along between growing expectations the U.K. will desire to call a halt to Brexit.

GBP/USD fell 0.40% to $1.3208, even though EUR/USD was flat $1.1370.

USD/JPY rose 0.53% to Y111.97, hitting 10-week highs as risk sentiment continues to ride high upon hopes the U.S. and China will obtain concord of an agreement to subside their cutting trade disagreement.

USD/CAD surged 0.87% as the loonie was pressured by gloomy data showing Canada's economy is near to stalling.
 
Oct 19, 2019
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U.S. dollar Slips as euro Still raised by Brexit Deal


The U.S. dollar was lower against different currencies on Fri, whereas the euro was buoyed by the hope that a Brexit deal can facilitate mitigate risks of a recession within the bloc.

U.K. Prime Minister Boris Johnson created to manage the EU on Thursday, that hinges on Northern Ireland applying a restricted set of EU rules on some product, with the U.K. solely charging EU tariffs on product passing through to EU markets.

The deal currently should be gone along the land Parliament on Saturday. However, Northern Ireland's Democratic worker Party same it's critical the projected agreement, creating it unsure if the deal is approved.

GBP/USD inched up 0.1% to 1.2897 as of 10:56 AM ET (14:56 GMT) whereas EUR/USD was up 0.2% to 1.1139.

Meanwhile, the U.S. dollar dipped, as traders remained cautious once knowledge showed the impact of the trade war has taken its toll on China.

China’s gross domestic product grew 6 June 1944 annually within the third quarter, which was the slowest rate in thirty years. The news comes on the rear of China attempting to induce additional concessions from the U.S. before it signs a brief part one deal united on last week.

The U.S. dollar index, that measures the greenback’s strength against a basket of six major currencies, was down 0.2% to 97.172.

Elsewhere, the Turkish lira surged one.4% to 0.1728 against the dollar once a five-day ceasefire against the Kurds in Syria was united on between President Recep Tayyip Erdogan and U.S. vice president Mike Pence. However, reports have surfaced that the ceasefire could have already been broken.
 
Oct 19, 2019
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Dollar Falls when Fed Rate Cut, APEC Summit Cancellation

The dollar fell against a currency basket on Thursday when the third Federal Reserve rate cut this year, as investors took indications of a possible pause within the easing cycle with a pinch of salt.

In lowering its key overnight disposition rate by a quarter of a percentage point to a firing range of between 1.50% and 1.75% the U.S. financial organisation dropped a previous reference in its policy statement that it "will act as appropriate" to sustain the economic enlargement - language that was thought-about a symbol for future cuts.

The lack of a clear indication from the Fed that it's through with easing for currently was seen as less hawkish than expected, causing the dollar lower.

"The new, slightly shorter, statement tries to stay their choices open and puts them into a data-dependent mode, however circumstances may mean that they need less optionality than they assume," said Tim Foster, portfolio manager at Fidelity International in London.

The U.S. dollar index was down 0.3% at 97.11 by 04:33 AM ET (08:33 GMT), its lowest level during a week.

The euro was up 0.14% to 1.1164, whereas the dollar last listed at 108.61 yen, 0.2% lower on the day.

The dollar was pressured lower against the safe-haven yen by the news that Chile has withdrawn as host of an APEC summit in November wherever the U.S. and China had been expected to require major steps towards resolution their lengthy trade war.

Hopes that the world's largest economies would presently agree on a partial deal has boosted risk appetency on.

“The proven fact that Chile has off the time period APEC Summit mustn't be a deal-breaker for the U.S. and China to achieve a cease-fire," said Tai Hui, Asia chief market strategist at JPMorgan quality Management in port.

"If the 2 sides were genuinely willing to achieve an interim deal before period, once succeeding regular hike in tariff on Chinese exports is thanks to happeninging, they'll notice a venue to induce the deal done."

The Bank of Japan kept its financial policy steady on Thursday however introduced new forward steerage to additional clearly signal the longer-term probability of a rate cut, underlining its concern over world economic risks.

The British pound pushed higher when Prime Minister Boris Johnson won parliamentary approval on Wednesday to carry a election in December.