Forex News

The Japanese yen was mixed today after Fitch Rating maintained Japan’s sovereign credit rating. The forecasts made by the agency were not all good, though.

The euro today attempted to rally against the US dollar from the Asian session but encountered massive resistance despite the release of upbeat euro area inflation data. The EUR/USD currency pair could not muster enough momentum to mount a sustained rally as each attempt was quickly countered by a retracement as the bears stepped in.

The US dollar versus the Japanese yen might look as if it is ready for a rally, but the chart tells a different story.

The US dollar is taking a breather midweek following a strong session on Tuesday, driven by strong economic data that left investors feeling ebullient. A string of housing numbers did come out, but the market did anticipate weakness in the sector, which could adjust traders’ minds about the world’s largest economy being on solid footing.

The Canadian dollar is mixed against a basket of currencies on Tuesday as investors sift through new motor vehicle sales data and foreign securities purchases for May. The loonie was sent lower on crashing energy prices, which is bad news for a resource-rich market. Traders will now wait for June inflation numbers that are expected to be lower than in May.

The Sterling pound today fell to new 27-month lows against the US dollar as markets reacted to a poor UK jobs report and the uncertain British political environment. The GBP/USD currency pair was also adversely affected by comments from the two remaining Conservative Party candidates saying that the Irish backstop was dead.

The Australian dollar gained against the majority of its most-traded counterparts today, with the exception of the US dollar. That is despite the Reserve Bank of Australia released policy minutes, which suggested that the central bank maintained easing bias.

The New Zealand dollar gained against most of its major peers today. While the kiwi has lost gains versus its US counterpart by now, it was still trading higher against other peers. Market analysts attributed the rally to the positive consumer inflation print, though some of them argued that the data is not as good as might seem at first glance.

The Swiss franc opened sharply higher against its major rivals today. While it fell from the opening level against some peers, the Swissie gained on others. Domestic macroeconomic data was negative to the currency.

The Chinese yuan is struggling to find direction to kick off the trading week after economic growth slowed to its lowest level in nearly three decades. But it was not all bad news for the world’s second-largest economy as an influx of data came in better than expected, giving the yuan some support.