currecncy insight

US dollar eases as employment figures miss forecast

US Dollar softened slightly yesterday. Political votes today in the UK – Some Sterling volatility is expected over the next few days. Midday, the Bank of England announce Monetary Policy. Shortly after the BoE announcement, ECB President Lagarde delivers an update on the UK/France fishing rights
currecncy insight

GBP steady ahead of UK elections

The greenback erases some earlier gains following the no show from the US Treasury yields. Chaos around Brexit threatens the Sterling performance. Exporting companies from the UK face disruptions and bureaucratic complications and India and Britain signed a $1billion trade deal post Brexit
currecncy insight

Political uncertainty overshadows crisis elsewhere

Political uncertainty overshadows crisis elsewhere, meanwhile, the Euro softens amid stimulus phaseout.
currecncy insight

China’s sentiment down more than expected as growth begins to cool

China's manufacturing and non-manufacturing sentiment fell short of expectations in April. EUR/USD is struggling to hold onto 1.21 after German GDP missed estimates. The greenback is making a comeback, and this is set to extend. There are no notable British releases, but politics will likely weigh on Sterling...
currecncy insight

Further USD weakness after dovish Fed

Brushing aside the cost of Boris Johnson’s wallpaper traders concentrated on the positives around the reopening of the UK economy yesterday. The Euro gained against the dollar with US dollar weakness coming in part from a dovish Federal Reserve statement. Dollar traders are now ready for this afternoon’s US GDP data, which is expected to show...
currecncy insight

Australian inflation rises less than forecast

Australia’s consumer price index rose at a slower pace than the markets had expected in Q1. the Euro – US Dollar rate is still trading above a 100-day moving average. The US Federal Reserve’s Open Market Committee meeting is this afternoon, no-one expects a policy change, but any change in emphasis or sentiment could swing the USD
currecncy insight

German Ifo disappoints

Yesterday’s main surprise was a lower than expected Ifo survey on the German business sector. Chinese industrial profits rose 137.3% in the year to March while US durable goods orders were up 0.5% in March, and the core orders were up 1.6%.
currecncy insight

German Ifo should strengthen Eur

Last week was another one in which the US dollar continued to display signs of weakness. The Euro to US dollar rate is back above 1.21, and the Sterling – US dollar rate he’s flirting with 1.39 and above. Sterling – Euro exchange rate starts the week in the mid 1.14s
currecncy insight

Japanese service sector weakens Yen

The Japanese yen had a busy overnight session after inflation data disappointed. Sterling fell about a cent against the US Dollar becoming more stable this morning, following very strong figures reflecting the rebound in UK retail sales. the day ahead is awash with purchasing managers indices from the EU, the UK and the US markets
currecncy insight

World vaccine-led recovery countered by COVID surge in India

Optimism about a developed world ‘vaccine led recovery’ is countered by surges in covid cases in India while coronavirus cases are dropping in the US as the world’s largest economy reached 40% of its population with at least one vaccination. European Central Bank is set to leave its policy unchanged
currecncy insight

NZ leaves Western intelligence in favour of China

Monday was marked by very clear weakness in the US Dollar prompted by improving covid prospects elsewhere and concern about the increasing numbers of young covid patients seen in US figures. The release of the minutes from the last Reserve Bank of Australia meeting included how their low interest rate policies were “contributing to a lower exchange rate than otherwise.”
currecncy insight

USD falls on improving prospects elsewhere

Monday was marked by very clear weakness in the US Dollar prompted by improving covid prospects elsewhere and concern about the increasing numbers of young covid patients seen in US figures. The release of the minutes from the last Reserve Bank of Australia meeting included how their low interest rate policies were “contributing to a lower exchange rate than otherwise.”
currecncy insight

New trading week finds global markets in a mixed mood

Currency Markets have kicked off the new week in a mixed mood, as US Treasury yields remain depressed despite upbeat US data. Cryptocurrencies have been attempting a recovery after collapsing over the weekend. GBPUSD is clinging to gains around 1.3850 as nearly half the population has received at least one vaccination
currecncy insight

USD strengthens – Dow and S&P at record highs

Dow and S&P indices his record highs last night as we see an easing of Treasury prices resulting in US Dollar rate being down three quarters of a cent to $1.3720 against the Pound. Part of the US Dollar strength is due to nervous investors watching the escalating tension in Ukraine and the tussle between the US and China over sanctions
currecncy insight

US oil stocks tumble but USD is serene

A 5.9 million barrel drop in US oil inventories was double the expected loss sending the price of crude oil to a one month high. US Federal Reserve speakers and the release of the Beige Book reported interest rates and monetary policy remaining low. In Australia, we see 70,700 new jobs being created and their unemployment rate coming down to 5.6%, the lowest since April 2020
currecncy insight

US Dollar drops on long term interest rate views

The story of the last 24 hours is the drop in the value of the US Dollar. Federal Reserve meeting minutes confirmed that inflation will stay low for an extended period, and bond yields will do likewise. Today we have speakers from the BOE, ECB and several Federal Reserve members.
currecncy insight

NZ businesses pessimistic for 14th quarter in a row

New Zealand business confidence took a hit in the first quarter of the year. A minus 13% reading on the survey is significantly worse than the last report and the 14th straight negative reading, going back to Q4 2017. It seems traders are...
currecncy insight

Sterling recovers as UK businesses reopen

Large parts of the economy can start to reopen as of today, so that’ll be seen as positive, and the Pound has already risen half a cent in early trade. This morning’s EU retail sales data may stall that as it is expected to show a healthy improvement.