Home > XE Currency Blog > XE Currency Blog - Market Analysis & Forex News
Due to high inflationary pressures, currency traders had assumed that the Bank of England would be raising rates this year. BOE governor Carney threw cold water on that assumption during an interview with the BBC: Read more
This week, we had the standard economic “on one hand, on the other hand” situation. The IMF released their latest World Economic Outlook which contained bullish data. However, we’re seeing some weakness in the OECDs leading numbers along with the Nowcasts released by the Financial Times. First, let’s look at the positive numbers from the IMF: Let’s begin with the lower left-hand corner, which shows the rise in various PMIs over the last few years. Read more
The Canadian economy was hit by the oil price declile in 2014 and experienced a mild recession. But over the last two years, it was bounced back. Now the Bank of Canada is faced with the possibility of higher growth and the accompanying inflation. Read more
March data was all positive, including the Index of Leading Indicators, buoyed particularly by the interest rate spread and ISM new orders, and also included building permits and starts, retail sales, industrial production and capacity utilization. My usual note: I look at the high frequency weekly indicators because while they can be very noisy, they provide a good Now-cast of the economy, and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. Read more
The DXY posted two-week highs in N.Y. on Friday, taking its cue from firmer Treasury yields. EUR-USD fell to 1.2250 lows, down more than 100 points from overnight highs. USD-JPY topped at 107.86, a two-month top. USD-CAD printed two-week highs of 1.2749 following cooler Canada CPI and retail sales. Read more
The dollar is finishing the week on a firmer footing, posting gains versus the euro and yen, and being aided higher against the pound after BoE Governor Carney walked back hawkish guidance. EUR-USD dropped through recent range lows at 1.2299-1.2307 on route to posting an 11-day low at 1.2293. Read more
The dollar has been trading firmer so far today, while weakness in the yen and sterling have remained themes. The dollar bloc currencies have also seen particular weakness, concomitantly with corrections in commodity prices and global stock markets. EUR-USD, meanwhile, has flat-lined in the mid 1.2300s, remaining comfortably off the three-week high posted on Tuesday at 1.2414 and comfortably above the week's low at 1.2324. Read more
The dollar bounced in N.Y. trade on Thursday, taking the DXY to 89.91, a one-week high, and through its 20- and 50-day moving averages of 89.80, and 89.83, respectively. In-line jobless claims and leading indicators, along with a better Philly Fed outcome had little impact, though a late day cable sell-off following dovish Carney comments resulted in the biggest move of the day. Read more
OVERVIEW FX market generally quiet with little economic data released. GBP falls after weak retail sales but recovers on M&A announcement. USD flat, Fed's economic survey suggests economy still growing "moderately". HIGHLIGHT The Mexican Peso is down over one percentage point versus the US Dollar, with investors unnerved by the strong performance in the latest opinion polls by Mexican leftist Andres Manuel Lopez Obrador. Read more
