In the FX market, the pound sterling continues to rally as Theresa May takes over the reins as Prime Minister. The fact that she has made it clear that she won’t rush to push the Brexit button has helped clouds to dissipate in the short-term and allowed the pound to rally for a fourth day in row, up to $1.33, while it was still trading at around $1.29 last Friday.However, the pound’s upside potential may be limited as the BoE is expected to cut its benchmark interest rate on Thursday. GBP/USD tr…
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USD UPDATE.
The dollar moved lower against the other major currencies on Tuesday, as markets digested last week’s strong U.S. employment data and investors turned their attention to upcoming central bank meetings amid growing expectations for additional stimulus measures.GBP/USD rallied 1.29% to 1.3163, pulling back from the post-Brexit 31-year low of 1.2794 set last Wednesday.The pound strengthened as …
JPY Lower Amid Election Result
Last night, Japan machine orders for May came in lower for the second month in row at -1.4% after the sharp decline, the biggest in the last two years, a month before in April when it had been released at -11%. This is a real bad indicator showing a decline in business investment as well as a slowdown in the global economy. Machine orders is a great proxy of business investment and since January the trend is clearly negative.As a result, the yen has lost a figure against the greenback earl…
EUR/USD Threatens Further Weakness Towards 1.0909 Level
With a reversal of its previous week’s gains seen the past week, more decline is envisaged. Support lies at the 1.1000 level. Further down, support comes in at the 1.0950 level where a violation will aim at the 1.0900 level. A break of here will target the 1.0850 level. The weekly RSI is bearish and pointing lower, supporting this view.Conversely, on the upside, resistance comes in at the 1.1100 level, with a cut through here opening the door for more upside towards the 1.1150 level. Further up,…
Canada strong reasons to talk about easing monetary policy.
Canada could not have reported a more different employment report: 700 jobs were lost in June and yet the unemployment rate dropped to its lowest level in nearly a year. The improvement in the jobless rate was largely driven by a lowerparticipation rate as full-time workers dropped 40K and part-time hires increased by 39K. This marked the worst quarter for Canada’s job market in 2 years. USD/CAD hit a 1-week high on the news that, along with…
U.S. June job creation blows bast consensus; jobless rate
The U.S labor market showed signs of recuperation as the economy created more jobs than expected, although the unemployment rate rose more than forecast from an eight-and-a-half year low, according to official data released on Friday.Non-farm payrolls rose 287,000 in June, compared to the rise of 11,000 in May that was revised from the initial reading of 38,000 that had been the weakest read since September 2010. The data beat the consensus estimate for the creation of 175,000 jobs.The …
Dollar, Yen Advance Amid Growing Investor Angst
Sterling spiked down to $1.28 in early Asia. It snapped back to almost $1.30 before the European session, where it has been trading broadly sideways. The tone remains fragile, and a retest of the lows seems likely.The euro posted a bearish outside down day yesterday and has seen follow through selling today. It fell through $1.1040 in Asia but has held above there in Europe. The upside has been capped near $1.1080, but resistance may extend to $1.1100.The …
GBP/USD re-approaches 31-year lows after U.K
The pound reapproached 31-year lows against the U.S. dollar on Tuesday, after the release of downbeat U.K. service sector data added to concerns over the effects of the Brexit vote on the British economy.GBP/USD hit 1.3148 during European morning trade, the pair’s lowest since June 27; the pair subsequently consolidated at -, retreating -%.Cable was likely to find support at 1.3118, the low of June 27 and a 31-year trough and resistance at 1.3339, Monday’s high.Research group Markit said its …
The US dollar turned in a mixed performance in the
There was an acute market reaction for a couple of days, but the disruption to the financial system was not major. Officials and investors feared worse. The initial line of defense—central bank swap lines—were barely used. The Bank of Japan was the only central bank to draw on the Fed's lines, and even then, the amount was inconsequential ($2 million).Outside of sterling, which lost nearly 3% on the week, theSwiss franc (-0.3%) and the …