There’s a bit of economic optimism in the United States right now, and that is helping the US dollar against its high beta counterparts in Europe. Greenback is heading higher as the latest remarks from an ECB official hammer home the fact that the eurozone isn’t out of the woods yet.
March 11th, 2014 at 13:16
The euro is pulling back today, dropping after remarks from Vitor Constancio, the Vice President of the European Central Bank. Constancio’s remarks are renewing concerns about the eurozone economy, and reviving speculation that the ECB could take steps to ease monetary policy.
March 11th, 2014 at 11:48
The Great Britain pound retreated today, falling for the second consecutive session against the Japanese yen and for the third versus the US dollar, as economic indicators were not particularly supportive for the currency.
March 11th, 2014 at 11:06
The Australian dollar gained today as nation’s business confidence remained at the elevated level in February even though it retreated a bit compared to the previous month.
March 11th, 2014 at 3:43
The Japanese yen remained weak today even as the Bank of Japan refrained from expanding already substantial monetary accommodation. At the same time, policy makers signaled that they are going to keep existing monetary stimulus for the time being.
The Japanese yen was extremely weak last week. The market sentiment was favorable to the currency initially, but it sharply turned negative for the yen after the European Central Bank refrained from additional stimulus and was relatively optimistic about the future of the European economy. The better-than expected US non-farm payrolls did not help the Japanese currency either. But what about this week?
March 10th, 2014 at 15:45
The New Zealand dollar fell initially today, together with other high-beta currencies, because of poor trade data released from China over the weekend. Most currencies recovered later and the kiwi was among them as speculations about an interest rate hike allowed it to overcome the negative impact of the news from China.
March 10th, 2014 at 11:10
The Japanese yen declined, even though China’s trade data hurt the traders’ sentiment, as Japan’s economic growth was revised down in today’s report, spurring talks that the economy will not be able to sustain its expansion without additional measures, like monetary stimulus and weakening the currency.
March 10th, 2014 at 10:37
The Australian dollar opened sharply lower today compared to the Friday’s close as China’s trade data, which was released over the weekend, showed an unexpected trade deficit, reinvigorating fears about slowdown of China’s economic growth. As of now, the currency trades flat against the US dollar and bounced versus the Japanese yen.
The US dollar was unable to rally today against most other major currencies even though the geopolitical situation looked favorably to the greenback at the start of the week. The domestic employment report added some strength to the currency by the end of the week, but did not prevent losses against most majors.