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Forex news – Risk aversion roils stocks, knocks dollar down, drives money into safe bonds

Posted on October 16, 2014 at 1:18 pm GMT

The recent sharp falls witnessed for equity markets around the world have turned into the most prominent theme for foreign exchange markets. Worries about a global economic slowdown, the possible delay of interest rate hikes in the United States and a slowdown in the Eurozone – combined with structural problems there, caused a rethink for risk assets. This meant sharp falls for equities, a sharp drop for the dollar and a matching rise for the Japanese yen. Bonds also rose. [..]

Forex news –Oil drops to more than 2-year low on strong supply, weak demand growth and rising dollar

Posted on October 15, 2014 at 1:35 pm GMT

The price of light sweet crude oil was wrestling with the 80 dollars a barrel level, its lowest since June of 2012 as three factors have combined lately to push its price down. Oil is around 25% off its peak above 107 dollars registered in early June this year. This development could appear surprising at first, given all the geopolitical uncertainty and conflict surrounding key oil-producing countries and regions such as Russia and the Middle East. The first of the [..]

Forex News – UK inflation drop takes sterling below 1.60 vs dollar

Posted on October 14, 2014 at 11:56 am GMT

The news that UK inflation was a smaller-than-expected 1.2% year-on-year during September caused the pound to tumble, as economists were expecting an inflation rate of 1.4%. The previous month’s inflation rate was 1.5%. The main reasons behind the drop in inflation were lower food prices that partly were the result of a price war between the main UK supermarkets and lower energy prices as the price of crude oil has fallen precipitously on international markets. It is interesting to note [..]

Forex News – Fed reluctant to raise interest rates if global slowdown intensifies

Posted on October 13, 2014 at 12:35 pm GMT

An array of Fed speakers in Washington for the IMF / World Bank meetings over the weekend have reinforced the argument that the Fed should be more cautious in raising interest rates and possibly delay any rate hike because of slower global growth and the disinflationary effect of a strong dollar. The most preeminent speaker was the Federal Reserve Vice President Stanley Fischer, who spoke at an IMF event on Saturday, October 11th. The important quote that the media used [..]

Forex News – Week ahead: US retail sales, UK unemployment and Eurozone final inflation on tap

Posted on October 10, 2014 at 10:15 am GMT

Although next week does not feature any dramatic highlights, there will still be some useful updates with respect to the US consumer and industrial output, the UK labor market and inflation and Eurozone final inflation and industrial output. Starting with the Eurozone, one of the key worries of the markets currently concerns the economic outlook of the region as well as the threat of deflation. According to Draghi, the ECB appears ready to pump more stimulus in the economy because [..]

Forex News – Fed focus on soft US inflation leaves dovish tone in FOMC minutes

Posted on October 9, 2014 at 10:24 am GMT

On Wednesday the Federal Open Markets Committee (FOMC) released minutes of the latest policy meeting from September 16-17. The dovish tone of the minutes dropped a surprised on the markets and caused the dollar to plunge while US stock markets rallied. The minutes indicated that the Fed showed signs of concern over the global slowdown and the impact this would have on the US economy as a whole. Also there is fear that recent strength in the dollar has a [..]

Forex News – How non-major currencies fared during Q3

Posted on October 8, 2014 at 1:53 pm GMT

USDCAD The Canadian dollar was weak against the US dollar, as it was the victim of not only the broad strength of the greenback but also of the weakness in the price of oil; the major Canadian export. The Canadian economy is posting overall fairly robust growth rates of around 2.5% for the year as a whole according to the IMF, with the second half expected to show some improvement. Currently, the interest rate is at 1% and inflation approximately [..]

Forex News – FX majors quarterly review: US dollar shines during Q3

Posted on October 7, 2014 at 2:23 pm GMT

The third quarter had a single major theme for foreign exchange markets: US dollar strength. Following many months during which analysts were calling for outperformance of the US dollar – and getting it wrong – the dollar finally obliged and rallied strongly. After reaching a low in early May – which coincidentally marked the high for euro / dollar, the dollar index has rallied strongly. Strong economic data and a rebound from a very weak first quarter, during which one-off [..]

Forex News – September employment report powers US dollar to fresh multi-year highs

Posted on October 6, 2014 at 12:47 pm GMT

The much anticipated US employment report contained some very positive indications with respect to the US labor market and therefore the economy more widely. Non-farm payrolls climbed by 248 thousand compared to expectations of a 215 thousand rise while the unemployment rate dipped to 5.9%; its lowest since July of 2008. Economists were expecting the unemployment rate to remain constant at 6.1%. The payrolls change was a welcome reversal of the previous month’s mediocre number of 142 thousand. August’s figure [..]

Forex News – Week ahead: Central Bank meetings, minutes, speakers to call the shots next week

Posted on October 3, 2014 at 10:23 am GMT

Next week will be relatively quiet in terms of data, after the release of key numbers in the past week such as US nonfarm payrolls and Eurozone inflation and unemployment. However, central bank meetings in Japan, the UK and Australia as well as minutes from the Federal Reserve’s latest meeting should shed some light on policymakers’ views. At the end of next week, the annual IMF / World Bank meetings take place in Washington and the bringing together of so [..]

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