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European Session – Euro jumps above $1.32 after ECB lowers rate to 0.50 percent

Posted on May 2, 2013 at 12:49 pm GMT

Currency markets were relatively quiet leading in to the much anticipated European Central policy meeting later in the European session. Most major currency pairs were consolidating in early Thursday trading, digesting the news overnight from the Federal Reserve, which announced it maintained its current stimulus through bon buying, known as quantitative easing. This kept the dollar subdued. EURUSD was mostly range bound in the early Europe trade between $1.3146 and $1.3179. There was major volatility immediately after the ECB rate [..]

Forex News – Sterling lifted after UK construction PMI beats estimates

Posted on May 2, 2013 at 9:51 am GMT

Sterling rose against the dollar after UK construction PMI data showed the building sector returned to growth in April. The sector showed the best performance in six months and gave optimism that construction growth will help improve the UK GDP. The construction industry has been the biggest drag on the country’s economic growth between January and March, cutting 0.2 percentage points off economic growth in the period. The construction PMI data compiled by Markit/CIPS showed an increase to 49.4, just [..]

Forex News – German manufacturing PMI declines

Posted on May 2, 2013 at 8:39 am GMT

Germany manufacturing activity remains in contraction territory in April as indicated by the purchasing manager’s index (PMI) compiled by Market/BME. The index showed a reading of 48.1, down from 49.0 in March, the latest reading indicated a moderate worsening of overall business conditions, and the rate of deterioration was the most marked since December 2012. A number below 50 indicates contraction, above 50 is expansion. Consumer goods producers recorded the fastest rate of contraction. Germany is Europe’s largest economy and [..]

Asian Session – Markets steady after Fed, focus shifts to ECB

Posted on May 2, 2013 at 6:18 am GMT

The Asian session was relatively subdued as investors are waiting for the European Central Bank policy meeting later today. Most major currency pairs are consolidating after some volatility yesterday as a result of the Federal Reserve policy meeting. The dollar steadied in Asia after turning soft overnight following the FOMC decision of maintaining its stimulus program of buying $85 billion in bonds each month to push down borrowing costs and prop up the economy. Focus now turns to the closely [..]

Forex News – FOMC Statement highlights

Posted on May 1, 2013 at 8:07 pm GMT

The following are highlights of the statement from the Federal Reserve’s Federal Open Market Committee issued on Wednesday following a two-day meeting on interest rate policy: “Information received since the Federal Open Market Committee met in March suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown signs of improvement in recent months, on balance, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has strengthened [..]

US Session – Dollar rises against yen after Fed maintains QE

Posted on May 1, 2013 at 7:58 pm GMT

The dollar shot up against the yen after the Federal Reserve said it will maintain monetary stimulus and made few changes in its outlook despite a recent spate of poor economic reports for March. In the FOMC statement after the Fed policy meeting, it said it was prepared to “increase or reduce the pace of its purchases,” commonly known as quantitative easing, depending on labor market or inflation changes. The Fed also repeated that the US economy is expanding at [..]

European Session – Euro gains while dollar falls ahead of FOMC

Posted on May 1, 2013 at 12:16 pm GMT

The euro rose for a third day against the dollar and yen. Markets are pricing in a most likely interest rate cut by the European Central Bank. The central bank holds its monthly policy meeting tomorrow and there is growing speculation for a 25 basis point rate cut to 0.5 percent. Many investors are seeing this as “euro positive” since it will help give a boost to the euro zone economy. Meanwhile the dollar remains weak today as investors await [..]

Forex News – Sterling jumps after UK manufacturing PMI beats estimates

Posted on May 1, 2013 at 9:20 am GMT

Sterling jumped against the dollar after UK manufacturing PMI ticked up more than expected in April. The headline index printed at 49.8 versus 48.6 projected and increased from March which was revised higher to 48.6. GBPUSD jumped to $1.5589 a few minutes after the data at 0930 London time from $1.5550. While the PMI number is still in contraction territory (below 50), the economy only slightly contracted in April compared to deeper falls in the previous two months. The manufacturing [..]

Asian Session – Currencies consolidate in quiet session

Posted on May 1, 2013 at 6:15 am GMT

Currency markets were quiet during the Asian session on Wednesday. Most markets are closed, including China, Singapore and Hong Kong, for the May Day public holiday. The economic calendar was light, with the only tier one data being the Chinese Manufacturing PMI. The index fell to 50.6 in April from 50.9 the month before. The data had little impact on markets. A number above 50 indicates expansion. The dollar was little changed and broadly weaker as focus turns to the [..]

US Session – Dollar falls ahead of Fed policy meeting

Posted on April 30, 2013 at 8:22 pm GMT

The dollar was trading weak against most major counterparts on Tuesday as investors were cautious ahead of the FOMC policy announcement on Wednesday. The Federal Reserve is expected to maintain its loose monetary stance and continue with QE (quantitative easing) as the US economy is still recovering. Also weighing on the dollar was data today showing that business activity in the US unexpectedly contracted for the first time in more than three years. The Chicago PMI index missed expectations and [..]

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