May 28, 2014 – The Plot

May 28
2014

Yen Jumps, Defying Analysts

The Japanese yen jumped today even though analysts speculated that the currency should fall because both technical and fundamental indicators provide no support for a rally. Fundamental analysts argue that there are no specific reasons for the yen to rise. Calming of the situation in Ukraine, signs of economic growth in the United States and hopes for China’s government to stimulate growth of the Chinese economy — all these factors switched the Forex market in the risk-on mode, […]

May 28
2014

Dollar Carves Out Gains with Help from Interest Rates Speculations

The US dollar edged higher today even without any important economic releases from the United States. The currency is supported by speculations about a possible interest rate hike from the Federal Reserve this year. The greenback was not able to outperform the Japanese yen. The dollar resumed its rally yesterday and was able to keep the upward momentum on today’s trading session. Atlanta Fed President Dennis Lockhart said yesterday: […]

May 28
2014

Euro Finds Three Month Low, Expected to Slide Further

Euro continues to struggle in Forex trading, with the 18-nation currency hitting a new three month low against the US dollar. The euro has slipped below the 1.3600 level against the US dollar today, even though it has battled back above that mark now, and there are expectations of a deeper slide after next week’s ECB policy meeting. For the last few weeks, European policymakers, particularly ECB President […]

May 28
2014

Loonie Trades Flat Against the Greenback

The Canadian dollar is trading flat against the US dollar today, but it is gaining some ground against its counterparts in Europe. Many traders expect reasonably good news out of Canada later this week, and this is helping the loonie in Forex trading. Many Forex traders are looking ahead to data releases later this week. There are expectations for a slight month over month increase […]

May 28
2014

Aussie’s Rally Fails as Australia’s Leading Index Drops

The Australian dollar dropped today, paring its short-lived rally, as the nation’s leading indicators fell, suggesting that Australia’s economic recovery has not yet gained firm footing. Not all today’s economic data was bad though. The Westpac-Melbourne Institute Leading Index of Economic Activity fell to -1.16 percent in April from +0.03 percent in March. The report said: This is a sharply weaker reading that points to a significant […]

May 28
2014

China’s Growth Loses Momentum, Yuan Slips

The Chinese yuan fell today, demonstrating the biggest drop since March, as the nation’s central bank set the daily fixing lowest since September due to concerns about slowing economic growth. Peopleâs Bank of China Governor Zhou Xiaochuan said this week that the Chinese economy is in a rare and complicated situation. Economic data gave evidences of slowing growth momentum as industrial profits increased 9.6 percent in April, compared to 10.7 […]

May 28
2014

NZ Dollar Drops as Business Confidence Index Falls

The New Zealand dollar dropped today, reversing yesterday’s gains, as the nation’s business confidence index dropped this month. The currency has gone virtually nowhere in the past five trading session, pausing the slide that started this month. The ANZ Business Confidence index fell from 64.8 in April to 53.5 in May. Despite the drop, the report said that investors should not be alarmed yet, making following comments on the data: […]

May 28
2014

Stimulus Talks Continue to Hurt Euro

The euro fell against the US dollar yesterday and continued to drop today as speculations about a probable additional monetary loosening in June make the currency less appealing to Forex traders. European Central Bank President Mario Draghi spoke on Monday, signaling that the central bank is very likely to act in June to bolster the struggling economy of the eurozone. The speech did not have an adverse effect on the euro initially, but the currency started to fall […]

Day: May 28, 2014