Day: June 12, 2014

June 12
2014

Loonie Experiences Mixed Trading Day

The Canadian dollar had a mixed trading session today as fundamentals were confusing and did not give a clear direction for the currency to go. Over the longer term, the loonie still maintains its bullish bias against the US dollar and the euro and remains flat versus the Japanese yen. Bank of Canada Governor Steven Poloz was speaking today at the press-conference regarding the Financial System Review, and he was rather optimistic. Poloz said: It […]

Read more
June 12
2014

Dollar Falls vs. Major Peers as US Data Disappoints

The US dollar dropped today as most of economic reports that came out from the United States were rather poor, making market participants question if the US economy is ready for monetary tightening from the Federal Reserve or policy makers will wait before starting interest rate hikes. Unemployment claims increased from 313,000 to 317,000 last week from the week before even though experts promised them […]

Read more
June 12
2014

Won Drops on Concern About Korea’s Recovery

The South Korea fell today as the nation’s central bank left interest rates unchanged and voiced concern about the strength of the currency that may hurt economic growth. The Bank of Korea decided to keep its key interest rate at 2.5 percent during today’s policy meeting. The central bank said in the statement: In Korea, despite exports having sustained their buoyancy the Committee appraises the economic recovery to have shown signs of slowing, as domestic […]

Read more
June 12
2014

Drop of Employment Doesn’t Prevent Aussie’s Rally

The Australian dollar dipped after data showed a drop of employment, but the currency bounced later and trades now above the opening level as the report turned out to be not as bad as it looked at the first glance. Australian employment dropped by 4,800 in May from April on a seasonally adjusted basis, while analysts expected it to rise at the previous month’s rate of 10,300. The unemployment rate remained at 5.8 percent. Yet the report was not […]

Read more
June 12
2014

EUR/USD Pares Decline with Help of Weak US Data

EUR/USD rose today, paring its four-day decline, as data from the United States was mostly bad, including the unexpected increase of jobless claims and weaker-than-expected growth of retail sales. Retail sales grew 0.3% in May, while market participants thought that they would increase at the April’s rate of 0.5%. (Event A on the chart.) Initial jobless claims rose from 313k to 317k last week instead of falling to 306k as was predicted […]

Read more
June 12
2014

Yen Maintains Strength Ahead of BoJ Policy Meeting

The Japanese yen rallied yesterday on speculations that the Bank of Japan will refrain from changing its monetary policy at this week’s meeting. While the currency retreated a bit today, it remains relatively strong. The BoJ started its two-day policy meeting today and will announce its decision tomorrow. It is expected that the central bank will not expand its stimulus program. If this is the case […]

Read more
June 12
2014

New Zealand Dollar Surges as RBNZ Hikes Interest Rate

The Reserve Bank of New Zealand did not disappoint Forex market participants, raising its Official Cash Rate today. The New Zealand dollar soared as a result, rising against the euro for the seventh consecutive trading session, even though such move was widely expected. The RBNZ increased its main interest rate by 25 basis points to 3.25 percent as was expected. The rate statement was not particularly favorable to the kiwi […]

Read more