Day: April 5, 2016

April 5
2016

Japanese Yen Remains Among Strongest Currencies

The Japanese yen remains one of the strongest currencies (if not the strongest) as risk aversion plagues the Forex market, increasing the attractiveness of the currency in its role of a safe haven. There were quite a few reasons for the yen to rally. The persisting concerns about global growth (as was highlighted in the speech of IMF chief Christine Lagarde) was one of them. The drop of global stocks was another. The risk-adverse sentiment made commodity currencies weaker. Conversely, […]

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April 5
2016

EUR/USD Drops After US Services Data, Attempts to Recover

EUR/USD is trading lower today as the positive reports about US services sector bolstered the dollar against the euro. Yet as of now, the currency pair is trying to recover as not all of the US data was good. The trade balance, for example, worsened more than analysts had predicted. Trade balance deficit was $47.1 billion in February, up $1.2 billion from $45.9 billion in January, revised. That is compared […]

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April 5
2016

Canadian Dollar Slides, Attempts to Rebound

The Canadian dollar fell today after the nation’s trade balance worsened unexpectedly. The currency is trying to regain its footing with the help of crude oil rally. Canada’s trade deficit widened from C$628 million in January to C$1.9 billion in February. It was a total surprise to economists who had promised the trade balance to turn into a surplus of C$0.9 billion. There is a hope for the loonie to rebound with the help of crude […]

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April 5
2016

Dollar Index Gains as Traders Shun Riskier Assets

Dollar index is heading higher today as traders shun riskier assets. Stocks are dropping, as are oil prices. Traders are turning away from riskier assets in favor of safe havens, and that is helping the greenback to some degree. US dollar is higher against high beta currencies like the euro and the pound today as risk aversion sets in. Stocks and oil are lower around the world, and there […]

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April 5
2016

Homebuilding Data, EU Referendum Uncertainty Weigh on Sterling

After showing some strength recently, UK pound is once again on the back foot. Concerns about the latest homebuilding data are weighing on the sterling, as are worries about what will happen with the upcoming EU referendum. Sterling got a bit of a boost not too long ago, but those gains are fading as concerns about what’s next for the United Kingdom come into focus. Construction data indicates […]

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April 5
2016

Sterling Dips After Release of Markit Services PMI

The Great Britain pound dipped after the release of the report about the services sector even though the indicator has improved. Analysts explain the poor reaction of the currency by the fact that expansion of the service industries remains sluggish even after the acceleration. The Markit/CIPS UK Services PMI rose to 53.7 in March, from February’s 35-month low of 52.7. Nevertheless, the quarterly growth was slowest since the first three months of 2013. The situation reminds yesterday’s […]

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April 5
2016

Australian Dollar Suffers from Surprisingly Poor Economic Data

The Australian dollar sank during the Tuesday’s session. While the policy meeting of the Reserve Bank of Australia did not provide any surprise, macroeconomic data released from Australia was unexpectedly poor. The RBA kept its key interest rate at 2%, surprising no one, but mentioned again that there is “scope for easier policy, should that be appropriate to lend support to demand.” The negative surprise came from […]

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