Forex News
- Canadian dollar rose against the USD after crude oil prices rose by more than 10%
- Crude oil price is rising as China ramps purchases and after Trump touted a deal between Saudi and Russia
- As the fourth oil producer, oil is important for the Canadian economy and is responsible for about 10% of GDP
Latest Forex News
The China Federation of Logistics and Purchasing (CFLP) released its monthly report on manufacturing and non-manufacturing purchasing managers’ index (PMI) on Tuesday. The data suggested both sectors to have improved in March following a sharp decline in February that was attributed to the widespread Coronavirus that has so far infected more than 788,200 people worldwide and caused over 37,800 deaths. The CFLP revealed China’s manufacturing PMI a...
The euro declined amid some positive Coronavirus news from the European Union. In a report yesterday, the World Health Organization (WHO) said that the Coronavirus outbreak in the region was peaking. The announcement came as the number of new infections in key countries like Italy and Spain started to decline. Indeed, as shown below, the number of new cases in Italy has declined while the number of recoveries has surged. Still, the current lockdo...
The British pound index edged lower as investors started to worry about Coronavirus contagion risks after UK companies started going into administration. BrightHouse, a rent-to-own retailer went into administration a few hours after Italian restaurant, Carluccio’s filed for bankruptcy. The market is concerned that these bankruptcies will continue as the country remains in lockdown. This is because while most retailers are not operating, their cos...
The Federal Statistical Office of Germany released its monthly report on the prelim consumer price index (CPI) on Monday. The data showed annual inflation to have sunk significantly in Germany this month. March’s reading was also recorded sharply lower than the ECB’s (European Central Bank) target for annual inflation. According to economists, March’s data hints at the need for the ECB to resort to further policy measures to protect the economy a...
Amidst the rising pressure on the economy due to the Coronavirus pandemic, China’s Central Bank took a surprise decision of reducing reverse repurchase agreements rate by 20 basis points. The rate cut marked the largest in around 5 years. According to an announcement via its website, the People’s Bank of China (PBOC) reduced the reverse repo rate (7-day) on Monday from 2.40% to 2.20%. An explanation for the move was not given on the website. Cent...
Positive UK mortgage data The British pound pared back earlier losses against the US dollar after the Bank of England (BOE) released positive February mortgage data. The data showed that mortgage approvals rose to 73,500 in February. This was higher than the estimated 68.21k and the previous 71.34k. The number was also the highest it has been since 2014. Meanwhile, the number of mortgages reapprovals rose to 53,400 while the net mortgage borrowin...
The University of Michigan (UoM) released its monthly report on consumer sentiment in March on Friday. The data showed sentiment to have declined to a 3-year low this month ascribed to the Coronavirus pandemic that is weighing heavily on the U.S economy. The UoM’s consumer sentiment index tanked to 89.1 in March; a reading that was last seen in October 2016. In February, sentiment was recorded at a much higher 101. Economists had anticipated the...
The Bank of Canada (BoC) resorted to another emergency rate cut this month announcing a reduction of 50 basis points in its key overnight rate on Friday. The BoC said it was the need of the hour considering the widespread impact of the Coronavirus pandemic on the financial system and the Canadian economy at large. In an emergency policy meeting held on Friday, Canadian lawmakers decided in favor of slashing the overnight interest rate from 0.75%...
The Bureau of Economic Analysis (BEA) released its quarterly report on the U.S GDP. The data showed a 2.1% growth in the U.S economy in 2019’s fourth quarter. According to economists, however, the U.S is now expected to take a few quarters before it posts economic growth again as the sharply rising cases of Coronavirus are likely to hit the U.S GDP hard in 2020. After the 3rd and final evaluation of Q4, the Commerce Department announced no change...
EUR/USD has gained nearly 1.5% higher today in another extremely volatile trading day. The EUR bulls have managed to push the price higher on broader USD weakness, despite the Brussels struggles to come up with a unified approach in dealing with the economic fallout amid the coronavirus outbreak. Fundamental analysis: MPs demand a new EU long-term budget European Union (EU) leaders have failed to agree on the unified approach in dealing with the...
The U.S Department of Labor announced its weekly report on unemployment claims on Thursday. The data showed the jobless claims in the U.S to have climbed over 3 million last week. A sharp increase in unemployment stemmed from the Coronavirus pandemic that pushed businesses into shut down with many of them resorting to massive layoffs. The flu-like virus, as per economists, is likely to break America’s longest employment boom. The Labor Department...
UK’s Monetary Policy Committee (MPC) voted in favor of keeping the official bank rate steady at 0.10% on Thursday. The ongoing Coronavirus pandemic that pushed the government into ordering a countrywide lockdown to minimize the fast-transmission of COVID-19 is weighing heavily on the UK’s economy that is forecast to contract sharply this year. The Bank of England (BoE) said on Thursday that in order to protect the economy against the pandemic, it...
The UK’s Office for National Statistics released its monthly report on retail sales in February on Thursday. The data showed the British retail sector to have performed the weakest in around 7 years in February. Retailers expect an even steeper decline in March as the broader impact of Coronavirus appears in the data. The Statistics department had announced a 0.9% growth in January (year over year). Sales volumes in February, however, were report...
The U.S Census Bureau released its monthly report on new orders for the U.S manufactured durable goods in February on Wednesday. The data showed durable goods orders to have unexpectedly increased in the U.S in February. Due to the strict restrictions from the government directed at minimizing the fast spread of COVID-19, however, analysts expect the demand to go down in the upcoming months that will reflect as a decline in the U.S durable goods...
GBP/USD has surged more than 1% today, in addition to 1.84% gains made yesterday, as the cable continues to push after hitting the multi-decade lows last week. In the meantime, the UK Chancellor Sunak has ruled out direct support to airlines. Fundamental analysis: We won’t be able to save every business, warns Chancellor UK Chancellor Rishi Sunak has issued a warning that the Government won’t be able to save all businesses. He added that his cabi...
IFO revealed the German business climate to have dropped to 86.1 in March amidst the Coronavirus emergency that has disrupted business and is pushing the global economy closer to a recession. The last time German business morale was recorded this down was during the 2009’s global financial crisis. In February, IFO had revealed the German business climate at a much higher 96.0. Economists had expected the business morale to fall steeply to 87.9 in...
The UK’s Office for National Statistics showed inflation in the country to have declined in February on Wednesday. According to economists, February’s data doesn’t reflect the full extent of the Coronavirus pandemic on the UK’s economy and the reading in the subsequent months could be far worse. The Statistics Department revealed the UK’s consumer price index (CPI) to have dropped to 1.7% in February. In January, consumer price inflation was reco...