Forex news
- The EUR/USD pair declined after a report showed that German sunk into a recession in Q1.
- The economy contracted by 2.2% in the first quarter due to weak machinery investment and private consumption
- The euro also reacted to differences between southern and northern states on post-coronavirus financing
Features & analysis
Latest Forex news
The USD/JPY pair declined from its weekly high of 108.04 to a low of 107.35 last week reflecting the stability of the Japanese yen as global risks emerge. Data from the CFTC also show that hedge funds remain solidly bullish on the Japanese yen. USD/JPY stable as risks emerge The Japanese yen has been relatively stable this year. In total, the currency has gained by about one per cent against the US dollar. In contrast, the euro, sterling, and Aus...
The EUR/USD pair dropped by more than 50 basis points as investors reflected on the minutes of the past ECB meeting. Also, the decline was partly because of the overall weakness of the US dollar, which rose by 35 basis points. EUR/USD reacts to ECB minutes The euro weakened against its major peers after the ECB released the minutes of its meeting held earlier this month. The euro index, which measures the strength of the euro against a basket of...
The USD/MXN pair rose by more than 40 basis points as investors reacted to the falling crude oil prices and the weak retail sales. USD/MXN rises as crude oil price slides Mexico is one of the biggest crude oil producers in the world. The country produces more than 2.4 million barrels of oil every day, making it the 17th biggest oil producers in the world. Most of this oil – about 1.23 million barrels – is exported, bringing the valuable foreign e...
The USD/NOK rose by more than 1.35 per cent as the price of crude oil dropped sharply during the Asian and European sessions. USD/NOK jumps after crude oi price l tumbles Norway is one of the biggest crude oil exporters in Europe. According to Worldometer, the country produces more than 2 million barrels making it the 13th biggest producers. Most of this oil, about 1.7 million barrels, is exported. Therefore, the price of crude oil and the Norweg...
The USD/HKD shot up as the market remained concerned about protests in Hong Kong. Hong Kong stocks too nosedived, with the Hang Seng index, which dropped by more than 4%. USD/HKD rises as Hong Kong crisis escalates The USD/HKD pair rose sharply after the Xi Jinping government said it planned to impose national security in Hong Kong. The reports emerged ahead of the National People’s Congress meeting that is set to start today. Analysts beli...
The US dollar index (DXY) was relatively calm as the market reflected on a slew of weak economic data from the US. US dollar index calm Existing home sales disappoint Existing home sales dropped by 17.8 per cent in April, according to the National Association of Realtors (NAR). That was the worst decline since April 2010, shortly after the past financial crisis. Analysts polled by Bloomberg were expecting the sales to have declined by 18.9 per ce...
The USDTRY pair was relatively calm after the Turkish central bank delivered its interest rate decision. Turkish Central Bank cuts rates The Turkish central bank slashed interest rates for the ninth time this year. The bank, which concluded its two-day meeting today, lowered the one-week repo rate by 50 basis points to 8.25 per cent. Similarly, the bank lowered the overnight borrowing rate from the previous 7.25 per cent to 6.75 per cent. It also...
The EUR/USD was little changed as the market reacted to the mixed manufacturing and services PMI data from Europe. Investors are also optimistic in the funding deal made by Angela Merkel and Emmanuel Macron. Eurozone manufacturing PMI show improvements The manufacturing and services sector in the eurozone improved but remained in the contraction zone in May. Data compiled by IHS Markit showed that the manufacturing PMI increased to 39.5 in May. T...
The USD/JPY pair rose after Japan released weak provisional trade number for April. The market also reacted to the weak manufacturing and service PMI data from the country. USD/JPY Japan manufacturing PMI disappoints Japanese manufacturing is suffocating as the coronavirus pandemic and the state of emergency take a toll on companies. The closely watched Purchasers Manufacturing Index, compiled by Markit and Jibun Bank, declined to 31.7 in May fro...
The AUD/USD pair dropped by more than 0.60 per cent after the latest composite PMI data by Markit. The market is also concerned about the brewing trade conflict between Australia and China. Australia manufacturing and service activity disappoints Business activity in Australia went through significant challenges in May, according to the latest data from Markit and Commonwealth Bank. In May, the flash manufacturing PMI in Australia dropped from 44...
The USD/CAD declined by more than 45 basis points as the market reacted to positive crude oil prices. Investors ignored the weak inflation numbers from Canada. Canada inflation disappoints It seems like all developed economies are facing deflationary pressures. Earlier today, I wrote about the disappointing consumer prices data from the United Kingdom and the eurozone. Canada is doing worse. According to Statistics Canada, the headline consumer p...
The euro index was rose slightly after inflation in the eurozone dropped to the lowest level since 2016. The EUR/USD pair rose by 0.23 per cent while the EUR/GBP rose by 25 basis points. The EUR/JPY rose by 0.14 per cent while the EUR/SEK was little changed. European Union inflation falls Inflation in the eurozone slowed to the lowest level in more than four years and further diverged from the ECB target of 2.0 per cent. Headline consumer prices...
The GBP/USD pair declined slightlyafter the UK inflation declined to its lowest level since February, moving away from the Bank of England (BoE) target of two per cent. This suggests that the BOE will implement negative rates this year. UK CPI data disappoint According to data from the Office of National Statistics (ONS), consumer prices rose by 0.8 per cent from a year ago and declined by -0.2% from March. These figures were below the 0.9 per ce...
The US dollar index (DXY) declined today as the market reacted to testimony by Jerome Powell and Steve Mnuchin in congress. US dollar index reacts to Powell testimony In the testimony, Steve Mnuchin said that his department was continuing to support American businesses and companies during this crisis. He said: “We have issued more than 140 million Economic Impact Payments for over $240 billion to provide relief to millions of Americans. A typica...
The EUR/USD pair added to the gains made yesterday after Angela Merkel and Emmanuel Macron reached a deal to provide more than $546 billion to help the European Union recover from the pandemic. The pair also reacted to the positive sentiment data from Germany. Angela Merkel and Macron reach financing deal The European Union has been hit hard by the current coronavirus pandemic. Its member states like Spain, Italy, France, and Germany are in the t...
The GBP/USD pair rose slightlyafter the Office of National Statistics (ONS) released upbeat March jobs numbers. The pair also reacted to the car registration data by the European Automobile Manufacturers’ Association (ACEA). GBP/USD rises after strong jobs data UK March jobs numbers upbeat The unemployment in the United Kingdom declined to 3.9per cent in March, according to data from the Office of National Statistics (ONS). This was better than t...
The USD/SGD pair dropped as the market reacted to the positive trade numbers from Singapore. The Singapore dollar also rose against other currencies like the Hong Kong dollar and the Malaysian ringgit. Singapore non-oil exports jump Singapore non-oil domestic exports rose by 9.7 per cent in April this year, according to the statistics office. This was the second straight of gains in a period when the world is going through a recession due to the...