Posts Tagged ‘Federal reserve’

The pound continued its downwards run on the US Dollar in this week’s forex trading, largely thanks to the release of mediocre Construction PMIs for December 2016. The PMIs measure activity and investment in the sector and are a key indicator of future economic growth.

The news comes as markets nervously await the triggering of Article 50, the device that formally begins Britain’s exit from the European Union. The risk of a second Scottish independence referendum is further devaluing Sterling, with Scottish First Minister Nicola Sturgeon appearing increasingly committed to separation from the UK.
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Sterling steadied on Monday (September 12) after its first week of losses in four, with traders debating whether the currency had topped out for the moment as they awaited a speech by U.S. Federal Reserve board member Lael Brainard.

The pound dipped last week against the dollar and euro but has broadly done well in the past month as a handful of economic indicators suggested the UK economy was holding up better than expected after June’s vote to leave the European Union.

It was up roughly 0.3 percent at $1.3304 and 84.37 pence per euro by 3.30pm on Monday (September 12).

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The yen strengthened beyond 100 per dollar for a second time this week as the U.S. currency’s bid to break out from a three-month low stalled after Federal Reserve minutes indicated officials were divided over the urgency to raise interest rates.

A gauge of the dollar has fallen more than 5 per cent this year as investors bet the Fed will raise interest rates at most once this year, compared with policy makers’ forecasts at the start of 2016 for four increases.

That means the U.S. central bank is less likely to diverge from the Bank of Japan and European Central Bank, which are boosting stimulus to spur flagging growth.

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Financial researchers have indicated that trading across all G10 currencies is similar to the type of trading conducted throughout recession periods. The G10 currencies are the most widely traded globally, these are:

All eyes within the online Forex trading market have been focused upon the performance of the dollar in relation to the recent interest rate hike enacted by the Federal Reserve. What is interesting to note is that many investors expected the value of this currency to strengthen significantly when compared to major counterparts such as the pound and the euro.

After a short and somewhat disappointing rally, the dollar has failed to exhibit any real strength. Many Forex analysts believe that this lack of upward momentum signals the continued sensitivity of this currency; particularly in terms of the final two weeks of 2015. However, there may be another reason why the dollar is failing to perform even while the price of commodities continues to fall.
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The latest round of online forex trading news highlights the continued fact that traders are adopting a “watch and wait” approach in terms of any significant movements. Part of the reason for this strategy is that there is relatively little data expected to be released over the next few days.

If anything, the details which have emerged are far from promising. Once again, economic figures released from China have echoed weakness while the recent sell-off in oil (regardless of short-term technical gains) highlights that markets are still in a sluggish position.
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A considerable amount of attention by online Forex traders has centred around the relationship between the United States dollar and the euro. There continues to be a significant amount of speculation in regards to the monetary strategies employed by the Federal Reserve in relation to the actions of the ECB.

In particular, surprisingly robust employment figures out of the United States have hinted that the Fed may hike interest rates in December.
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As the week begins, Gold is still trading within a narrow range while staying under the $1190 resistance.

Supported from $1180, online forex trading will potentially see similar prices as last week where gold had support at $1180 and rose to a $1200 resistance.

The trend for the previous two months has been an attraction to the $1200 resistance, which is a key level.

Two weeks ago, the price on Gold fell through this level and down to $1170, the lowest in six weeks. Overall, though, Gold has tended to gravitate to $1200.
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The US Labor Department today announced that nonfarm payroll jobs increased by 192.000 last month. However, in spite of this seemingly positive news, the dollar index slipped back 0.07%.

The index is made up of the six major currencies against which the dollar is traded.

The fall can perhaps be partially attributed to the fact that although the numbers were positive, investors were hoping for even stronger job figures; the buzz in advance of the announcement was that 200,000 jobs would have been added in the last month.

Notwithstanding today’s fall, the index has still shown an overall rise over the course of this past week, in keeping with the upward trend for the dollar since the middle of March.
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In this week’s recent Forex trading developments, it seems that risk aversion is on the minds of most investors.

There are several factors to consider when examining how online Forex markets may respond in the weeks ahead.

First and foremost, the next few days will be rather quiet in the United States. However, the presidents of the Chicago and Richmond subsidiaries of the Federal Reserve are said to be speaking soon. Many online Forex traders feel that they may hint that the latest round of QE asset purchases will be slowing.
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Yesterday, Tuesday the 25th of June 2013 reported an increase in American Stock exchange indices.

Daily results of key american stock exchanges such as the Dow Jones, the S&P 500 and Nasdaq would eventually arrive at a positive of 0,69%, 0,95% and 0,82% respectively.
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The online forex trading new on Monday saw the dollar managing to surpass the yen for the first time in five trading sessions, which is welcome news to a number of investors.

This relatively expected rise took place as there was a substantial gain in the manufacturing sector for the state of New York, which has generally seen favourable results in the month of June. Though we are still in the middle of the month, the trends show promise for future investors in the months to come.
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This week’s online Forex trading news has been highlighted primarily by the fiscal conditions currently underpinning the Eurozone, with a moderate consideration regarding investors’ stances on the US dollar.

While the primary concern is the United States government’s approach to the looming deficit cliff, the Federal Reserve seems to have made progress towards the latter part of the week which will help bridge the gap between the democrats and republicans. However, in Europe near term worries continue to daunt any real gains in the value of the Euro.
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