EUR/USD suffered a dismal week, plunging 2.33%. The euro broke below the 1.05 line on Thursday but has managed to recover.
The ECB doesn't meet until June, but policy makers will be closely monitoring eurozone inflation, which continues to climb. It was only a few months ago that ECB President Lagarde was dismissive about rising inflation, saying that it was a...
The euro has bounced back on Friday with strong gains, ending a nasty 6-day losing streak. In the European session, EUR/USD is trading at 1.0565, up 0.64% on the day.
It has been a rough road for the euro, which hit a 5-year low this week as it broke below the 1.05 line. We're seeing a correction today, primarily due to solid GDP data out of Germany and the...
The misery continues for the New Zealand dollar, which is down almost 1% on Thursday. NZD/USD has fallen below the 0.65 level and has plunged 6.54% in the month of April.
ANZ Business Confidence was unchanged in April, with a reading of -42.0. That means close to half of New Zealand businesses are pessimistic about the economic outlook over the next 12 months....
The Japanese yen has reversed directions on Wednesday and is sharply lower. USD/JPY is trading at 128.54 in the North American session, up 1.04% on the day.
The Bank of Japan holds its policy meeting later today, but investors shouldn't expect any major moves. The central bank has done little more than jawbone as the yen continues to fall. It's been a miserable...
The Canadian dollar has been on a nasty slide, falling around 2% since Thursday. There are no Canadian releases until GDP on Friday, which means that US releases during the week will have a significant impact on the movement of USD/CAD.
Bank of Canada Governor Tiff Macklem can usually be counted on for using clear and understandable language, which I'm always...
The euro has started the week with sharp losses as it struggles to stay above the 1.07 line. In the North American session, EUR/USD is trading at 1.0717, down 0.73% on the day.
On Sunday, President Emmanuel Macron won a decisive victory over Marie Le Pen of the extreme right, by a score of 58% to 42%. The markets reacted with relief rather than elation, given...
Or could we finally see a bearish breakout?
The recent rally in gold appeared to be building momentum but just as it did, it ran into firm resistance around $2,000 and it's been downhill since then.
The yellow metal may have been supported by higher inflation expectations but yields have continued to rise as traders price in more rate hikes on the back of some...
The Canadian dollar is up sharply on Wednesday, as Canada's inflation report was hotter than expected. In the North American session, USD/CAD is trading at 1.2519, down 0.74% on the day.
Canada's CPI for March jumped 6.7% YoY, a full percentage point higher than the 5.7% gain in February. On a monthly basis, inflation rose 1.4%, up from 1.0% prior. Both the...
The RBA sent a hawkish message to the markets, as the minutes from the April meeting provided a strong hint that a rate hike is coming sooner than had been expected. The minutes cited rising inflation and a tightening labor markets as developments that have "brought forward the likely timing of the first increase in interest rates".
The last time the RBA raised...
It was another rough week at the office for the Japanese yen, as USD/JPY fell 1.67%. The crumpling yen hasn't eked out a daily gain since March and has extended its losses today. In the North American session, USD/JPY is trading at 126.88, up 0.42% on the day.
The yen is essentially at the mercy of the US/Japan rate differential, and with that differential...
The Australian dollar has extended its losses today, as AUD/USD trades just above the 0.74 line in the European session.
It has been a rough stretch for the currency, which has managed just one winning session since April 5th. The Australian dollar has been hurt by the Fed-powered US dollar as well as concerns about China's growth, as the country grapples with an...
Australia's employment report was respectable, and the Australian dollar's reaction was muted. The economy created 17.9 thousand new jobs in March, down from 77.4 prior and shy of the estimate of 40.0 thousand. The unemployment rate remained at a sizzling 4.0%, the lowest since 2008.
Today's numbers are unlikely to shed much light on the timeline for the RBA's...
The RBNZ came out swinging on Wednesday, as it hiked the Cash Rate to 1.50%, with an oversized hike of 50-basis points. Ordinarily, a sharp rate hike by a central bank would prop up the local currency, but that was not the case today. The central bank seemed to hit the right buttons to show its hawkish stance, with its largest rate hike since April 2000....
German data was in the spotlight on Wednesday, with the release of German inflation and ZEW Economic Sentiment. The numbers were worrying, but the euro's response was muted, as the currency trades in the mid-1.08 range.
German CPI for March came in as expected, at 7.3% YoY. Still, this was a large jump from the 5.1% gain in February and marks the highest...
Gold has been in consolidation for days but it may be breaking out of this at the end of the week.
The range has been tightening in recent days, even at a time when other markets were seeing plenty of volatility on the back of another hawkish move by the Federal Reserve.
That at one time would have been a negative for gold as higher rates are typically...
The New Zealand dollar has extended its losses on Thursday and dropped below the 69 line. In the North American session, NZD/USD is trading at 0.6887, down 0.42% on the day.
The hawkishness of the FOMC minutes was not a surprise, given that the markets had heard this from Fed members George and Brainard a day earlier. Still, a hawkish Fed that is accelerating its...
Bitcoin appeared to have made a very bullish move last week when it finally broke above $45,500 but since then, it's all been downhill.
Sentiment in the broader markets has dipped in recent days and bitcoin has suffered as a result. Even prior to this, it failed to capitalise on the initial breakout which may have been a sign of what was to come.
While the trend...
The New Zealand dollar continues to rally and is up 0.82% this week. Earlier in the day, NZD/USD punched above the symbolic 70 line and rose to 0.7034, its highest level since November 2021, before retreating lower.
The US Services PMI for March pointed to continuing expansion, with a reading of 58.3. This was shy of the consensus of 58.9 but an improvement from...
