The Japanese yen is slightly lower at the start of the week. In the Asian session, the yen fell as low as 131.35, which marked a 20-year low.
The speed of the Japanese yen's depreciation has been remarkable, falling 12% against the US dollar in just three months. The formula for the yen's slide has been relatively simple - US Treasuries have been moving higher,...
The British pound has stabilized on Friday, after sustaining huge losses a day earlier. GBP/USD is trading at 1.2342 in the European session, down 0.11%. Earlier, the currency fell to 1.2276, its lowest level since June 2020.
The BoE dutifully raised interest rates at its meeting on Thursday, but the market reception was a chilly one. GBP/USD plummeted a...
The British pound is fading badly on Thursday. GBP/USD has dropped a staggering 2.15% today and has fallen below the 1.24 line for the first time since July 2020. After the BoE decision, market focus has shifted to the elections in Northern Ireland later today. A Sinn Fein victory could weigh on the wobbly pound.
The BoE raised interest rates for a fourth...
The New Zealand dollar is in positive territory on Wednesday, as the currency looks for its first winning session since April 20th.
The New Zealand labour market remains robust, as confirmed by the Q1 employment report. The unemployment rate remained at a record low of 3.2%, matching expectations. Employment growth fell to 2.9%, (3.1% exp.), which was down from...
It was another tough week for the Australian dollar, as AUD/USD fell 2.53%. In the European session, AUD/USD is trading quietly at 0.7046.
The RBA will be in the spotlight, as it holds its policy meeting on Tuesday. This meeting is live, as it's unclear what policy makers have planned. There's little doubt that the RBA is poised to embark on a rate-hike cycle,...
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....
