More From David Meyer
Political Jitters Halt Gains in Brazilian Real
The Brazilian real exhibited a gain against the US dollar on October 6, 2015, on an advancement in crude and commodity prices globally.
Turkey Shoots Down Russian Warplane, Sparking Global Market Turmoil
Global markets fell as Turkey shot down a Russian warplane near the Turkey-Syria border today. Turkish officials alleged that they repeatedly warned the jet to leave Turkish airspace.
Mixed Data Release Regarding Durable Goods, Unemployment Claims
The US Dollar Index, which measures the strength of the US dollar against other major currencies, rose to a high of 97.69 in early trading after the release of the durable goods data. The US Dollar Index was trading flat as of 12:30 PM EST.
US Dollar Index Fell on Weak Economic Data
The US Dollar Index fell to 93.8 before closing on October 14. It fell due to the release of weak domestic data in the form of the PPI and retail sales.
Brazilian Real Drops as Political Risk Returns
Among the Latin-America–focused ETFs, the iShares MSCI Brazil Capped ETF (EWZ) fell 2.5% on May 23, which was in sync with the fall in the real.
July’s US Retail Sales Meet Estimates
On August 13, 2015, US retail sales came in at expected levels for July. The increase in the retail sector was broad-based.
Investors Turn to Emerging Markets, Odds of a Rate Hike Fall
Investors seem to be favoring emerging markets as the hope of a rate hike by the Fed in September diminished. EWZ rose by 1.5% on August 15.
The US Dollar Index Was Flat after a Mixed Data Release
The US dollar index was trading on a flattish note on January 20, with a slight rise of 0.10% for the day. In the end, the index closed the day at 99.09.
US Consumer Price Inflation Remains Unchanged
The CPI (consumer price inflation), published by the U.S. Bureau of Labor Statistics, remained unchanged in July. The energy index fell by 1.6% in July.
The Pound Falls as UK Manufacturing Production Disappoints
The pound fell to a low of 1.54 after the release of production data, which was below the forecast.
Nikkei 225 Drags Asian Markets Down, Falling 3.1%
Major Asian markets (AAXJ) were trading lower on May 2, 2016, after negative sentiments from the previous week continued.
The Euro Falls Sharply as the Fed Is Open to a December Hike
The euro–US dollar currency pair fell 1.2% on October 28, 2015, as the Fed delayed a rate hike and stated that it’s open to considering a rate hike in December.
How Did Mario Draghi’s Statement Impact the Euro?
Mario Draghi was less dovish in the post monetary policy press conference. The press conference started 45 minutes after the monetary policy statement.
US Markets Flat as Unemployment Claims Rise
The US dollar index was trading on a lower note on March 31, 2016, at 2:30 PM EST as unemployment added further uncertainty to the US rate hike.
How RBA and RBI Monetary Policies Are Impacting Asian Indexes
Asian indexes were trading on a negative trajectory on April 5 as the monetary policies of the RBA and the RBI failed to inspire Asian markets.
Russian GDP Falls before the Central Bank’s Policy Meeting
The Russian economy fell by 0.5% on an annual basis in June—in line with market expectations and against a downwardly revised decline of 0.6% in May.
Malaysian Ringgit Drops as Economy Slows to Two-Year Low
The Malaysian ringgit fell against the US dollar on November 13, 2015, for the third consecutive session as Malaysia’s GDP for the third quarter indicated the slowest growth since the second quarter of 2013.
Israeli Shekel Rose, Central Bank Kept Rates Unchanged
The Israeli shekel rose against the US dollar on November 23, 2015. The central bank of Israel kept the interest rates unchanged at 0.1%.
Brazilian Real Appreciated as Central Bank Maintained Current Rates
The Brazilian real appreciated against the US dollar on October 21, 2015, after following a negative trajectory for two subsequent sessions.
German July Business Climate Index Beats Forecasts
The German IFO Business Climate Index released on a positive note in July at 108 points. It was above forecasts with expectations around 107.5 levels.
Why the Russian Index MICEX Is Trading at a Record High
The Russian index, MICEX, rose to an all-time high—helped by investors turning their attention to how the rebound in crude oil prices can be best captured.
Thai Baht Rose Due to Strong Economic Growth
The Thai baht appreciated against the US dollar on November 16. Economic growth showed signs of a turnaround. The GDP rose at the fastest quarterly pace this year.
Will the US Dollar Index Strengthen before the FOMC Statement?
Asian currencies traded lower against the dollar ahead of the FOMC statement. The US dollar-Japanese yen currency pair rose by 0.80% at 6:00 AM EST on July 27.
Taiwan’s Economy Expands, Russia Keeps Rates Unchanged
Taiwan’s economy came out of the recessionary phase. The GDP for 2Q16 grew by 0.69%—compared to a contraction of 0.68% in the previous quarter.
The Argentine Peso Tanks as Government Fulfils the Promise of Freefloat
The US dollar and Argentinian peso currency pair, which is inversely related to the Argentinian peso, rose by 35.6% on December 17, 2015.
Does the Rising US Dollar Index Signify an Upcoming Trend Reversal and Domino Effect?
On June 9, the US dollar index, which measures the strength of the US dollar against a basket of major currencies, ended a three-day loosing streak.
Philippine Peso Gained as the Global Markets Calmed Down
The Philippine peso gained against the US dollar on January 5, 2016. It recorded losses in the previous session due to outflows from emerging markets.
Analyzing the BoJ’s Monetary Policy Enhancement Measures
The BoJ’s monetary policy was the most awaited macro event this week. It was the first major central bank to expand its easing program after the Brexit vote.
Notable Gainers and Losers among Major Currency Pairs
Major Asian currency pairs were trading on a negative bias against the US dollar on August 12, 2016. The US dollar broadly rose against the other currencies.
Is the Egyptian Pound Set for More Devaluation?
The IMF announced that it would be lending $12 billion to help revive the Egyptian economy and help the central bank stabilize the Egyptian pound.
Why the Bank of England Decided to Keep Rates Unchanged
The Bank of England kept interest rates unchanged at 0.5%. The asset purchase program was also unchanged at 375 billion pounds.
Markets Extend Rally on Stimulus Hopes, FTSE 100 Remains Flat
The FTSE 100, the United Kingdom’s major index (EWU), has been on rising trend after the sharp fall for two days following the Brexit referendum.
Global Central Bank Leaders Meet to Calm Market Jitters
Central banks met in Basel during the Bank of International Settlement’s annual meeting. They discussed how to control the impact of Brexit on the global economy.
What Can Investors Expect from the US Dollar in 2016?
The cautious stance maintained by Fed Chair Janet Yellen allowed less appreciation in the US dollar after the monetary policy meeting.
Why Did Manufacturing Activity Slow in the Eurozone?
The manufacturing PMI in the Eurozone (EZU) fell to 52.0 in July 2016 from 52.8 in June. It was slightly above the estimated forecasts of 51.9.
Chilean Peso Rallies as Central Bank Keeps Rates Unchanged
The Chilean peso gained against the US dollar on February 12 on the back of the unchanged monetary policy by its central bank and a surge in commodities.
Sharp Fall in Crude Oil Price Dictate the Currencies Markets
Looking at the performance of the major commodity-driven currencies on July 25, the Nigerian naira was the biggest casualty.
Japanese Yen Rose on Positive GDP Numbers
The Japanese yen gained early on December 8, 2015, as GDP (gross domestic product) figures were upwardly revised.
Asian Indices Remain Mixed, European Counterparts Soar
Asian indices were trading on a mixed note on March 9 as the fall in Chinese and Japanese indices were offset by rises in Indian and Australian ones.
Why Did Bank Indonesia Keep Rates Constant?
Bank Indonesia kept its benchmark rate unchanged at 6.5% during the monetary policy meeting on July 21 amid expectations of another round of easing.
Why Employment Numbers Are this Week’s Center of Attention
Strong non-farm employment required to maintain any rate hike hopes Non-farm employment changes are one of the most important indicators the US Fed considers in deciding on monetary policy. May non-farm employment changes hit a multi-year low, which took away all probabilities of a June hike. Check out the following article for further detail on May’s […]
Swedish Krona Gains on Positive Growth Figures
The Swedish krona gained by more than 1.5% against the US dollar and 1.0% against the euro on September 11, 2015, as the economy grew at a faster rate than expected in 2Q15.
British Pound Rallies on Strong Inflation Numbers
On August 18, the annualized CPI showed an increase of 0.1% and beat the forecasts. The clothing and footwear sector drove the increase in inflation.
US Non-Farm Productivity Fell despite Forecasts of a Rise
The BLS published the non-farm productivity for a quarter-over-quarter basis on August 9. The non-farm productivity fell well below forecasts in 2Q16.
Can Investors Keep Forecasting the Final Non-Farm Payroll Correctly?
ADP’s June non-farm payroll numbers indicated an increase of 172,000 jobs in the private sector. ADP’s non-farm payrolls have been mostly accurate.
Investor Takeaways from the July ADP Non-Farm Payrolls
ADP published the ADP non-farm payrolls for July on August 3. It acts as a prelude to the Bureau of Labor Statistics’ Final NFP (non-farm payroll) numbers.
Indonesian Rupiah Traded Lower, Interest Rates Didn’t Change
The rupiah was trading in a negative trajectory compared to the US dollar on November 17. Bank Indonesia decided to keep the interest rates unchanged.
Why the Euro Slumped on Dovish ECB Statement
The euro fell by more than 2% against the US dollar after the ECB (European Central Bank) meeting on October 22, 2015.
Norwegian Krone Extended Appreciation Trend Last Week
The Norwegian krone appreciated against the US dollar on October 9, 2015, as a result of positive inflation data.
UK GDP for 2Q15 Accelerates for 10th Consecutive Quarter
UK GDP improved 2.6% at the end of the second quarter. According to economists in a Bloomberg survey, UK GDP is expected to rise by 2.5% in 2015 and 2.3% in 2016.
UK Construction PMI Disappoints: Currency Impact
Construction PMI for the United Kingdom, published by Markit, fell to a reading of 57.1 for July 2015, below estimates of 58.4 and a June reading of 58.1.
Russian GDP Continues to Fall, Taiwan’s Export Orders Drop
The Russian economy fell by 0.6% on an annual basis in July—compared to Market expectations of a 1.0% decline and lower than a decline of 0.5% in June.
Why the High Volatility of the Japanese Yen in Recent Months?
The US dollar–Japanese yen currency pair has been one of the most volatile developed country currencies in the past six months. The Japanese yen saw heavy appreciation in August.
Russian Ruble Fell as the GDP Reported an Economic Contraction
The Russian ruble fell drastically by almost 2% against the US dollar on November 12, 2015. There was a contraction in the GDP growth in 3Q15.
Danish Krone Fell and Inflation Was below the Forecasts
The Danish krone fell against the US dollar on November 10, 2015. The inflation figures for October were below the expectations.
Indonesian Rupiah Fell Due to the Jakarta Attack and Rate Cut
The Indonesian rupiah fell against the US dollar on January 14, 2016, after a terrorist bomb exploded in the capital city of Jakarta.
Latin American Markets Trade Positively: How Did It Impact ETFs?
Critical Latin American indexes were trading on a positive note on February 29, 2016.
Pound Sterling Rose Slightly Due to the Sustained Euro Sell-Off
The pound sterling ended on a slightly positive note against the US dollar on November 17, even though the inflation levels fell on an annual basis in October.
Outlook Projections: IMF Cuts Global Growth Forecasts
The IMF cut its global economic growth forecasts, according to the latest IMF World Economic Output Update dated July 19. The cut in forecasts was expected.
Major Movers of the Financial Markets in the Past 20 Years: Part 2
The global financial crisis of 2008 proved to be the major mover of the financial markets in the last 20 years. Internet companies and the banking sector took a beating.
Taiwan’s Economy Expands, Bank Indonesia Keeps Rates Unchanged
Taiwan’s economy rose by 0.7% on an annual basis in 2Q16—compared to a contraction of 0.29% in the previous quarter and slightly above estimated forecasts.
Asian Indexes Were Subdued Except for Oceania Markets
Major Asian markets were trading lower on April 29. They were subdued after Japanese monetary policy inaction continued to weigh markets down.
US Dollar Index Ends Positive for the First Time in the Week
The US dollar index, which measures the dollar against other major currencies, was trading on a negative trajectory in the week ending February 12.
Asian Markets Trade Lower, ECB’s Policy Falls Short of Expectations
Key Asian indexes (AAXJ) were trading lower on July 22 as the ECB’s (European Central Bank) monetary policy disappointed the global market.
Why the FOMC, BoJ, and EBA Will Drive Markets This Week
In terms of the major macro data release from the United States (VOO) (QQQ), it would be the FOMC monetary policy release on July 27. 2016.
Weak Domestic Data: How Was the US Dollar Affected?
The US Dollar Index, which measures the strength of the US dollar against other major currencies, was trading on a flat note on February 29, 2016.
Japanese Trade Surplus Rose in June, Imports Fell More than Exports
The trade surplus for Japan increased to 692.8 billion yen for June—compared to a deficit of 60.9 billion yen in the same month last year.
Canadian Dollar Sees Sharp Appreciation, Bank of Canada Keeps Rate Unchanged
The US dollar and Canadian dollar currency pair, which is inversely related to the Canadian dollar, fell about 1.3% below opening levels on March 9.
Spread Reducing between Onshore and Offshore Yuan
The spread between the offshore and onshore yuan creates arbitrage opportunities for traders as the value diverges between the two currencies.
Swedish Krona and Danish Krone Depreciate after Inflation Reports
The Swedish krona depreciated against the US dollar by more than 1% on December 10, 2015, as inflation levels released below estimates for November.
Indian Rupee Falls to a 23-Month Low, Third Consecutive Fall
The Indian rupee or INR continued a steep downward slide this week as the USD-INR pair hit the psychological barrier of 65.00 on August 12, 2015.
Why Are Global Markets Range Bound?
The contrasting movement among the global markets was primarily due to caution ahead of the Bank of England’s monetary policy release on July 14.
Russian Ruble Fell against the US Dollar, Policy Didn’t Change
The ruble fell against the US dollar on December 11, 2015, after a free fall in crude prices globally. Higher inflation levels have been hurting the economy.
Why Are Falling Copper Prices Pressuring the Chilean Peso?
Copper futures prices fell by 1.5% on August 22, 2016. The Chilean peso has a high correlation to copper prices—copper is Chile’s major export.
The Taiwan Dollar Keels as Taiwanese Central Bank Cuts Rates
The Taiwan dollar depreciated against the US dollar on December 17, 2015, as the Taiwan Central Bank cut interest rates for the second time in three months.
European Markets Carry over Sentiments from Previous Week
Critical European markets continued their upward trajectory on April 11 and looked as if they were picking up where they left off on Friday, April 8.
India, South Korea to Foster Bilateral Trade, Singapore Trade Surplus Up
In order to strengthen bilateral ties between India and South Korea, there was a review meeting to discuss the India–South Korea free trade agreement, also known as the Comprehensive Economic Partnership Agreement.
The People’s Bank of China Surprises Currency Markets
The Chinese yuan depreciated by 1.8% on August 11, 2015, as the People’s Bank of China (PBOC) aimed to boost the depressed economy and push exports.
Colombian Peso Gains on Macro Data Releases
The Colombian peso rose by 1.96% against the US dollar on September 16, 2015, as retail sales and industrial production levels exceeded forecasts for July.
With US Market Sentiment High, Why Did Manufacturing PMI Fall?
The manufacturing PMI (Purchasing Managers’ Index) published by the Institute for Supply Management fell in April to 50.8. That compares to 51.8 in March and expectations of 51.4.
Australian Dollar Soared Due to Strong Jobs Data
The Australian dollar-US dollar currency pair continued on an upward trajectory on November 12, 2015. The pair ended the day at 0.71 levels.
RBI Cuts Rates by 50 Basis Points to 4.5-Year Low of 6.75%
The Reserve Bank of India (or RBI) surprised market participants and commercial banks by cutting interest rates by 50 basis points in its monetary policy review on September 29, 2015.
Non-Farm Payroll Soars, Wage Growth Causes Concern
The non-farm payroll report for February didn’t give any major direction to the Market. The unemployment rate remained at a multiyear low of 4.9%.
Canadian Dollar Fell on Political Uncertainty and Macro Data
The US dollar-Canadian dollar pair, which is inversely related to the Canadian dollar, rose as the markets awaited election results.
Turkish Lira Sinks to Record Lows against the US Dollar
The Turkish lira fell to historical lows against the US dollar to 2.87 on August 17, 2015. The currency was caught in a heavy sell-off experienced by major emerging markets.
Bank of Japan Surprised the Markets with a Negative Interest Rate
The US dollar-Japanese yen currency pair is inversely related to the Japanese yen. It rose to a high of 121.68 after the BoJ’s (Bank of Japan) monetary policy.
How Does the Indian Rupee Compare Alongside Its Peers?
The Indian rupee has crossed 2.5-year lows as the US dollar and Indian rupee currency pair crossed the 67 handle after the close of the trading session.
What’s Driving UK and New Zealand Outperformance?
Major European indexes were mostly trading on a negative bias on June 8, 2016. In contrast, the UK FTSE 100 rose 0.27%.
Gold SPDRs Fall as US Fed Members Turn Hawkish in Rate Hikes
Gold prices retreated following the rise in the US dollar index. Gold had been gaining traction earlier last week following a dovish report by Janet Yellen, the US Federal Reserve chairperson.
Banking SPDRs Got a Boost while Utility ETFs Traded Lower
The 4Q15 GDP increased at an annual rate of 1.0% against a forecast of 0.4%. The banking sector took positive cues from the GDP report with major gains in banking stocks.
Germany’s GDP Meets Consensus, EWG Trades Lower
Germany’s economy grew at an annual pace of 2.1% in 4Q15—in line with estimated forecasts and above growth of 1.8% in the previous quarter.
Brazilian Markets Get Ready for Impeachment Vote
The Brazilian BM&F Bovespa SA and the Mexican IPC index fell 0.07% and 0.26%, respectively.
German GDP Release Is Strong, DAX Leads European Market
Destatis reported that the German GDP rose at a pace of 0.7% on a quarter-over-quarter basis. The growth was primarily due to the increase in domestic demand.
Brazilian Real Suffers Heavy Fall after Central Bank Rate Decision
The Brazilian Central Bank’s monetary policy committee decided to keep the benchmark interest rate unchanged at 14.3% on January 21, 2016.
Australian Dollar Rises on Strong Growth in Consumer Sentiment
The Australian dollar–US dollar currency pair rose to a high of close to 0.708 yesterday before closing the day at 0.706. The pair rose by about 0.4% on the day.
African Central Banks Tighten Policy Rates to Counter Inflation
The South African Reserve Bank increased policy rates by 25 basis points to 7.0% on March 17, 2016, as Governor Lesetja Kganyago expressed concern over the recent sluggish economic growth in South Africa.
ECB Leaves Rates Unchanged, Stimulus Levels Still Constant
The ECB (European Central Bank) kept interest rates unchanged at 0% on June 2, 2016. Mario Draghi, president of the ECB, hinted at optimism for growth in the Eurozone economy.
Bank of England Is Expected to Keep Rates Constant
Weakness in the pound will give some respite to the BoE (Bank of England) ahead of its monetary policy review on January 13, 2016.
US Dollar Weakens as Yellen Voices Rate Hike Concerns, Gold Spikes
US Federal Reserve Chair Janet Yellen delivered a dovish statement about further rate hikes. Yellen expressed concerns over global economic growth.
Why Did the US Dollar Index Continue to Fall?
The US Dollar Index measures the strength of the dollar against other major currencies. It continued its downward trajectory on February 4, 2016.