The following Forex news reports are the latest developments of the Forex market. The news reports are updated frequently and include all the events that affect the foreign exchange trading industry.
Better than expected labor data which showed that fewer Americans had filed for unemployment relief last week helped to lift the U.S. Dollar as investors consider that the way forward for the Federal Reserve’s tapering plans are more certain.
Demand for the safe haven Japanese Yen increased following the latest economic release out of China which showed that the preliminary factory output in February contracted for the second consecutive month, leaving investors wary that the emerging markets may be on a downward trend.
The Pound Sterling was lower against its main rival, the common currency Euro following the release off a report which showed that inflation in the U.K. fell below the target set forth by the Bank of England.
The Japanese Yen was broadly lower as the Bank of Japan (BOJ) maintained existing monetary policy which calls for continued easing as necessary in order to devalue the Yen if it proves to be appreciating to the detriment of the Japanese economy.
Last week’s unexpectedly disappointing economic data points pushed the U.S. Dollar Index to a 6-week trough and saw the greenback falling broadly in individual trading in Asia.
The U.S. Dollar and the Index which tracks its performance both continue to be under pressure, this time the combined results of unexpectedly poor retail sales data and a rise in unemployment claims.
An unexpected and disappointing labor report from Australia helped to send the Aussie dollar sharply lower and resurrected investor speculation that the Reserve Bank of Australia might now be considering an interest rate cut to help stabilize the Australian economy.
An improvement in recently released trade data from China helped to boost the Australian Dollar to a 1-month peak against its U.S. counterpart.
The U.S. Dollar Index edged lower and held closet to a 2-week trough as investors await the new head of the Federal Reserve Bank’s testimony to glean, perhaps, the future of Quantitative Easing under her rein and the resultant direction of the greenback.
In Monday morning trade, the Japanese Yen held close to its recently struck troughs versus both the Euro and the U.S. Dollar which followed last Friday’s Wall Street rally.
With the ECB decision now out of the way, FX players are waiting only for the U.S. release of private sector jobs growth for the month of January.
As the European Central Bank’s monthly meeting looms, the common currency Euro steadied but held close to a 2-month trough which had been set against the greenback earlier this week.
With emerging markets beginning to stabilize the Japanese Yen eased off of the recently struck multi-month peaks though currency strategists are still hesitant to go long on the USD/JPY pair waiting instead for stronger affirmation that the risk environment has improved.
The U.S. Dollar managed to steady in spite a major selloff in Asian equity markets.
The Eurozone wallowed close to a 10-week trough versus the U.S. Dollar after the release of disappointing inflation data in the Eurozone ignited investor speculation that the central bank might this week decide to provide additional quantitative easing in order to prevent a further slide into deflationary territory.
