Currencies

The pair comes from an impressive October, which culminated to 4-year highs, but has been facing some headwinds after that and the current month is mixed, trading below the aforementioned levels

The US Federal Reserve announced on Wednesday the tapering of its Quantitative Easing program (QE) by $15 billion/month, to begin later in November. However, this was largely dovish, as the bank did not commit to the tapering pace beyond December and did not link the unwinding its asset purchases with future rate hikes, delivering overall the minimum of what was expected. The US Dollar dropped on the news, sending the…

The US Federal Reserve maintained rates at 0-0.25% on Wednesday and announced a $15 billion/month reduction in asset purchases, to begin within this month - $10 billion will be Treasury securities and $5 billion will be mortgage backed securities

Past performance is not an indicator of future results The above shows FXCM's USDOLLAR basket on a weekly chart. Given the expectations of a tapering announcement from the FOMC statement today, the analysis here is important. Last week's candle is a potential swing low reference candle (aqua arrow). To be considered as such, this week's candle will need to close above the reference candle's high (aqua horizontal line). The FOMC…

Unemployment in New Zealand dropped to 3.4% during the third quarter, compared to 4% in Q2, making easier for the country’s central bank (RBNZ) to continue down its tightening path

Markets appear to be cautious ahead of the Fed’s potentially consequential monetary policy decision later in the day, as the Eurodollar consolidates following Tuesday’s slide

The Reserve Bank of Australia kept the official cash rate (OCR) at 0.1% today and will continue to purchase government securities at the rate of $4 billion a week until at least mid February 2022. However, it decided to discontinue the target for the yield on the April 2024 bond, after the recent 3Y Yields surge. The Board reiterated that it will not increase the cash rate until actual inflation…

Past Performance: Past Performance is not an indicator of future results. After a 2020 which saw the greenback's value decline significantly (off the back of the Federal Reserve's unlimited quantitative easing), 2021 has seen the currency stabilise and begin to appreciate. The USDOLLAR has now shifted up a gear. Technically speaking there are a number of positives to the weekly chart above. The USDOLLAR has moved above its black 30-week…

The ECB Changes Monetary Policy Strategy to Symmetric Target On 8 July the ECB announced its new monetary policy strategy of symmetric 2% inflation over the medium term. The target is symmetric in that any deviation, be it positive or negative, is regarded as "equally undesirable." Market participants were eager to learn more and there was a keen focus on the ECB statement and President's Lagarde's press conference on 22…

Australia's economy is officially above pre-pandemic levels. Economic activity has bounced back in the past two quarters. Data from the Australian Bureau of Statistics (ABS) reveals Australia's Gross Domestic Product (GDP) rose 1.8 per cent in the March quarter of 2021. But will continued State lockdowns see that growth continue? The news was delivered on June 2nd, in parliament by Josh Frydenberg, Australia's Treasurer: ''Todays national accounts, show that Australian…

In its latest policy decision, the Reserve Bank of New Zealand offered a hawkish surprise, by announcing the discontinuation of its Large Scale Asset Purchases (LSAP)