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.
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The common currency Euro plummeted versus its main rival the US Dollar after officials of the European Central Bank (ECB) indicated that they might be willing to take additional action to lower bond yields in the Eurozone and to boost inflation.
Minutes from the RBA’s May 5th meeting were released Monday, the content of which stated that the central bank had deliberated about delaying an interest rates cut, but given the forecasts for continued slow growth and the jobless numbers remaining high for longer than expected, it had made the decision to go ahead, cutting the rate a quarter point to a record low of 2%.
Though the dismal data from the US continues to pour in the US Dollar was able to regain some of last week’s losses even as investors weigh the likelihood that the Federal Reserve Bank will now not be making any policy change in the coming months.
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Despite fairly negative economic news, the S&P 500 managed to reach above 2,120 on Friday, just 4 points from the all-time intraday record.
This week should be more news-driven than last week, with key central banks releases on the USD, JPY and AUD. Get the Forex economic and political calendar for the week of May 18, 2015 here.
The financial situation in Athens remains in limbo. After another week of no progress between the Alexis Tsipras government and its creditors, the International Monetary Fund is showing signs of impatience and is threatening to pull out of any new bailout compromise.
With unemployment numbers dropping to a near 15-year low last week, pointing to a stronger job market, it looks like the Federal Reserve will not raise interest rates in the very near future.
The US Dollar continues to be under significant pressure as investors appear to have decided that the recent weakness in the US economy may not be as “transient” as the Federal Reserve Bank would have hoped.
Higher interest rates are virtually guaranteed, according to former Federal Reserve Chairman Alan Greenspan. Speaking on Wednesday at the Global Private Equity Conference in Washington, DC. Greenspan reiterated that helping the Fed and other central banks reduce overall debt is a necessity in order to reduce bond market volatility.
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The gap between US Treasuries and German Bunds narrowed, providing the common currency Euro with another lift, even in spite of an unexpected disappointment in Germany’s GDP figures.
The Reserve Bank of New Zealand released its Financial Stability Report this morning causing the NZD/USD to zigzag. The rate plunged and then recovered somewhat at the news that the RBNZ will be tightening its lending limits in an effort to slowdown the too robust housing market.
The Euro edged higher versus the greenback as bond market fluctuations effectively undermined the US Dollar; that move came as a surprise to analysts who, collectively, had expected the recent uptick in long-term overnight Treasury bond yields to provide a lift to the greenback.
In what is considered a surprise move, Greece managed to pull off the unexpected Monday. Cutting it down to the wire, it managed to pay the International Monetary Fund close to 750 million euros ($836 million), a portion of its outstanding debt.
Talks about the future of Greece remaining in the Eurozone, and the Greek government’s ability to repay an upcoming IMF loan appear not to have been very optimistic as FX traders send the Euro lower versus its major rivals including the US Dollar and the Japanese Yen.
China’s interest rate cut on Sunday was applauded enthusiastically by investors as an encouraging step towards bolstering the country’s faltering economy.