The price of one currency compared to another is not necessarily an indication of wealth, power, or strength.
The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Thursday along with gains for other commodity-linked currencies as investors cheered progress toward passing a U.S. debt ceiling bill. "That suggest it's a risk-on recovery, likely fueled by optimism on the debt deal passing the House of Representatives so quickly and now ready for the Senate approval," said Amo Sahota, director at Klarity FX in San Francisco. The U.S. House of Representatives passed a bill to suspend the U.S. debt ceiling on Wednesday evening.
The dollar has remained mostly steady pre-NFP as the majority consensus shifted back to a hold on 14 June.
The US dollar has pulled back just a bit during the trading session on Thursday but have found enough buyers underneath to push the market to the upside.
The British pound initially pulled back a bit during the trading session on Thursday but has found enough support near the 50-Day EMA to show signs of life. Ultimately, this is a market that still has a lot of noise ahead.
The British pound has initially pulled back just a bit during the trading session on Thursday, only to turn around and pressure the Japanese yen to the upside yet again.
The euro continues to face a lot of downside pressure on Thursday as we try to figure out if the buyers are going to jump back in.
The Australian dollar has rallied during the trading session on Thursday, as it looks like we are trying to bounce back from a significant selloff. That being said, the market still has a long way to go before things change.
The Indian rupee saw its best single-day gain in two months on Thursday, and also rose to a two-week high during the session, following strong domestic growth data, which prompted traders to square off long dollar positions. Consistent flows into equities coupled with strong economic data is supporting the rupee, said Dilip Parmar, a research analyst at HDFC Securities. India's economic growth accelerated to 6.1% in the March quarter, higher than what economists had expected, confirming that the country remains one of the fastest growing emerging economies.
The dollar rose on Thursday after a vote of approval from the U.S. House to suspend the debt ceiling, though the greenback drifted from a two-month high as investors trimmed bets the Federal Reserve will raise interest rates this month. The euro fell ahead of euro zone inflation data due at 0900 GMT, which is expected to show price pressure in the block has eased. A divided U.S. House of Representatives on Wednesday passed a bill to suspend the $31.4 trillion debt ceiling, and the focus now turns to how it will fare in the Democratic-led Senate just days before the federal government is expected to run out of money to pay its bills.
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The Indian rupee saw its best single-day gain in two months on Thursday, and also rose to a two-week high during the session, following strong domestic growth data, which prompted traders to square off long dollar positions. Consistent flows into equities coupled with strong economic data is supporting the rupee, said Dilip Parmar, a research analyst at HDFC Securities. India's economic growth accelerated to 6.1% in the March quarter, higher than what economists had expected, confirming that the country remains one of the fastest growing emerging economies.
Investing.com -- Most Asian currencies advanced on Thursday, while the dollar inched lower tracking comments from Federal Reserve officials touting a potential pause in the rate hike cycle in June.
The US dollar initially fell during the trading session on Wednesday, as it looks like we are getting a little heavy. However, we have seen buyers come back again.
The British pound has initially tried to rally during the day on Wednesday but turned around to show signs of life at the 1.2350 level.
The British pound has fallen rather hard against the Japanese yen during the Wednesday session.
The euro fell rather hard during the course of the trading session on Wednesday, as we are testing the 200-Day EMA.
The Aussie dollar initially tried to rally during the trading session on Wednesday but gave back gains as we continue to see a lot of negativity out there.
Sterling hit a 5-1/2 month high against the euro on Wednesday after data showing lower inflation in major European markets, but fell against the dollar as investors eyed Bank of England rate expectations for the pound's direction. The euro dropped to as low as 86.27 pence, its weakest since Dec. 15, and was last trading down 0.2% at 86.32 pence after inflation data from France and several major German states came in under expectations. More broadly, investors were looking at expectations for the Bank of England's main interest rate for indications about where the pound trades from here.
Home prices in the euro zone may be headed for a "disorderly" decline as high mortgage rates make purchases unaffordable for households and unattractive for investors, the European Central Bank (ECB) said on Wednesday. It was one of several risks flagged in the ECB's Financial Stability Review (FSR, along with higher borrowing costs and slower growth hurting companies and households and, in turn, casting a shadow on traditional lenders and shadow banks. The ECB has been raising interest rates from record lows since July in a bid to fight inflation, and looks set to continue doing so in coming months.
The Australian and New Zealand dollars declined along with the yuan on Wednesday after a surprise deterioration in Chinese factory activity stoked worries about the country's sputtering post-pandemic recovery. Traditional safe-haven currencies the dollar and yen outperformed the euro and sterling. The yen received additional support after Japan's top currency diplomat warned on Tuesday that officials were watching the currency closely following its slide to a six-month low, which has raised the spectre of intervention.
(Bloomberg) -- Warnings of official intervention may have come earlier than some yen watchers expected, but just like last year they are focusing on the pace of declines in the Japanese currency rather than any specific levels.Most Read from BloombergChina Is Drilling a 10,000-Meter-Deep Hole Into Earth’s CrustWinklevoss Twins Attempt Pivot After Gemini Loses Money and EmployeesTwitter Is Now Worth Just 33% of Elon Musk’s Purchase Price, Fidelity SaysJPMorgan Builds Unit for World’s Richest Fami
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The Indian rupee on Wednesday was unmoved by the U.S. dollar's Chinese yuan-fuelled strength, helped by the possible dollar inflows and an important support level. The rupee was at 82.64 against the U.S. dollar by 10:52 a.m. IST, compared to 82.71 on Tuesday. This is despite a further decline in the yuan, which pushed other Asian currencies lower and boosted the dollar against its major peers.