Forex Weekly Outlook – Is Euro Headed for Parity with The Dollar

Forex Weekly Analysis and Outlook – US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, New Zealand Dollar, Turkish Lira, Mexican Peso. Risk aversion sentiment again dominated currency again this week. Rising U.S. interest rates and safe haven flows have seen the U.S. dollar soar in 2022. This week however the Greenback pulled back as traders priced in the odds of a U.S. recession becoming more likely. The Swiss franc was the beneficiary among the major … Continue reading “Forex Weekly Outlook – Is Euro Headed for Parity with The Dollar”

Forex Weekly Outlook – Currency Forwards and Option Hedging Strategies Rise with Soaring US Dollar

The US dollar has risen about 15% against a basket of currencies over the last year with rising U.S. interest rates and safe haven flows. The higher greenback has reduced the profits of U.S. multinational companies that convert foreign currency into dollars, multinationals such as Coca-Cola Co, Procter & Gamble and Philip Morris International are just some seeing an impact. The US dollar is at a two-decade high against the Japanese yen, up 13% this year. Against the Euro is … Continue reading “Forex Weekly Outlook – Currency Forwards and Option Hedging Strategies Rise with Soaring US Dollar”

Forex Weekly Outlook – Japanese Yen Weakest Major Currency Against US Dollar in 2022

Rising U.S. interest rates and safe haven flows have seen the U.S. dollar soar in 2022. The American 10-yr yield rose six basis points to 3.12%, hitting a fresh high for the year while the 2-yr yield fell five basis points to 2.67%. The US Dollar Index (DXY) hit a 20-year high, the highest levels since 2002. The weakest component of the index has been the Japanese yen, sliding around 12 per cent against the dollar and underperforming even weak … Continue reading “Forex Weekly Outlook – Japanese Yen Weakest Major Currency Against US Dollar in 2022”

Forex Weekly Outlook – US Dollar Hits 20 Year High in April on High Rates and Safe Haven Flows

The U.S. dollar has soared with safe haven flows as geopolitical fears grip the world and interest-rate increases from the Federal Reserve. US Dollar Index (DXY) hit a 20-year high, the highest levels since 2002. The Greenback reached multiyear highs against the euro, the British pound and the yen in April with the positive rate differentials, a huge part of the dollar’s strength. A strengthening dollar also tends to weigh heavily on emerging markets currencies, a rising dollar makes dollar-denominated … Continue reading “Forex Weekly Outlook – US Dollar Hits 20 Year High in April on High Rates and Safe Haven Flows”

Reserve Bank of New Zealand Raised Rates 50 Basis Points to Help Reduce Risks of Rising Inflation Expectations.

The Reserve Bank of New Zealand raised its Official Cash Rate by 50 bps to 1.00%, as expected. The RBNZ also left the door open to another similar large increase at its next meeting in May. central bank will not reinvest QE proceeds and bond holdings will begin decreasing by NZD5 billion per year in July. The Reserve Bank of New Zealand raised the cash rate to 1.5% from 1.0%. The follows quarter-percentage-point increases at each of its October, November … Continue reading “Reserve Bank of New Zealand Raised Rates 50 Basis Points to Help Reduce Risks of Rising Inflation Expectations.”

Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected, Will Not Reinvest QE Proceeds

The Reserve Bank of New Zealand raised its Official Cash Rate by 25 bps to 1.00%, as expected. The central bank will not reinvest QE proceeds and bond holdings will begin decreasing by NZD5 billion per year in July. Reserve Bank of New Zealand raise its Official Cash Rate from 0.75% to 1.00% The rise in the official cash rate comes after last quarter’s which was the first since 2014 when the OCR hit a post-GFC peak of 3.5 per … Continue reading “Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected, Will Not Reinvest QE Proceeds”

Reserve Bank Of New Zealand TWI Re-Weighting Sees Chinese Yuan Higher and Australian Dollar Lower

The RBNZ released it’s annual re-weighting of the Trade-Weighted Index (TWI) Thursday to take effect on Friday 10 December 2021. The Chinese yuan weighting rose from 0.2348 to 0.2704. Australian dollar weighting fell from 0.1871 to 0.1729. The TWI is a measure of the value of the New Zealand dollar relative to the currencies of New Zealand’s major trading partners. There are 17 currencies included in the TWI and each currency is weighted using the country’s two-way goods and services … Continue reading “Reserve Bank Of New Zealand TWI Re-Weighting Sees Chinese Yuan Higher and Australian Dollar Lower”

Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected

The Reserve Bank of New Zealand raised its Official Cash Rate from 0.50% to 0.75% as expected as capacity pressures have continued to tighten. RBNZ says headline CPI inflation is expected to measure above 5 percent. Reserve Bank of New Zealand raise its Official Cash Rate from 0.50% to 0.75% The rise in the official cash rate comes after last month’s which was the first since 2014 when the OCR hit a post-GFC peak of 3.5 per cent. RBNZ projections … Continue reading “Reserve Bank of New Zealand Raised Rate 25 Basis Points as Expected”

Kiwi Slaughtered After New Zealand Moves Left With New PM Arden

The New Zealand dollar has tumbled in foreign exchange markets after the fallout from the party with the balance of power, First Party after the recent election decision to side with the opposition Labour/Green coalition. The inexperienced Jacinda Arden is the new Prime of Minister of New Zealand which has caused finacial markets to lurche lower.