Forex

The euro snapped a two-day rising streak following German election results

German elections prompted investors to lock profits into one of the most profitable currency trades of the year ending the euro’s two-day rise. Money managers have piled into the single currency and related bets in 2017, particularly European equities, as the euro zone economy regained momentum and its monetary policy outlook diverged from its counterparts in the United States and Japan, pushing the euro up more than 13 per cent this year. However, and expert termed the impact limited as the effect of the election result is domestic rather than regional. He said that the euro will be more sensitive to any shift in direction from the European Central Bank policy.

The dollar came down against the yen after shutdown remarks by U.S. President Donald Trump

Following U.S. President’s shutdown remarks, the dollar edged down on Wednesday. Trump recalled his election vow to build a wall at the U.S.-Mexican border during a rally in Phoenix. Talking to his supporters, he said, “If we have to close down the government, we are building that wall.” He raised the spectre of a government shutdown to fulfil a campaign pledge. Trump also indicated the possibility of terminating the NAFTA treaty with Mexico and Canada and commented on the U.S.-North Korea crisis.

The euro pulled away from 10-month high after British retail sales

The euro pulled away from almost 10-month highs after data showing that British retail sales slowed in July. The currencies touched the strongest level since October amid expectations that brexit will be more damaging to the UK economy than the euro zone.

Euro slipped back below $1.20 amid investor worries

The euro slipped back below $1.20 as investors worried that the single currency might be running out of steam. The currency had witnessed 14 per cent rise since the beginning of the year. The dollar was recovering from a four-month low against the yen as worries about North Korea´s latest missile test eased.

Royal mail leaves FTSE 100 after shares fall

Royal Mail is out of FTSE 100 after its shares fall more than 15 per cent. Its price was at just above 390p, which is above its worth then the government sold the stock earlier. The mail delivery organization also faces a series of issues which includes industrial action in which the Communication Workers Union rejected a new pension arrangement, raising the possibility of strike. Royal Mail did not deliver compared with other top companies which was another reason for its exit from the listing. This means the mail delivery organization will drop into the FTSE 250 index after trading closes on 15 September.

The forex markets are treading water in a rather dull start to the week, staying mostly in ranges.

Other financial markets are mixed too. NASDAQ hit record high overnight and closed up 0.36% at 6410.81. But DOW and S&P 500 closed down by -0.31% at 21513.17 and -0.11% at 2469.91 respectively.

The dollar gained in Asia on Tuesday in light trade ahead of lagging central bank minutes from Japan and attention on the Fed’s policy review decision on Wednesday.

The Central Bank of Nigeria (CBN) Wednesday intervened in various segments of the inter-bank market to the tune of $195 million (£150 million).

The Australian and New Zealand dollars were higher on Thursday, as sentiment on the greenback remained vulnerable amid U.S. political concerns and after upbeat New Zealand business confidence data.

AUD/USD gained 0.33% to 0.7664, the highest since March 30.

The Canadian dollar rose to its highest level in nearly two months on Tuesday, buoyed by hawkish comments from Canada’s central bank, while worries about UK political uncertainty dented sterling.