Fri Aug 28, 2015 9:50 am
Rising trend in Japan prices remains intact -govt official
A Japanese government official on Friday said the consumer inflation of the country is still in an upward trend when excluding the effect of sharp oil price falls last year. Government data showed July's core consumer price index was flat from a year earlier, the first time it did not rise in more than 2 years.
US dollar escalates following upbeat data, better risk appetite
The US dollar accelerated Friday after an upbeat US data and as investors continued to scale back on safe-haven currencies. According to the Commerce Department, US gross domestic product grew at 3.7% in the second quarter, previously 2.3%. The greenback stood at $1.1200 per euro and $1.5412 per British pound. Against the Japanese yen, the dollar traded at ¥121.00. Today's US economic growth accrues to the positive flow of locally-focused “US data the Fed desires to see,” said analysts at Citi. However, projections for a September interest rate hike have dwindled following some Federal Reserve officials seemed a bit more cautious, citing sluggish Chinese growth and global market turmoil.
Canadian dollar ascends as oil prices surge
The Canadian dollar strengthened Thursday as crude prices rallied more than 10% after a global equities surge and a slump in US oil inventories. Oil prices settled at $42.56 a barrel. Also, the Energy Information Agency reported crude oil inventories slid by 5.5 million barrels in the week to August 21. The loonie ended at 75.65 US cents from Wednesday's 75.10 US cents. Precisely, a lot of volatility, confusion, and uncertainty. It all began with China, “that's kind of the elephant in the room,” said Rahim Madhavji, President at KnightsbridgeFX.com. Investors have been turning to safety on apprehensions about sluggish growth in China.
British pound plunges after robust US data
The British pound plummeted Thursday following the US economy expanded robustly in the second quarter, escalating bets the interest rates could increase this year. According to the Commerce Department, US gross domestic product grew at 3.7%, from 2.3% last month. Sterling finished at 72.91 pence per euro. Against the US dollar, the pound stood at $1.5398. “All the financial upheaval means the September rate hike is not “perhaps as certain as it was previously,” said Dennis de Jong, Managing Director at UFX.com. Traders remain uncertain on the Bank of England's timing of rate increase, given recent volatility in global stock markets.
Published: 2015-08-28 06:04:58 UTC+00
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