The change in the interest rate differential between two countries is one of the key driving factors in determining changes in that cross currency fx rate. All else being equal, investors prefer to hold more of a currency when interest rates for that country increase. For example, at the start of 2011, U.S interest rates were near zero. Compare this to interest rates in Australia of 6.75% at the same period. Using this example, selling USD to hold AUD results in a higher return for an investor from the interest payments generated. This increases demand for the AUD/USD causing the currency to appreciate in value.
It's important to note, that changes in the relative interest rates are what cause changes in FX rates. For example, if United States interest rates increased to 0.5% holding Australian Interest Rates constant, this would cause a deprecation in the AUD/USD even though Australian interest rates are still higher.
Soft economic data dragged the AUD/USD pair below the 0.9400 area prior to the opening of today’s European session. Meanwhile, the GBP/USD pair is currently testing the 1.7050 area after a shaky Monday morning in Europe. Read more >>
The week will be filled with many events, but only a few will have quite a significant impact to the market. We list them in this post. Read more >>
The AUD/USD pair returned to the 0.9400 level today mainly due to the weakened greenback. Read more >>
The EUR/USD pair is climbing early in today’s US session in a morning filled with events. Read more >>
The EUR/USD is on recovery mode early in today’s Asian session, after it slipped yesterday on strong US economic data. Read more >>
The greenback slipped against several majors after the Federal Reserve revealed its decision to maintain its interest rate at 0.25 per cent, while at the same time cut its QE program by $10 billion. Read more >>
The market is currently on a look and see mode as it awaits the BoE and FOMC events that will happen later today. Read more >>
The aussie and the kiwi were winners in today’s Asian session. This is after a relatively quiet start of the week, with no significant events in coming up in the horizon. Read more >>
This week’s major events will be centred in the United Kingdom and the Asia Pacific region. Find out more about these events in this article. Read more >>
The AUD/USD and USD/JPY were winners in today’s Asian session, partly due to the weak greenback. Read more >>
The AUD/USD pair jumped up today after the release of Australia’s New Home Sales and Private Capital Expenditure Data. Read more >>
The AUD/USD pair is off to a rough Monday as traders to continue to struggle to break through the 0.9400 level over the past several days. Read more >>
Majority of this week’s events will be centred around the United Kingdom, as it will release a number of important data, including its Consumer Price Index (CPI) and the minutes of the Bank of England’s (BoE) latest meeting. Read more >>
CPI data from the United States and the European Union, as well as a number of other economic data from Germany, Australia, Japan, and the United Kingdom will be the main events in this week’s trading. Read more >>
The AUD/USD pair rose sharply in today’s Asian session with China’s better than expected trade data in April. Read more >>
The AUD/USD pair rallied today after the release of the Reserve Bank of Australia’s (RBA) monetary policy statement, which announced that it would maintain rates at 2.5 per cent. Read more >>
This week will feature a number of interest rate announcements, employment data, and CPI figures, so it’s likely going to be a very busy one. Read more >>
Expect this week to be extra busy as there are very important events happening in the United States, United Kingdom, Europe, and Japan. Read more >>
There will be few significant events this week, coming from Australia, New Zealand, the UK, US, and Japan. We’ll fill you in with the details in this article. Read more >>
Most of today’s financial markets are closed in observance of Good Friday. As such, no big movements in currencies are expected today. Read more >>
The Philadelphia Fed Manufacturing Survey helped lift the greenback against a number of currencies in today’s US trading session. Read more >>
This week will be packed with events, especially in North America and in Europe. We’ll fill you in with the details in this post. Read more >>
Australia’s positive employment data released earlier helped the AUD/USD pair break past the 0.9400 level today. Meanwhile, the GBP/USD traded within a tight range after the BoE announced no changes to the country’s interest rate. Read more >>
The USD/JPY pair continued to slide down in today’s Asian session ahead of the BoJ interest rate decision. Read more >>
The USD/JPY continued to slide in today’s Asian session ahead of a busy week for the pair. Meanwhile, the AUD/USD pair has once again knocked on the 0.93 area early in today’s Asian session. Read more >>
Expect this week to be fairly laid back as there are only a few events of note to check out. Nevertheless, find out what’s going to happen in the coming days in this article. Read more >>
There were no surprises earlier today when the Reserve Bank of Australia (RBA) announced that it would maintain cash rates at 2.5%. Read more >>
It’s been a quiet yet day so far today during the Asian session, which led to a weaker aussie and yen. Read more >>
This will be quite a busy week as we have a number of important events coming from Europe, the United States, Australia, and Canada. Read more >>
The EUR/USD pair continued to slide in today’s trading after the release of poor PMI figures in the region. Read more >>
The EUR/USD pair made a sharp decline in today’s European session, continuing a trend that began last week. Meanwhile, the GBP/USD pair benefited massively from the United Kingdom’s better-than-expected retail sales data for February Read more >>
The AUD/USD pair dropped sharply early in today’s Asian session after the People’s Bank of China (PBOC) decided to revise its yuan reference rate yet again. Read more >>
Today’s Asian session has been good to the AUD/USD pair so far after the release of the minutes of the Reserve Bank of Australia’s (RBA) meeting. Read more >>
The EUR/USD opened today’s London session on a weak note, dropping under the 1.3885 area. Read more >>
Many of this week’s important events will happen in Europe, the United Kingdom, and the United States, including the EU’s Consumer Price Index, the minutes of the Bank of England’s meeting, and the US interest rate decision Read more >>
Most of this week’s events will be focused on the Pacific region, with both New Zealand and Japan releasing their respective monetary policy decisions. Find out more about these events in this post. Read more >>
And just like that, the AUD/USD pair returned to the 0.9000 zone. This came after Australia posted better-than-expected Retail Sales and Trade Balance figures for January. Read more >>
Talk about the aussie’s ‘historically high’ value returned to the Reserve Bank of Australia’s (RBA) statement earlier today after not being mentioned for the past several months. Read more >>
Mixed data from China today dragged down the aussie at the opening of the Asian trading. Read more >>
This week will be a combination of PMI data, interest rate decisions, and GDP figures of several countries. We’ll fill you in with the details in this post. Read more >>
The GBP gained strength in today's European session at the back of positive mortgage approvals data, MPC member Ian McCafferty's statement on the United Kingdom's (UK) interest rate, and the CBI Distributive Trades Survey for February. Read more >>
The United Kingdom and the United States will have a particularly busy week ahead, with each country releasing their CPI data along with other reports. Read more >>
China beat expectations after it released its trade balance figures for January earlier in today's Asian trading. It came out at a whopping $31.86 billion, which was significantly higher than the expected $23.65 billion. Read more >>
As with the previous week, this will be a relatively quiet one. Most of the events will be concentrated in the Eurozone, with others to come from Australia, China, and the United States. Read more >>
After a steady performance between the 0.8940-0.8980 areas yesterday, the AUD/USD pair took a surprise dive earlier today, with no apparent trigger for the move. Read more >>
Yesterday was a fairly volatile day for the EUR/USD pair as it traded from lows of 1.3500 to highs at the 1.3550 area. The pair peaked at 1.3555 late in the European session, but was quickly dragged down after the release of the US ADP Employment Change in January. Read more >>
The AUD/USD pair opened today's Asian session on a soft note, mostly due to profit-taking. Yesterday, the aussie rallied against the greenback after RBA Governor Glenn Stevens took a neutral stance on its interest rate, saying that it would maintain rates at 2.5%. Read more >>
The GBP/USD pair reached a daily high at the early part of today's European trading after the United Kingdom posted a better-than-expected PMI Construction figure for January. Read more >>
The European Union's better-than-expected Manufacturing PMI in January helped lift the euro against the greenback in today's European session. Read more >>
The first week of February will mostly be a quiet affair, with a just a number of events happening in between. Check out the details of these events in this post. Read more >>
The AUD/USD pair is showing signs of recovery after being battered yesterday due to the weak Chinese Manufacturing PMI. Read more >>
The aussie's woes are far from over and continues to be sensitive against the Chinese economy, as the AUD/USD pair slid after the release of the softer-than-expected HSBC Manufacturing PMI from China. Read more >>
Turkey sent shockwaves around the world as it decided to raise its lending rates to 12%. The move was primarily aimed at reviving the value of the Turkish lira, which fell by as much as 5% in January. Read more >>
The AUD/USD is currently going through a period of correction after dropping under the 0.87 level. The pair has been on an upward trend since yesterday and has so far peaked at the 0.8760 area. Read more >>
Want to know what fx events are lined up for this week? Read this article for more details. Read more >>
The AUD/USD pair fell once again after China revealed a drop in its PMI in January. It came out at 49.6 this month versus 50.5 in December, and against analysts' expectations of a rise to 50.6. Read more >>
Better-than-expected Consumer Price Index (CPI) data from Australia helped lift the aussie against the greenback in today's Asian session. Read more >>
New Zealand's better-than-expected Consumer Price Index (CPI) figures helped boost the NZD against a number of major currencies early in today's trading. Read more >>
After taking a huge beating in last week's trading, the AUD/USD pair had slight gains during today's session. The recovery was fueled by Chinese data that were released earlier today. Read more >>
Expect this week to be a busy one, especially from Monday until Wednesday. Several countries will release important data, including interest rate decisions from Japan and Canada, CPI of New Zealand, Australia, and Canada. Read more >>
ECB President Mario Draghi stated that the bank is prepared to make "further decisive action" if necessary after stating the it would maintain rates at 0.25%. Read more >>
The AUD/USD pair closed yesterday's session weakly partially due to the strong greenback. Meanwhile, BoC Governor Poloz’ statement, coupled with a strong greenback drove the USD/CAD pair to levels not seen in more than three years. Read more >>
The EUR/USD pair opened on a weak note in today's Asian trading at somewhere around the 1.3580 level. One of the reasons for this is the continued weakness of the European Union's (EU) economy as a whole. Read more >>
It’s a new year and a new week in trading, and we return with our regular fx trading news and updates. Read more >>
The combination of the beginning of the Fed's QE program and weak European data sent the EUR/USD pair tumbling down in yesterday's trading. Read more >>
Australia earlier released the Minutes of the Reserve Bank's Monetary Policy Meeting. It's no surprise that the members continue to see the aussie as overvalued. Read more >>
Today will be a busy day for the euro, as several events in the region are up today. France already released its PMI data earlier, with the Manufacturing PMI down from 48.4 to 47.1, while the Services PMI was down from 48.0 to 47.4. Read more >>
The week will be a fully-loaded one in terms of importance. The UK, US, and EU will release their respective CPI data, the BoE will release the minutes of its latest meeting, and there will be several GDP-related news from various countries. Read more >>
This week will be a quiet one, with the bulk of events happening on Wednesday and Thursday. Check out the details of these events in this post. Read more >>
A lower-than-expected Trade Balance data from Australia dragged the AUD/USD pair to session lows at the opening of today's trading session. Read more >>
The AUD/USD pair fell yet again despite performing positively yesterday after the RBA's interest rate statement. From trading around the 0.9035 zone yesterday, the pair fell sharply today due to disappointing Australian GDP for Q3. Read more >>
The USD/JPY pair continued to soar higher in today's trading after Japan released positive news. Its Monetary Base for November was at 52.5% over a 12-month period, higher than the projected 47.2%, and was also higher than the previous 45.8%. Read more >>
The aussie received a major lift from news in Australia and China to start off December on a positive note. Read more >>
We finally come to the last month of the year, and this week, there are a number of important news and events we have to watch out for including monetary policy statements from Australia, Canada, the United Kingdom and the European Union. Read more >>
The EUR/USD pair hovered at around the 1.4000 zone in today's trading as the market awaits important PMI reports coming from Europe. Read more >>
In a surprising move, the European Central Bank (ECB) announced yesterday that it would cut interest rates by another 25 basis points. The cut brought down rates to 0.25%. Read more >>
The aussie suffered today after Australia posted huge losses in fulltime employment in October. Based on the data released, 28,000 fulltime workers lost their job during the period. Read more >>
Earlier today, the Governor of the RBA said in a statement that the cash rates would remain unchanged at 2.5%. However, the takeaway in the statement for most traders was the mention of the aussie being ‘still uncomfortably high’. Read more >>
The EUR/USD pair bounced back to around the 1.3500 level in today's trading, albeit temporarily. This boost came after it dipped sharply last week amid speculations that the European Central Bank (ECB) would announce further cuts to its interest rate. Read more >>
As with the previous week, this one will start out quietly, and will only pick up in the middle of the week. This will feature interest rate decisions from the RBA, BoE, and the ECB, as well as employment data from Australia, Canada, and the United States. Read more >>
The week is bound to start on a quiet note, but it will eventually pick up on Wednesday with reports from Japan and China, and will be capped off with data from Canada and the US on Friday. Read more >>
News from Westpac and RBS hint that Australia might soon follow New Zealand's lead and increase interest rates in the near future. Read more >>
This week will have a number of interest rate announcements, important data from the EU, and the US NFP data. Check out what’s happening for the week of September 30 to October 4. Read more >>
The dovish statement from the FOMC, which decided to maintain its QE programme, has weakened the greenback against the euro during yesterday’s session. Read more >>
The AUD/USD pair fell early in today's trading as the Reserve Bank of Australia (RBA) released the minutes of its meeting last 3 September. Read more >>
The EUR/USD pair received a major boost today after Larry Summers withdrew from the running for Fed chairman. This left Janet Yellen as the main contender for the position, which would replace outgoing Fed chairman Ben Bernanke. Read more >>
This week’s the week many traders have been waiting for, since the Fed is expected to announce the beginning of its QE tapering plan. Plus, find out what else is happening this week in this article. Read more >>
Last week closed with weak NFP data from the US, and no changes to interest rates in Australia, Japan, Canada, EU, and the UK. Check out what events you need to watch out for this trading week. Read more >>
Check out what's happening in the fx market this week. With news from Australia, UK, EU, Canada, Japan, and the US. Read more >>
If you're keeping track of economic events this week, you've likely heard of the Jackson Hole Symposium that began on Thursday. We'll discuss it in this article, particularly on why this year's symposium is important. Read more >>
Check out some of the top fx events for this week with data coming from Germany, the UK, and Canada. Read more >>
The greenback suffered in today's trading after Atlanta Fed Bank President Dennis Lockhart said that the initial cut in its bond-buying program could happen at any of the three remaining policy meetings for the year. Read more >>
This week features a number of important reports and announcements from the EU, Australia, Japan, China and Canada. Check out the details in this article. Read more >>
The greenback rallied early in today's session as traders expect positive NFP and unemployment data from the US. Read more >>
The aussie continued to slide in today's trading after RBA Governor Glenn Stevens said that a weaker AUD would be better for the Australian economy. Read more >>
The AUD/USD pair slid sharply below the 0.9200 level early in today's trading after Australia's building approvals data fell in June. Read more >>
Expect a lot of volatility later in the week as the US, UK, and EU announce their respective interest rate decisions. Read more >>
The AUD/USD continued yesterday's slide up to the start of today's Asian session, while the GBP/AUD pair has made considerable gains over the past 24 hours. Finally, the NZD/USD rose after the RBNZ statement. Read more >>
The aussie and the yen fell in today's trading after China announced weak PMI data. Read more >>
The EUR/USD, AUD/USD, and the GBP/USD have been on a good start today, while the USD/CAD has seen a steady drop in today's session. Read more >>
Expect this week to be a quiet one, but keep watch on important events from the US, Japan, Australia, New Zealand, and the UK. Read more >>
If you have been following the fx market over the past few months, chances are that you have heard traders talk about the USD Federal Reserve's plans to "taper its QE" within the year. But what does the statement mean exactly? Read more >>
There were massive sell-offs in Nikkei futures today leading to weaker greenback and yen. Meanwhile, the RBA might cut rates further to 2% in the coming months, according to Westpac. Read more >>
Know what's going to happen in the fx market this week with this report. Contains important events from the EU, Japan, and Australia. Read more >>
The EUR/USD and GBP/USD fell after yesterday's interest rate decisions from the ECB and BoE. Meanwhile, the AUD/USD recovered slightly after a sharp fall in yesterday's trading. Read more >>
The market awaits interest rate decisions from the BoE and ECB today. Read this articles on what to expect. Read more >>
The aussie slid against the greenback after today's interest rate decision from the RBA. Check out this report for more details. Read more >>
Keep track of the upcoming events for this week in this article. Read more >>
The USD rallied against several currencies after the Federal Reserve maintained its rates at 0.25%. Read more >>
Today's announcement from the BoE declared no change in the interest rate, and also decided to keep stimulus at £375 billion. Read more >>
A number of important CPI and PPI data, plus interest rate decisions will come from North America and Europe this week. Check out the details here. Read more >>
After starting the week with a somewhat upbeat tone, the AUD fell sharply against the USD in today's trading. Read more >>
The USD continued to falter yesterday after the release of the US ISM Manufacturing PMI data. Read more >>
Find out what's happening this week in the world's markets. Read more >>
Check out this week's important events coming from Japan, the United States, Germany, and Canada. Read more >>
The EUR/USD soars to 1.2930 today ahead of Bernanke's testimony. Meanwhile, the USD/JPY moves within a narrow range prior to BoJ Governor Kuroda's press conference later today. Read more >>
Check out updates for the USD/JPY, EUR/USD, and the AUD/USD today. Read more >>
Check out some of the most important events for the week of May 20-24, 2013. Read more >>
The EUR got a boost from yesterday's Industrial Production data from Germany, while the GBP sees volatility ahead of the BoE's interest rate decision. Plus, the AUD rose during today's Asian session. Read more >>
The values of currencies fluctuate over time. Find out what causes these changes. Read more >>
The Australian Dollar fell sharply today after the Reserve Bank of Australia (RBA) announced an interest rate cut of 25bps. Read more >>
Find out what important economic news are coming up this week, May 6-10. Read more >>
Wait and see. That's pretty much the approach traders have taken so far this week prior to the ECB's interest rate decision that will be announced a few minutes from now. Read more >>
Tomorrow, the US Department of Labor is set to announce its non-farm payroll report. But what is it exactly and why is it important to forex traders? Read more >>
Find out how the USD/JPY and the EUR/USD fared so far in today's trading. Read more >>
Important announcements are up this week. Check out what these are in this post. Read more >>
Find out what fundamental analysis is and how it differs from technical analysis. Read more >>
Read up to learn more about some of the biggest events in the forex market for this week, 1-5 April. Read more >>
If you wish to gain an upper hand in the forex market, then you need to be able to predict how prices and trends will move. Knowing the direction that the market would take would then help you decide accordingly on what action you need to take. Read more >>
Here are some major events that you need to follow this week, 25-29 March. Read more >>
Want to know how announcements affect forex trading? Read this article for more information. Read more >>
Want to know what are the major events for this week? Click on this article to find out. Read more >>
Yesterday, we talked about some of the biggest events of the coming week. We also mentioned how important it is to keep track of announcements as these could affect the market in the coming days, or even weeks. Today, we talk about trends. As with trading stocks, currencies go through trends. In basic terms, a trend is the direction the foreign exchange market is taking. Successful traders learn to recognise these trends to enable them to make sound decisions, whether it is to buy, sell, or hold. Read more >>
FX is a dynamic marketplace. It can be volatile too. The thing is that things could change easily depending on developments in the market, particularly those that directly affect major currencies. Because of that, it is important to keep track of important events that could dictate the mood of the market in certain parts of the world. We will help you keep track of some of those events for this week. Read more >>
The euro returned to 1.3100 levels after ECB President Mario Draghi reported no change in interest rates at 0.75 per cent, a positive outlook later this year for the Eurozone. He said that while the short-term outlook for the region remained weak, a gradual recovery is seen for the second half of 2013. Meanwhile on the Australian front, the AUD/JPY cross pair neared the 98 mark, mainly due to the Yen’s poor performance as of late. Over the past 2 days, the Yen once again fell as the weakest currencies among the majors. Read more >>
The Australian Bureau of Statistics announced today that the country’s Gross Domestic Product (GDP) rose by 0.6 per cent in the last quarter of 2012 and 3.1 per cent on a year-on-year basis. The q/q figures released are in line with previous growth expectations against the upwardly revised +0.7 per cent in Q3 from +0.5 per cent. Meanwhile, the y/y figures were slightly above the previous 3 per cent expectation. Read more >>
Last week, Reserve Bank of Australia (RBA) Governor Glenn Stevens announced that despite the Australian Dollar being "somewhat overvalued", the RBA does not plan to intervene in the foreign exchange market. Stevens said that, "you need to be pretty confident that it is seriously over-valued, or the market is behaving in some quite irrational way, before you would launch large-scale intervention." But why exactly would the RBA want to intervene? We will discuss that in the following paragraphs. Read more >>
A flat yield curve occurs when there is little difference between the interest rates on government bonds for different maturities. For example, the rate on the one month bond might be similar to that of the 3 month or 1 year bond as illustrated in the chart below. Read more >>
In a previous article we looked at how interest rates affect fx rates. If you are not familiar with this concept, you should first review that article before reading on. This article looks at how the yield curve can be used to predict future interest rate trends. Read more >>
In a FX transaction, one currency is bought and another sold at the same time, and these two currencies are called a "pair" of currencies or "Cross". Read more >>