Tighter ranges on majors

10 April, 2015

We are seeing daily ranges in major FX pairs move lower as the dollar continues in what can best be described as a corrective phase. The 10 day (simple) average range of EURUSD has moved to near the 6-month average of 1.1 cents (or 110 pips). It peaked over 2 cents in the wake of last month’s Fed announcement. USDJPY is much below the similar 6 months average of the 10 day range. This is largely a reflection of the change in FX drivers we’ve seen, with the many easings of policy that were being seen globally earlier in the year fading, together with expectations of higher rates from the Fed in the first half of 2015.

For equities, great excitement for some as the Nikkei touches the 20,000 level overnight (for the first time since 2000), but the yen has been distinctly non-plussed by it. After all, it’s only another number. Elsewhere in Asia, the latest inflation data in China has confirmed the soft outlook, with CPI steady at 1.4% YoY and PPI at -4.6% in YoY terms. We also saw weaker housing market data in Australia, with Home Loans rising 1.2% in Feb, only partially reversing the (revised) 1.7% decline seen in the previous month. The Aussie has softened a touch, below the 0.77 level. Note that UK production data is see at 08:30 GMT today, with sterling getting a little more sensitive to the election, the result of which still remains very uncertain.


Source link  
The precious metal has broken out

The precious metal has broken out from its descending wedge around 1331.00 and moved higher to create a lower high at 1361.80.The price then...

All Focus on US inflation data

The USD has weakened further overnight as the market awaits important US Data at 13:30 GMT. USDJPY broke down under 107.000, while...

Central Bank speakers start a quiet week

UK MPC Member Vlieghe spoke at the Resolution Foundation in London. Some of the comments made were: If there is less credit headwind to the UK economy...


Equities Face a Nervous Session

The global equity markets are bracing themselves for a stormy closing session this week, as data from Thomson Reuters Lipper unit shows US fund...

Super Thursday for the Bank of England

The Bank of England is expected to largely proceed as normal today on ‘Super Thursday’ when the central bank releases its policy decision and statement...

US Nonfarm Payrolls Today

Today is Non-farm Payrolls day in the US. This data release is generally one of the most important of the month, being a leading indicator of consumer...


Australian Dollar drops after soft data

The Australian dollar eased on Thursday following weaker-than-expected economic data. The Australian Dollar took an initial knock on Wednesday on...

Trump Supports a Strong Dollar

Markets have had a volatile session this week thanks to various US officials and yesterday was no exception, with President Trump speaking in Davos...

A Weaker Dollar is Good for the US

Yesterday, Senior US Officials took the lead from their President and made clear the US position on Trade. Commerce Secretary Wilbur Ross...

  


Share: