Standoff

18 June, 2015

Once again, the consensus for the first rate hike from the FOMC has slipped further into the distance as the Fed Chair gave a dovish tone at the post-FOMC meeting press conference. The first move remains conditional on further improvement in the labour market and when the Fed is “reasonably confident that inflation will move back to its 2% objective”. There was also an emphasis that the rate moves would be more gradual when they do come about. The dollar was weaker as a result, with EURUSD moving to the top of the recent range, with near-term resistance coming in at 1.1380/86 area. Cable took a turn for the better, making new highs for the year at 1.5851.

Once again, Greece is top of the agenda with Eurozone finance minister meeting to discuss the issue. There are no signs that any agreement or progress is going to be made, so if anything markets will be looking for signs of where we go from here with compromise and agreement not on the agenda. So overall markets have twin forces to contend with, with for the moment, is proving to be steady to softer for equities, with the softer dollar tone continuing in Asia, especially against the yen. Focus later on will be with the CPI data in the US, where core rate is seen holding steady at 1.8%, headline moving back into positive territory from -0.2%.


Source link  
U.S. Government Shuts Down

The U.S. government shutdown over the weekend as the Senate failed to pass a bill to keep the funds flowing late on Friday. The Democrats are making...

USD Index Retesting Significant Lows

The Economic calendar for today is very light, with main events in focus for the European trading session concentrating around German PPI...

Economic calendar is relatively light

Today is Martin Luther King’s Birthday, which is a Bank Holiday in the United States. As a result, the Economic Calendar is relatively light today...


US Tax Bill passes

On Wednesday, the US Senate approved the tax bill 51 for and 48 against, while the House of Representatives gave it final approval, passing it for the second time in two days after...

US dollar 'treading water'

USD is treading water ahead of the expected enactment of President Trump’s tax bill. The initial euphoria of lower corporation tax, that many...

CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...


No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...

CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...

No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

  


Share: