Nervy markets

23 July, 2015

A few days out of the office and not a huge amount has happened in the world of the FX markets, but the action has clearly been more in the commodity and equity space. Investors were spooked by the move in Apple’s stock price which prevented the S&P 500 index from pushing to a new record high on its third attempt in as many months and the Nasdaq has formed a spike that resembles the bursting of a bubble. Since conquering the 7,000 level the FTSE 100 has continually failed to maintain its ground and looks more and more unable to recoup its lost ground the more it remains aimlessly drifting in the mid-6,000 area. Tech stocks faltering, commodities weakening, Asian growth slowing and interest rate hikes on the horizon are all a recipe for limited upside to indices going forward so we could see another uptick in volatility like we saw earlier in the month.

Yesterday was a landmark for the Bank of England only in respect to the release of MPC meeting minutes which will now be released at the same time as the actual rate decision going forward. The BOE’s next policy meeting is on 6th August where we might see the first votes for a rate hike after yesterday’s minutes revealed no one had yet stuck their neck out. Today sterling sees retail sales released which are expected to rise and could provide the pound with a reason to defend the 0.7000 level in EURGBP. Then there’s the weekly jobless numbers from the US expected to dip to 280k, pretty much on par with the current 4-week moving average.


Source link  
Divergence Between Fed and BoJ

The March FOMC meeting will be held for two consecutive days from today. The interest rate decision will be announced at 18:00 GMT on Wednesday 15th March...

Market Volatility Expected Ahead of President Trump's Speech

In a speech that will be watched by millions of viewers in the United States and around the world, the President is expected to speak of his presidency and address pressing issues like his plans for health care, the tax system, the military, and his goals for his administration...

Gold Trades Below Resistance Ahead of the Fed and NFP

We will see the release of the US ISM Manufacturing PMI, and ISM Prices Paid for January, at 15:00 GMT on Wednesday 1st February...


Sterling Struggles Ahead of Theresa May's Speech

Theresa May will make a speech outlining her plans for Brexit tomorrow, Tuesday 17th Jan, before the UK triggers Article 50 to leave the EU...

Dollar Turn-around on Trump's Press Conference

President Elect Trump's first press conference after his victory in the US presidential election, was held yesterday around at 16:00 GMT. It has caused great volatility to the dollar and the markets...

Gold Nears Major Resistance Ahead of Trump’s Press Conference

Gold prices have rebounded since mid-Dec after testing the significant support line at 1120. On the 4 hourly chart, gold bullish momentum has been strengthened since the beginning of this year, helped by the dollar retracement...


Searching for a new narrative

Popcorn at the read today as President elect Trump has a scheduled news conference later in the day (around 16:00 GMT). Markets have become used to listening to him in 140 characters or less over the recent weeks, so a more elongated narrative should be welcome...

The sterling conundrum

Yesterday's early weakness in sterling, on the back of the latest comments from PM May surrounding Brexit, took cable close to key support levels and the resilience seen through most of the post US election period has been unwound...

Selling into USD strength

In summary, Friday US jobs report was pretty much in line with expectations, although the slightly better data on earnings gave some support to the dollar into the end of the week. As a result, the US currency was little changed from Tuesday opening levels...

  


Share: