Settled markets

13 August, 2015

Markets are set to commence the day on a softer footing after Wall Street rallied strongly off its lows with investors believing that the recent moves by the PBOC to devalue the renminbi have put a nail in the coffin for a September rate hike from the Fed. This move has formed a clear “hammer” candlestick formation in the Dow Jones index, which is seen as a bullish signal in a downward trend, on top of this the S&P 500 has yet to close below the significant long term trend line indicator 200 day moving average, both of which could attract buyers back into equities and certainly European stocks are expected to see a bounce this morning. The dollar meanwhile suffered its biggest one day fall for six months and Treasury yields bombed for the second day in a row casting serious doubt over whether in just over a month’s time we’ll see the commencement of monetary tightening from the Federal Reserve.

The dollar has recovered a little ground overnight with EURUSD retreating from the 1.1200 level is hit yesterday forming a short term double top making this a key level of resistance for the single currency. Today the key event is the release of US retail sales data at 13.30 UK time and if this is softer than the expected month on month figure of 0.5% then this could cause the dollar to have another leg downwards.


Source link  
UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

US Equities at Record Levels

US equities closed at record levels on Wednesday, as improved risk-on sentiment returned to the markets and news that the US economy...

USD Stabilizes

Hurricane Irma has, reportedly, inflicted less damage on the US mainland than was originally predicted, thereby reducing the economic impact of the devastation it was expected to...


Markets on Edge

With the markets risk appetite dampened after North Korea’s most powerful nuclear test to date, USD and Global equities fell whilst Gold, Yen and Sovereign Bonds all rose....

Risk Appetite Returns

North Korea official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam...

US-Korean Tensions Rattle Markets

Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned...


Global Manufacturing Grows

Recent data releases have shown that global manufacturing saw an increase in July, further confirming global economic momentum has carried into H2...

All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

  


Share: