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  
US Jobless Claims Lowest Since 1973

US Department of Labor released Initial Jobless Claims for the week ending October 13th that showed a resilient and stable labor market...

Politics Influence Markets

With fears abating surrounding the threat of Catalan independence, the EUR moved higher overnight. Catalan President Puigdemont stated...

US Unemployment at Lowest Level

On Friday, the US Department of Labour released Nonfarm Payrolls for September. The meagre forecast of 88K was beaten with an even worse...


Further Strong Data From the US

On Wednesday, the US Institute for Supply Management (ISM) released Non-Manufacturing PMI for September that surprised the market...

Upbeat Data Boosts Dollar

On Monday, the US Institute for Supply Management (ISM) released data showing the index of national factory activity surged to a reading...

Harvey & Irma Effects Still Evident

The EUR suffered a second day of selling pressure, as the markets are growing concerned that the rise in right wing nationalism witnessed...


Risk-On or Risk-Off?

The rhetoric continues between North Korea and the United States with North Korea’s Foreign Minister, Ri Yong Ho, describing President Trump’s recent comments as “tantamount...

German & New Zealand Elections

The results of the German Election have re-elected Chancellor Angela Merkel for a fourth term. Her CDU party won fewer votes than was expected and Chancellor Merkel...

Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

  


Share: