Sterling higher on rate debate

17 August, 2015

Cable finds itself around 20 pips higher at the European open on the back of comments from another member of the Bank of England’s MPC outlining the risks of leaving an interest rate rise too late. The comments were in a Telegraph newspaper article, which also outlined the risks of moving too early, but the fact that the debate appear to be getting stronger is the factor that is affecting the currency and making it a little more nervous regarding the prospects of higher interest rates. Elsewhere, the latest GDP data in Japan showed the anticipated weakness after the Q1 strength, declining 0.4% on a QoQ annualized basis, after a 1.1% gain in the previous quarter. The yen was pretty much flat-lined on the news, with attention now turning to tomorrow’s trade numbers.

For today and the week ahead, we should in theory see at least a calmer tone, with the Chinese currency having stabilized as the fix is virtually unchanged from that seen on Friday. That said, the tone to emerging market currencies remains weak, down around 5% on a broad basket against the dollar over the past month. As the prospects of a Fed rate increase remain in the balance, this is likely to continue, especially for those still reliant on overseas capital to fund current account deficits and having funded increased amounts of debt in US dollars. There are no major data releases on the calendar for today, with RBA minutes in Australia the focus for the Aussie overnight and UK inflation data in focus tomorrow.


Source link  
Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...

Rebound in Asian markets intensifies

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having...


Reasons to rebound EM indices

Asian markets are adding after reaching 14-month lows the day before. Positive markets are supported by the reports about China's invitation to trade...

Strong data supports U.S. markets

Stocks of the Emerging Markets remain under pressure on Wednesday morning, with positive sentiments prevailing in American markets following...

Pound press dollar on news about Brexit

Michael Barnier, the EU's top negotiator on Brexit, called a reaching of the agreement on the deal within next 6-8 weeks realistic. This news supported...


Brent reversed from resistance level

Brent Crude Oil recently reversed down sharply from the major, multi-month resistance level 79.50 (which has reversed the price multiple times from the...

EM Markets sale-off spreading to DM

The current weakness on the developing countries financial markets is the longest since 2008. The similarities go further than that: as well as 10 years ago...

The price for trade uncertainty

The markets are cautiously on buy for American stocks, and the dollar adds on fears that trade conflicts are seriously stifling the business sentiment...


In the past 24 hours Bitcoin has lost -0.65% and reached $6493.16208418. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 3.43% and is now at $203.460033781. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: