Commodity currencies remaining weak

26 August, 2015

The fallout from Monday’s volatility continues to be felt in markets largely devoid of other fundamental drivers. Yesterday’s cut in both 1 year lending rates and required reserve ratio appears to have some stabilizing effect, although European equities were already recovering before this news. The move is the fifth cut in rates in the past nine months, so can be seen as following on from the trend of recent months, rather than as an attempt to prop up the tumbling equity market, which has managed to stabilise today. After the yuan devaluation earlier this month, China appear to be moving back from more direct intervention in markets.

For FX, it’s meant a reversal of many of the moves we saw earlier in the week, which largely favoured the traditional safe havens such as the Swiss franc and the yen. Commodity currencies through are struggling against the backdrop of continued weakness in global commodity prices. This leaves USDCAD at highs for the year and the AUDUSD very near lows for the year to date. It’s difficult to see commodity currencies recovering given the wider global environment currently being faced. For today, there are no major data releases on the calendar, with just US durable goods at 12:30 GMT.


Source link  
USD Bounces From Month Low

Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion...

Dollar index hit a new low

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211...

USD Hit Post Election Low

To date the dollar index has almost given up all of the post presidential election rally...


BoE Expected to Keep Rates Steady

ECB Governor Draghi will make a speech in the Dutch Parliament at 12:00 BST today. It will be Draghi first speech...

Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

Corporate Earnings Lift US Stocks

Last week the US President Trump stated on twitter...


Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...

Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...

Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...

  


Share: