Fed acknowledges new reality

27 August, 2015

A day of relative stability for Chinese shares, which have been the driving force of sentiment this week, the Shanghai composite trading in positive territory along with most other indices in Asia. The damage to developed market shares has been done though, with the S&P500 still down 7.5% on the month. As for currencies, yesterday was a day of further correction, especially for sterling, with cable down below the 1.55 level, last seen early August. The UK currency had performed pretty well in the early part of the week, so this move is something of a catch up. EURUSD is now below the levels that were prevailing at the start of the week. The commodity currencies, which were under pressure early on, have recovered further, especially the Canadian dollar which continues to flirt with the 1.33 level.

Yesterday also saw confirmation from one of the US Fed Governors that the prospect of a US rate increase in September was “less compelling”. This has already been reflected into market pricing, with interest rate futures suggesting only a 20% chance of the Fed increasing rates next month. Today’s focus for markets will be with Eurozone money supply and lending data at 08:00 GMT, together with further details and revisions to US GDP at 12:30 GMT. Note that Japanese jobs data is released overnight ahead of a weekend of lots of central bank speakers as they gather with others at the annual Jackson Hole summit.


Source link  
Yuan and Dollar as a weapon in trade wars

The US Nonfarm Payrolls on Friday could even be called boring: the report showed the preservation of a completely healthy labour market...

Disappointment with Fed and tariffs

Trump announced 10% tariffs on Chinese goods worth $300 billion since September 1, thus ending the US-China trade truce after disappointingly...

Fed pushes down stocks

Markets have started the week under pressure. Expectations that the Federal Reserve will cut interest rates by 50 points in July collapsed...


Gold updates new 6-years highs

Gold benefits from a combination of two factors: lower interest rates in debt markets and continuing hopes that the global economy...

Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...


Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...

Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

  


Share it on:   or