Stabilisation doesn’t mean end to rout

September 2, 2015

For the second time this year some time out of the office has coincided with tumultuous movements in the financial markets. The first was back in January when the SNB removed its Swiss franc ceiling and a summer break has seen a considerable spike in volatility as Asian markets go into a tailspin. Not planning any more extended breaks for the rest of the year so perhaps the rout is over, but there remain a number of things that indicate this is unlikely to be the case. Whilst European indices are expected to bounce this morning, further evidence of a slowing China’s impact on the global economy came overnight in the form of weaker Australian GDP data. This pushed the Aussie down further to a fresh six and a half year low against the US dollar, finding support for now around the 0.7000 level.

Many central bankers have been citing their concerns over China throughout this year and the recent volatility will undoubtedly impact policy making. A rate hike from the Fed this month is looking less and less likely and this week’s nonfarm payroll number will play a huge role ahead of the decision on September 17th. Ahead of this today sees the release of the ADP private payroll data expected to come in at just over 200k and anything weaker than this will only serve to strengthen the argument for a December rate hike at the earliest.

Publication source
FxPro information  FxPro reviews

December 2, 2016
It's not the jobs numbers
It’s not bee the economy that has been driving the dollar over the past 3 weeks, of that we can be pretty sure. Rather, it’s been expectations of tax cuts and spending increases, together with incentives for dollar repatriation under the new President...
December 2, 2016
OPEC alliance stuck a global agreement
The Oil prices jumped on Wednesday after the organisation members agreed to pare production first time since 2008, to reduce global oversupply, which made the prices collapse by half since mid-2014...
December 2, 2016
Rebound continues in UK construction
The latest data on the UK construction sector was released this morning, and will likely be seen as positive overall as the recovery from the Brexit shock appears to be persisting. Despite this the FTSE 100 is under pressure this morning...

OctaFX Rating
Grand Capital Rating
HYCM Rating
FBS Rating
Larson&Holz IT Ltd Rating
XM Rating

365BinaryOption Rating
Beeoptions Rating
Porter Finance Rating
Anyoption Rating
OptionBit Rating
IQ Option Rating