Stabilisation doesn’t mean end to rout
2 September, 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.
Source link
Related materials
Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...
UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...
US equities closed at record levels on Wednesday, as improved risk-on sentiment returned to the markets and news that the US economy...
Hurricane Irma has, reportedly, inflicted less damage on the US mainland than was originally predicted, thereby reducing the economic impact of the devastation it was expected to...
With the markets risk appetite dampened after North Korea’s most powerful nuclear test to date, USD and Global equities fell whilst Gold, Yen and Sovereign Bonds all rose....
North Korea official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam...
Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned...
Recent data releases have shown that global manufacturing saw an increase in July, further confirming global economic momentum has carried into H2...
Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...
Top Brokers offering Daily Forex Market Reviews
Forex Currencies Forecasts
| # | Broker | Review | |
|---|---|---|---|
| 1 |  | Easy Markets | 90% |
| 2 |  | FXTM | 87% |
| 3 |  | FxPro | 84% |
| 4 |  | FIBO Group | 82% |
| 5 |  | HYCM | 73% |
| 6 |  | FXCM | 71% |
| 7 |  | Fort Financial Services | 70% |
| 8 |  | HotForex | 69% |
| 9 |  | FBS | 68% |
| 10 |  | 24option | 67% |
