EM continues to wobble as FOMC approaches

8 September, 2015

The South African rand hit a landmark low against the dollar yesterday with USDZAR breaching the 14.00 level for the first time ever as the South African Reserve Bank maintains its stance on refusing to intervene and we approach the FOMC meeting next week. Whilst expectations for a rate hike from the Federal Reserve this month have been scaled back, the Chinese story continues to dominate, in particular for those countries such as South Africa that have a large export exposure to China. As Africa’s second largest economy continues to slow, the concoction of all these ingredients makes any upside for the rand hard to see, especially if the China story continues to show a rapidly slowing economy.

Today the US markets return after their Bank Holiday and the economic calendar is a little busier. This morning sees another reading of Q2 Eurozone GDP figures which are expected to confirm the block’s economy slowed from 0.4% growth in Q1 to 0.3% in Q2, but given that we know of the Euozone’s sluggish growth we’re unlikely to see any big moves in the euro unless the figure is worse than expected, which could lead to some weakness.


Source link  
The precious metal has broken out

The precious metal has broken out from its descending wedge around 1331.00 and moved higher to create a lower high at 1361.80.The price then...

All Focus on US inflation data

The USD has weakened further overnight as the market awaits important US Data at 13:30 GMT. USDJPY broke down under 107.000, while...

Central Bank speakers start a quiet week

UK MPC Member Vlieghe spoke at the Resolution Foundation in London. Some of the comments made were: If there is less credit headwind to the UK economy...


Equities Face a Nervous Session

The global equity markets are bracing themselves for a stormy closing session this week, as data from Thomson Reuters Lipper unit shows US fund...

Super Thursday for the Bank of England

The Bank of England is expected to largely proceed as normal today on ‘Super Thursday’ when the central bank releases its policy decision and statement...

US Nonfarm Payrolls Today

Today is Non-farm Payrolls day in the US. This data release is generally one of the most important of the month, being a leading indicator of consumer...


Australian Dollar drops after soft data

The Australian dollar eased on Thursday following weaker-than-expected economic data. The Australian Dollar took an initial knock on Wednesday on...

Trump Supports a Strong Dollar

Markets have had a volatile session this week thanks to various US officials and yesterday was no exception, with President Trump speaking in Davos...

A Weaker Dollar is Good for the US

Yesterday, Senior US Officials took the lead from their President and made clear the US position on Trade. Commerce Secretary Wilbur Ross...

  


Share: