The suffering of sterling

30 September, 2015

We reach the last trading day of what has been a fairly turbulent quarter for both equities and also FX. At the beginning, many were convinced that the Fed were on course to tighten policy during it and were anticipating the dollar increasing as a result. As it happens, the dollar is only marginally firmer overall (looking at the dollar index), but on the wider picture has gained vs. sterling, the Swiss franc and the dollar bloc on the majors. Emerging markets are another story all together. For the moment, the last day is looking a little more comfortable than earlier this week, with equities modestly firmer. The news from Japan disappointing, with both industrial production and retail sales falling to the soft side. The yen was mixed, but has sustained the move below the 120 level on USDJPY.

The interesting one has been sterling, with interest rate markets having been pricing out tightening, with the first move in rates now seen in the latter half of next year. This has drive the move above the 0.74 level on EURGBP, whilst cable was yesterday nudging level last seen early May. Carney spoke last night, but decided to talk about the environment, perhaps having given up on trying to guide markets on the timing of the first rate hike. For today, we have the final reading of GDP in the UK, with inflation data for the eurozone and the ADP release for the US ahead of Friday’s payrolls data. Volatility likely to be on the higher send given we are at quarter end.


Source link  
Fed Speakers Take Centre Stage

Fed Member Mester is due to speak at the Central Banking Series hosted jointly by the Global Interdependence Center and Bank of France, in Paris...

Markets Steady Ahead of Euro Open

After further increases in stock markets yesterday, the market is pausing and consolidating ahead of European trading. Asian equity markets are in the green...

Oil Inventories to Show a Draw

Expectations (Apr) are expected to be released with a prior reading of 16.7. This data has been weakening since a reading of 52.0 was recorded in...


Chances of RBA Rate Hike

NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh...

Consumer Sentiment Index Close to Higher

US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...

Chinese president soothes worries

With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...


Markets fall after more tariffs proposal

Friday's session is expected to be volatile, with Non-Farm Payrolls (13:30 UK Time) ahead and President Trump’s proposal for an additional $100B...

Korea gets exemption on steel tariffs

The US and South Korea have reached agreement on a Trade deal that comes with the added bonus for South Korea of a permanent exemption from...

EU Publishes List of Tariffs on US Goods

Over the weekend, the EU published a list of tariffs on US products in response to the US tariffs on Steel and Aluminium. The total value of EU tariffs...


In the past 24 hours Bitcoin has gained 0.87% and reached $8389.85. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.1691% and is now at $1.1809. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -0.75% and is now at $713.473. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM88%
3HYCMHYCM86%
4FxProFxPro82%
5FIBO GroupFIBO Group81%
6FXCMFXCM71%
7HotForexHotForex70%
8XMXM69%
9Alfa-ForexAlfa-Forex68%
10Grand CapitalGrand Capital65%
  


Share: