Slower growth could end risk rally

October 6, 2015

A strong rally in equity markets has come on the back of the weaker marco data as rate expectations are pushed back which makes risk assets more attractive. The issue investors face however is that if the global slowdown continues then this will impact corporate profitability further and the strength in equities we’ve seen in the past few days could be short lived. Investors look to be slowly but surely reducing the chances of a 2015 Fed rate hike as reflected in the currency and fixed income markets. The recent nervousness in financial markets and concerns over China is filtering through to the wider global economy as yesterday saw lacklustre services data not just from the US, but the Eurozone and in particular the UK which saw its lowest reading for the services PMI since May 2013. This translated into sterling weakness as GBPUSD retreated from the 1.5200 level again and it remains just above key support at 1.3450 on GBPEUR (just below resistance at 0.7435 for EURGBP).

Overnight there were no surprises from the RBA who kept rates on hold at 2% which led to a spike higher in AUDUSD back above the 0.7100 level and the Aussie sits at 0.7110 at the time of writing. For the remainder of today things are quiet on the economic data front but later on tonight there will be a speech from the ECB’s Mario Draghi and even later from the Fed’s voting member William who’s been calling for a hike in 2015.

Publication source
FxPro information  FxPro reviews

September 28, 2016
Asian shares traded in green as Europe slowly plunges
US Dollar can't get out of the range of 95.00-95.50 after the FED has investors waiting for the results of Algiers meeting, where Oil officials will try to work out measures to level energy market volatility...
September 28, 2016
Sagging Fed expectations
As discussed yesterday, markets will increasingly obsess about the US election over the coming few weeks, but beneath that the economy will determine if the Fed hikes interest rates before the year is out...
September 28, 2016
Market volatility on a comeback
Financial markets may experience extreme levels of volatility in the coming weeks as the catalytic combination of sporadic oil prices, ongoing Brexit anxieties and anticipation ahead of the U.S presidential election leave investors on edge...

Larson&Holz IT Ltd Rating
HYCM Rating
Orbex Rating
FOREX.com Rating
FXTM Rating
FBS Rating

Grand Option Rating
Porter Finance Rating
Beeoptions Rating
365BinaryOption Rating
Binary Brokerz Rating
OptionBit Rating