Watching yen crosses

21 October, 2015

As I talked about yesterday, one of the factors that has been crushing FX volatility recently has been the removal of near-term rate move expectations, principally from the Fed, but also from other central banks. We’re going to have more indication on this over the next couple of days with the Bank of Canada decision today and the ECB tomorrow. Overnight, we’ve also seen the Reserve Bank of Australia strike a relatively bullish tone in their latest set of minutes, which gave some further legs to the Aussie rally. There are some residual thoughts of one further easing, but this is looking less likely at the present moment in time.

Looking to today’s decision from the BoC, recall that they have cut rates twice this year, being one of the first to cut rates during the global easing phase earlier in the year, anticipating the weakness in the economy in the first half of the year. There have been signs of recovery since then, so the focus today is more with the accompanying statement, rather than chance of a cut in rates, which looks pretty slim. The ECB was also sounding more confident yesterday in its latest Bank Lending Survey, which suggested that QE was having an effect. Today’s data releases are going to take a back seat in relation to the central bank events. EURJPY continues to look the most interesting cross for the time being, having bounced off trendline support for the past several days, which comes in at 135.34 today.


Source link  
Gold updates new 6-years highs

Gold benefits from a combination of two factors: lower interest rates in debt markets and continuing hopes that the global economy...

Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...


Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...

Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...


Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...

Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

  


Share it on:   or