Inflation still a concern for FOMC

29 October, 2015

Markets interpreted last night’s FOMC statement as an admission that a December rate hike is still very much a possibility allowing the dollar to bounce and overnight Asian equities have weakened meaning a softer open for indices is expected in Europe. On the back of the statement EURUSD fell sharply taking it back below 1.1000 for the first time since September and this morning it trades at 1.0940 with the next major support seen at 1.0800, where if we see a break below we are likely to see an increase in calls for parity. Between now and year end makes the economic data all the more important as to whether the Fed does actually commence tightening in December and we see the penultimate nonfarm payroll of 2015 next Friday where a figure of 177k is expected, still less than the desired 200k, but up from September’s 142k. As we discussed in yesterday’s note inflation is still a big worry for the Fed and whether in two years time it will be back towards their target as interest rates are on the rise. On balance I still don’t expect a rate hike from the Fed this year.

Today sees business and consumer sentiment from the Eurozone where a weak reading could put further pressure on EURUSD, but the main focus is US GDP data released at 12.30 GMT. Overnight the an interest rate decision from the BOJ could also provide some volatility ahead of tomorrow’s last session of the month.


Source link  
Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...

Rebound in Asian markets intensifies

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having...


Reasons to rebound EM indices

Asian markets are adding after reaching 14-month lows the day before. Positive markets are supported by the reports about China's invitation to trade...

Strong data supports U.S. markets

Stocks of the Emerging Markets remain under pressure on Wednesday morning, with positive sentiments prevailing in American markets following...

Pound press dollar on news about Brexit

Michael Barnier, the EU's top negotiator on Brexit, called a reaching of the agreement on the deal within next 6-8 weeks realistic. This news supported...


Brent reversed from resistance level

Brent Crude Oil recently reversed down sharply from the major, multi-month resistance level 79.50 (which has reversed the price multiple times from the...

EM Markets sale-off spreading to DM

The current weakness on the developing countries financial markets is the longest since 2008. The similarities go further than that: as well as 10 years ago...

The price for trade uncertainty

The markets are cautiously on buy for American stocks, and the dollar adds on fears that trade conflicts are seriously stifling the business sentiment...


In the past 24 hours Bitcoin has gained 3.61% and reached $6537.20481725. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.5919% and is now at $1.1596. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -9.76% and is now at $207.105881244. 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
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: