Lower growth, lower inflation

30 October, 2015

Yesterday’s US GDP data complimented the weaker than expected UK GDP figure from earlier in the week giving yet another piece of evidence of slowing growth. The dollar didn’t react much to the softer numbers as normally you would expect a sell off after such a release, but Wednesday’s FOMC statement remains firmly in the mind of investors and we’ve seen the probability of a rate rise in November increase a little. With growth lower the focus on inflation will increase into year end and we saw the BOJ overnight delay their 2% inflation target by six months to the second half of 2016. The Yen weakened initially with USDJPY moving up to 121.50 but since has retraced back to 120.75 at the time of writing.

Being the last day of trading for October There could be some volatility today which we’ve already seen in USDJPY. Next week is a very busy one for the economic calendar with manufacturing and services surveys from both sides of the Atlantic, the Bank of England Inflation Report and then a nonfarm payrolls finale.


Source link  
Politics Influence Markets

With fears abating surrounding the threat of Catalan independence, the EUR moved higher overnight. Catalan President Puigdemont stated...

US Unemployment at Lowest Level

On Friday, the US Department of Labour released Nonfarm Payrolls for September. The meagre forecast of 88K was beaten with an even worse...

Further Strong Data From the US

On Wednesday, the US Institute for Supply Management (ISM) released Non-Manufacturing PMI for September that surprised the market...


Upbeat Data Boosts Dollar

On Monday, the US Institute for Supply Management (ISM) released data showing the index of national factory activity surged to a reading...

Harvey & Irma Effects Still Evident

The EUR suffered a second day of selling pressure, as the markets are growing concerned that the rise in right wing nationalism witnessed...

Risk-On or Risk-Off?

The rhetoric continues between North Korea and the United States with North Korea’s Foreign Minister, Ri Yong Ho, describing President Trump’s recent comments as “tantamount...


German & New Zealand Elections

The results of the German Election have re-elected Chancellor Angela Merkel for a fourth term. Her CDU party won fewer votes than was expected and Chancellor Merkel...

Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

  


Share: