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  
Political Turmoil in Germany Hurts EUR

The EUR lost ground against many of its peers on Monday on news that Chancellor Angel Merkel’s efforts to form a coalition government had collapsed...

USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

Positive data negated by tax plan opposition

The US Labor Department released data on Wednesday showing the consumer price index edged up by 0.1% in October after climbing by 0.5%...


Data Boosts EUR Can CPI Boost USD?

EUR received a boost on Tuesday, as data from Destatis showed German Preliminary GDP climbed to 0.8% in Q3, beating forecasts of 0.6%. In addition...

Chinese Data Disappoints

China’s economy has been robust throughout 2017 as a continued recovery in manufacturing and industrial sectors, a healthy property market...

Data & Polls Pressure Sterling

Sterling suffered downward pressure on Tuesday as the latest monthly report from the British Retail Consortium showed non-food sales slumping...


Closing the Year on a Strong Note

Data released on Monday indicates that the Eurozone economy is on target to close out 2017 strongly. The latest Markit composite PMI fell...

Sterling Falls on Rate Rise

In line with market expectations, the Bank of England raised the UK base rate to 0.5% (from 0.25%) on Thursday. The rise, the first in 10 years, was widely...

Another Political Headache for Trump

USD gave up some of its recent gains on news that investigators had charged President Trump’s former campaign manager regarding...

  


Share: