Positioning for volatility

4 November, 2015

This week is turning out to be something of a waiting game for FX markets, given the swathe of UK events scheduled for Thursday and Friday’s payrolls data in the US. Ahead of that, we’ve seen the latest PMI data from China come in slightly better than expected overnight, with this helping a better tone to Asian stocks and also underpinning the better tone to the Aussie gained in the wake of the interest rate decision yesterday. AUDUSD is challenging the 0.7220 level, but struggling to hold above it for the time being. Sterling will be focused on the services PMI data today, which has been falling for the prior four months and given the extent of the turn-around seen in the manufacturing data earlier in the week, the market expects 54.5 (from 53.3).

The point in the UK is the long time until which a hike is fully priced in, which is currently fully priced for October of next year. It’s this which is most vulnerable tomorrow should the Inflation Report come out with a more hawkish tint, which would be supportive for sterling. EURGBP has been pretty relentless recently in its move lower, which could be enhanced in this scenario, pushing the cross back towards the 0.70 level. We also see trade balance and ISM data in the US today, with the latter seen steady on the final services measure. Overall, the market is still pricing nearly 50:50 chance of a Fed hike mid-December, so we’re going to see the dollar become increasingly sensitive to data releases as this meeting draws ever nearer.


Source link  
Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...

Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...


Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...

Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...


U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...

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...


In the past 24 hours Bitcoin has lost -0.72% and reached $3438.9627383. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.4129% and is now at $1.1327. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -11.26% and is now at $90.1242869914. 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
1easyMarketseasyMarkets92%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9AvaTradeAvaTrade80%
10FXCMFXCM78%
  


Share: