Central bank divergence materialising

November 12, 2015

Overnight the Aussie has spiked following a big drop in unemployment with the rate falling from 6.2% to 5.9% leading to AUDUSD jumping to 0.7150. The 0.7000 remains a key support level for the Aussie below which it stubbornly refuses to dip below despite commodity prices remaining depressed and China’s economy continuing to slow at a pace. We’ve regularly discussed how the relationship between the Aussie and China has diminished so even though there are many calling for further weakness to the mid 0.6000 area, because of the breakdown of that relationship and the RBA’s slightly less dovish stance, the downside move has been hard to come by.

Today all eyes are on central bankers once again with firstly Mario Draghi who speaks to the EU Parliament at 8.30 GMT. Then later in the day we are bombarded by Fed speeches with Lacker & Bullard, then Yellen at 2.30 GMT, concluding with Evans afterwards. What will be key here is not so much whether there’s further evidence that lift off will happen next month, but any guidance as to how the cycle will unfold with the market expecting a gradual path of rate hikes. EURUSD will be the one to watch today as we are likely to see further divergence between the ECB and Fed, so the 1.0600 level is a major support level to keep an eye on.

Publication source
FxPro information  FxPro reviews

February 23, 2017
FOMC meeting minutes signal rate hike fairly soon – dollar unimpressed
The minutes from the most recent FOMC meeting three weeks ago – the first such meeting since Donald Trump’s presidential inauguration – were released on Wednesday afternoon...
February 23, 2017
Political instability hits the Euro
The Euro plummeted to a 6-week low in today’s trading session before slightly recovering as predictions of political instability swept through the European Union on the back of upcoming elections due out in the upcoming months...
February 23, 2017
Gold prices remained under pressure
The precious metal traded mostly sideways on Wednesday. Tuesday’s recovery helped gold to reverse all its early losses. Buyers returned the spot to the 1240 hurdle where the pair XAU/USD stood still the first part of the day...

FOREX.com Rating
Exness Rating
FXCM Rating
OctaFX Rating
FxPro Rating
XM Rating

Binary Brokerz Rating
24option Rating
UKoptions Rating
IQ Option Rating
365BinaryOption Rating
TopOption Rating