Commodity concerns

23 November, 2015

This week commences on a soft note for European indices following a good month that saw the best weekly performance from global stocks in just over a month. Increased security tensions across Europe and a continued downward spiral of commodity prices means we’re going to see a softer open for equity markets this morning and sentiment is likely to be tested further with a very quiet week ahead on both the economic and corporate data front, culminating in the two day Thanksgiving celebrations in the US.

Markets are being pulled by big forces in different directions with some investors seeing the expected extension to monetary easing from the ECB next week to provide further impetus for equity markets, meanwhile the prospect of tightening from the Fed next month at a time of slowing global growth, as evidenced by weaker commodities, is a reason to be more bearish. This continues to put downward pressure on EURUSD which is lower this morning at 1.0620 having already tested the 1.0600 level. Eurozone services and manufacturing PMIs this morning will be watched closely and then this afternoon there’s US manufacturing PMI and home sales data which could help the dollar in its next leg higher.


Source link  
Divergence Between Fed and BoJ

The March FOMC meeting will be held for two consecutive days from today. The interest rate decision will be announced at 18:00 GMT on Wednesday 15th March...

Market Volatility Expected Ahead of President Trump's Speech

In a speech that will be watched by millions of viewers in the United States and around the world, the President is expected to speak of his presidency and address pressing issues like his plans for health care, the tax system, the military, and his goals for his administration...

Gold Trades Below Resistance Ahead of the Fed and NFP

We will see the release of the US ISM Manufacturing PMI, and ISM Prices Paid for January, at 15:00 GMT on Wednesday 1st February...


Sterling Struggles Ahead of Theresa May's Speech

Theresa May will make a speech outlining her plans for Brexit tomorrow, Tuesday 17th Jan, before the UK triggers Article 50 to leave the EU...

Dollar Turn-around on Trump's Press Conference

President Elect Trump's first press conference after his victory in the US presidential election, was held yesterday around at 16:00 GMT. It has caused great volatility to the dollar and the markets...

Gold Nears Major Resistance Ahead of Trump’s Press Conference

Gold prices have rebounded since mid-Dec after testing the significant support line at 1120. On the 4 hourly chart, gold bullish momentum has been strengthened since the beginning of this year, helped by the dollar retracement...


Searching for a new narrative

Popcorn at the read today as President elect Trump has a scheduled news conference later in the day (around 16:00 GMT). Markets have become used to listening to him in 140 characters or less over the recent weeks, so a more elongated narrative should be welcome...

The sterling conundrum

Yesterday's early weakness in sterling, on the back of the latest comments from PM May surrounding Brexit, took cable close to key support levels and the resilience seen through most of the post US election period has been unwound...

Selling into USD strength

In summary, Friday US jobs report was pretty much in line with expectations, although the slightly better data on earnings gave some support to the dollar into the end of the week. As a result, the US currency was little changed from Tuesday opening levels...

  


Share: