Dollar retreat

1 December, 2015

The dollar has been in retreat overnight as the risk environment at the start of the new month is positive. The latest PMI data in China was largely shaken off, the headline manufacturing series falling marginally from 49.8 to 49.6. The best illustration of the better risk tone has been the Aussie, AUDUSD pushing levels last seen since mid-October above the 0.7283 level, as the RBA leaves rates unchanged after its latest meeting. As we’ve pointed out before, the Aussie has shown a lot of resilience recently, helped by the fact that the secular bearish forces that have been pushing it lower over recent years could well be over. The kiwi has also been pushing ahead, pushing above the 0.6650 level on the strength of the latest house price data. Elsewhere, the euro has also seen some recovery, but the moves have naturally been a lot more muted ahead of Thursday’s crucial ECB meeting, EURUSD currently stalling just below the 1.06 level.

Today sees final PMI data for the Eurozone, with German labour market data also released just before 09:00 GMT. More risk comes from the UK manufacturing PMI data at 09:30 GMT, given no preliminary numbers are released beforehand. Cable touched the 1.50 level yesterday, but not on a sustained basis and the overnight dollar weakness has taken it back to the 1.51 level. This should keep the bears contained for now, but given the moves we’ve see on short-term interest rates, cable continues to look vulnerable to further losses. EURJPY continues to sit on the 130 level, as has been the case for the past week now.


Source link  
All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...


US Data brings on USD bulls

U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...

Biggest Quarterly Drop in 7 Years

USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...


Global Economic Optimism Continues

Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD...

BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...

Final Confirmation for a June Rate Hike

The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...

  


Share: