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  
Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...

Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...


Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...

Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...


Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...

May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...

Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

  


Share it on:   or