Now for Norway

17 December, 2015

The historical significance of the Fed rate hike last night was far more than its market impact, where the dollar was modestly firmer after the initial volatility, with even these modest gains starting to be given back against the yen. The FOMC statement and Yellen’s open remarks at the press conference contained no less than 8 references to ‘gradual’, with this continuing in the Q&A. Equities were also firmer, helped by Yellen’s positive words on the economy. So in the end, this was one of the most anodyne and most anticipated rate increases ever seen from the Fed. Things overshadowed by the Fed overnight include the better than expected GDP data in New Zealand, the economy expanding by 0.9% QoQ, but revisions to prior quarters saw the kiwi sag a little after the gains seen through most of the month. And once again, the yuan has weakened vs. the US dollar, USDCNY now up to 6.4757 on the mid-point.

There could naturally be a sense of wind-down in markets now that the Fed is out of the way. The following two weeks are peppered with major public holidays over the Christmas and New Year period. For today, sterling will be looking to retail sales data at 09:30 GMT, where the headline rate is seen recovering from the October weakness (0.5% MoM from -0.9% MoM). US data is restricted to weekly claims data and the current account balance for Q3. Norway’s interest rate decision at 09:00 GMT has hardly got a look in given the proximity to the Fed meeting, but there are some risks that the deposit rate is cut by 25bp from the current 0.75%, which would more than likely push EURNOK above the 9.60 level, which has not been breached on a closing basis since the crisis induced volatility of late 2008.


Source link  
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...

GBP Under Pressure

The Brexit negotiation process is one of the focuses of the upcoming UK election. Although the Conservative Party has pledged a smooth and orderly...


Oil Slumped Post OPEC Extension

On Thursday, OPEC announced that the existing output cut agreement will be extended for an additional 9 months...

USD Bounces From Month Low

Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion...

Dollar index hit a new low

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211...


USD Hit Post Election Low

To date the dollar index has almost given up all of the post presidential election rally...

BoE Expected to Keep Rates Steady

ECB Governor Draghi will make a speech in the Dutch Parliament at 12:00 BST today. It will be Draghi first speech...

Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

  


Share: