Christmas rally comes late

23 December, 2015

The Christmas rally is coming later this year with European equities moving higher on today’s open, but we are still some way off seeing indices posting gains for the month. With a bounce in crude prices overnight, which look like for now to have found a bottom with support around the mid $30 level, the mining and energy sectors are benefitting from some bargain hunting. A shadow of their former selves these stocks have performed woefully throughout the year and where there’s any bounce in commodity prices there’s going to be a corresponding move in these sectors. Whilst the relationship between commodity prices and the Aussie is not as strong as it was, there is still a correlation and we’ve seen AUDUSD move up from the 0.7100 level this week, now sitting at 0.7245.

Today sees the final reading of UK GDP for Q3 which is due to confirm a reading of 0.5% so the impact on sterling is likely to be minimal, but there’s a lot of US data later in the form of durable goods, Michigan consumer sentiment and new home sales that could cause some movement in the dollar especially since volumes are likely to dwindle over the next two days. With GBPUSD being on the back foot recently this morning’s bounce to 1.4850 could be short lived if the US data is better than expected.


Source link  
CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...

No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...

CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...


No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...

OPEC Extends Output Cuts

On Thursday, OPEC (Organization of Petroleum Exporters) and non-OPEC producers led by Russia agreed to keep output cuts until the end of 2018...


US Economy Expands Faster Than Predicted

Data released on Wednesday showed that the US economy expanded at its quickest pace since 2014 in Q3. The US Commerce Department said that...

Political Turmoil in Germany Hurts EUR

The EUR lost ground against many of its peers on Monday on news that Chancellor Angel Merkel’s efforts to form a coalition government had collapsed...

USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

  


Share: