Geo-political tensions increase

6 January, 2016

It is the yen that has really run away to the upside so far this week (and year), but at the other end of the scale, it’s mostly the commodity currencies that have struggled on the majors. The CAD is of particular note as USDCAD threatens a sustained push above the 1.40 level. A further easing from the Bank of Canada cannot be ruled out and it is divergence in underlying interest rate policy that is a very powerful fundamental driver of currency trends. For this reason, the Canadian jobs data this Friday could eclipse the US release for its significance to currency markets. Overnight, we’ve seen a further rise in the USDCNY reference rate and modest recovery in the stock market in China, this despite the latest Caixin PMI services data falling short of expectations at 50.2 (from 51.2). Geo-political tensions remain high with the news that North Korea tested its first Hydrogen bomb overnight. Naturally the Korean won added to yesterday’s weakness, pushing up just shy of the 1200 level.

For today, markets will be attempting to squeeze some juice out of the latest FOMC minutes from the December meeting. Given that they raised rates, the main focus will be any fresh indications of what will decide further policy moves. The accompanying statement was fairly detailed on this front and given the accompanying press conference, the risk is low that the minutes throw a curve-ball that will impact markets, but investors will be on their guard nonetheless. Before the FOMC minutes, we have final PMI data in the Eurozone at 09:00 GMT, with UK services data at 09:30 GMT. There is also services PMI data in the US and durable goods data.


Source link  
USD weakens as Supreme Court rules

Markets have maintained the themes from yesterday overnight with the USD showing weakness on the back of poor Philly Fed data. The US Supreme Court...

OPEC meetings in the spotlight today

OPEC, JMMC meetings are taking place today in Vienna with agreement on production levels high on the agenda. This can impact on prices in Oil markets...

Markets are taking a breath right now

Whether this turns into a broader rally or the selloff is resumed remains to be seen. Stock markets are higher after support was found in the European...


Trump wants a further $200 Billion of tariffs

While there was risk yesterday from Central Bankers very little was said to move the market. Instead the Trade War narrative boiled up again with the latest...

Oil down over 4% from Friday's open

OPEC and non- OPEC members are meeting in Vienna on Thursday for the start of a 3 day summit where production cuts are on the agenda...

ECB sparks huge moves in the Euro

The ECB dominated markets yesterday as they shifted their policy stance and signalled their exit from QE. The Bank is looking to reduce its bond buying by...


FOMC meeting results in a weaker dollar

The FOMC raised rates by 0.25 bps yesterday evening to a 1.75% to 2.00% target range in a hawkish move and reaffirmed its expected forecast of 2 more...

Progress made between Trump & Kim

US President Trump and North Korean Leader Kin Jong Un met in Singapore overnight. Progress was made between the two leaders during this first meeting...

Poor British statistics presses on sterling

Britain's statistics continue to indicate a slowdown in the UK economy. Today's data showed a decline in industrial production by 0.8% during April against...


In the past 24 hours Bitcoin has lost -5.01% and reached $6407.08. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0% and is now at $1.1605. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -1.41% and is now at $495.432. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets88%
2FXTMFXTM87%
3HYCMHYCM85%
4FIBO GroupFIBO Group80%
5FxProFxPro77%
6FXCMFXCM74%
7Alfa-ForexAlfa-Forex72%
8HotForexHotForex71%
9FP MarketsFP Markets70%
10XMXM69%
  


Share: