New month, new paradigm

February 1, 2016

January felt like a very long month for most involved with markets, given the continued worries regarding China and the volatility seen in many asset markets. Friday’s move by the Bank of Japan proved to be the icing on the cake, although its eventual impact on the economy is likely to be a lot more muted. The impact on the yen remains in place, given that many were wrong-footed by the move. For currencies, the main take-away was that the conventional wisdom that prevailed going into the year (dollar stronger on Fed tightening) was largely blown away and all the signs are that markets are struggling to find what the new paradigm will be. Overnight, we’ve seen weaker PMI data in China, manufacturing data falling to 49.4, from 49.7, ahead of final PMI data in the Eurozone this morning.

Besides this, the data calendar is light for the start of the week, with naturally the US employment report taking the limelight on Friday The impact of this though it diminished by the change already seen in US interest rate expectations through the year so far, as the international environment has a greater bearing on US interest rate expectations. Ahead of that, we have two interest rate decisions to consider. Australia comes out overnight. Expectations are for no change, but the statement will be key for gauging any intention on the part of the central bank to ease rates later this year. This month is probably going to be a little too early for the RBA to take a stance but nevertheless the Aussie will be watching closely nonetheless. India also has an interest rate decision tomorrow, but the central bank looks to be constrained in its ability to ease rates, not least because of the weakness seen in the currency through most of January.

Publication source
FxPro information  FxPro reviews

September 23, 2016
Risk rating
The market is in need of a new narrative. The Fed meeting in December is too far off and for now, the US election is not something that entices excitement. With central banks on hold, markets are pushing the envelope in terms of risk...
September 23, 2016
Greenback regains some ground
On Friday, the evergreen buck regained some ground against other key currencies, as markets kept digesting the Fed’s latest policy decision...
September 23, 2016
Dollar rebounds slightly as precious metals are in a hot zone
The US Dollar rebounds after a substantial selloff led by the FOMC decision to leave the interest rate unchanged. The Dollar index, which tracks the US currency against major peers, recoiled with support at a 95.00 level on Thursday, adding 0.05% to the 95.36 price in the early Friday session...

OctaFX Rating
HotForex Rating
Fort Financial Services Rating
Larson&Holz IT Ltd Rating
FXTM Rating
OANDA Rating

24option Rating
OptionTrade Rating
EZTrader Rating
IQ Option Rating
Banc De Binary Rating
365BinaryOption Rating