RBA keeping the easing door open

2 February, 2016

US stocks clawed back their opening losses into the NY close on the back of comments from Fed vice chair Fisher, who suggested that the Fed does not have a pre-determined path for rates. The comment also weighed on the dollar into the close. It was no great surprise to see the RBA keeping rate steady, but the Aussie did nudge lower as the statement left open the door for further easing ahead, should inflation developments allow. The RBA is focused on the recent improvement in the labour market, whilst keeping a close eye on the volatility in global markets. The Reserve Bank of India also kept rates on hold as expected, with the rupee trading weaker overnight. The long road to the next US President started overnight, but it’s far too early in the process for markets to get excited.

The other interesting price action overnight was on the yen, where the currency gradually strengthened as stocks remained in negative territory. Naturally, there is a reluctance to go long the yen after the events of last week, but in the bigger picture, whilst the move wrong-footed the markets, the actual impact of a negative interest rate on the economy and inflation is likely to be pretty minimal. The structural forces that have been working to strengthen the yen could well gradually come to the fore again over the coming weeks and months. The initial focus today will be with the labour market data in Germany, where the rate is seen steady at 6.3%. Thereafter, the bigger focus is the degree to which markets are going to return to the trends seen earlier in the year (e.g. weakness in oil, strength in ye, weakness in commodity currencies and sterling). The oil price was reversing through yesterday’s session, with few signs that OPEC output is going to be curtailed to support the price.


Source link  
Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...

Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...


Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...

Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...


U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...

Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...


In the past 24 hours Bitcoin has lost -1.34% and reached $3435.68885033. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.0395% and is now at $1.1371. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -8.96% and is now at $90.5745668728. 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
1easyMarketseasyMarkets92%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9AvaTradeAvaTrade80%
10FXCMFXCM78%
  


Share: