Corrective activity abounds

15 February, 2016

With US markets closed for President’s day today, it’s likely to prove a slower start to the week, but as we know, it’s not just about the US anymore, with much of the recent volatility being triggered by events beyond US shores. Overnight, we’ve seen weaker than expected data in Japan showing the economy contracted some 0.4% in the final quarter of last year. Japan has contracted in half of the previous 16 quarters, with only one period of contraction more than two quarters. In other words, it remains an economy struggling for sustained momentum. Data from China has also been mixed with exports falling markedly, although an even larger fall in imports allowed for a better than expected reading on the trade balance data. The volatility in markets continues unabated, with the Nikkei more than reversing Friday’s weakness, up more than 7% towards the close. USDJPY has reversed upwards as well, but in a relative sense the yen still remains on the firm side for the month so far.

Elsewhere in the world of FX, the modestly corrective tone continues, with the Aussie higher from the Thursday lows and the euro also correcting from the firmer tone seen of late. Equities also starting on a firmer footing, with financials leading the gains once again. Gold is more than 2% weaker in Asia trade, but after the sharp gains seen last week, that’s merely a rounding area in light of recent moves. The yuan has appreciated substantially, with comments from PBOC Governor also helping over the weekend to curb speculators on the currency. Note that ECB President Draghi speaks in front of the European Parliament later today (scheduled for 14:00 GMT) and in light of the lack of US data, this could drive sentiment in the latter half of the European session.


Source link  
Trump pulls out of peace summit

The US President dominated headlines and moved the market again yesterday when he wrote a letter to the North Korean Leader announcing his decision...

UK Consumer Price Index data

Eurozone Markit Manufacturing PMI (May) is expected to come in at 56.0 from 56.2 previously. Markit Services PMI (May) is expected at 54.6 v 54.7 previously...

FOMC Members will be speaking today

This shows a healthy economy with the 2018 average at a higher level than previous years. Slip under zero can cause a market reaction but is not...


Fed Speakers Take Centre Stage

Fed Member Mester is due to speak at the Central Banking Series hosted jointly by the Global Interdependence Center and Bank of France, in Paris...

Markets Steady Ahead of Euro Open

After further increases in stock markets yesterday, the market is pausing and consolidating ahead of European trading. Asian equity markets are in the green...

Oil Inventories to Show a Draw

Expectations (Apr) are expected to be released with a prior reading of 16.7. This data has been weakening since a reading of 52.0 was recorded in...


Chances of RBA Rate Hike

NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh...

Consumer Sentiment Index Close to Higher

US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...

Chinese president soothes worries

With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...


In the past 24 hours Bitcoin has lost -2.64% and reached $7348.96. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.91% and is now at $1.1666. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -18.85% and is now at $578.216. 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
1easyMarketseasyMarkets89%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group81%
5FxProFxPro78%
6FXCMFXCM71%
7HotForexHotForex70%
8XMXM69%
9Alfa-ForexAlfa-Forex68%
10Grand CapitalGrand Capital65%
  


Share: