A stronger footing for markets

16 February, 2016

The tone to markets this week is very different to last. We are seeing equities higher once again in Europe, with oil prices also firmed as speculation mounts that there may be some deal in relation to supply cuts between Saudi and Russia. This has allowed Brent to jump above the USD 34pb level. For currencies, naturally those currencies hit hardest by risk aversion are seeing the strongest rebound, such as the Canadian dollar and also the Aussie dollar. The RBA minutes overnight showed the central bank still relatively positive on the domestic economy, with no real sign that they see a need to cut rates further from their current level. That did not hold from the Bank of Korea, with one member voting for lower rates, pushing down the already weak Korean Won.

For today, the initial focus will be on inflation data in the UK, where the headline rate is seen nudging higher to 0.3%, from 0.2% previously. The pricing in UK markets has changed markedly over the past two weeks, with the risk of an easing from the Bank of England now priced into money markets. Weaker than expected data could well weigh on the currency, which itself has been under pressure for most of the month as sterling has been seen less of a safe haven currency in light of the turmoil being seen globally.


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: