Moving on from G20

29 February, 2016

The weekend meeting of G20 finance ministers and central bank governors created a lot of noise, but little in the way of consensus regarding the way ahead or on policy action. That was to be expected really. It’s hard to get 20 countries to agree on anything at the best of times, but when there are so many differing challenges facing the world, then it was never the case that they were going to come up with a solution at this weekend’s meeting in China. On exchange rates, they included the bland statement that they would “consult closely on exchange markets”. This language was not included in the last G20 statement back in September, so one could regard it as a shift, or rather a bland acknowledgement that will not lead to anything. The latter seems a lot more likely. We’ve seen the biggest move on the yen overnight, with USDJPY moving from 114.00 to 113.00 as the impression given is that the BoJ can do little more to impact the currency.

For today, we’ve got the initial estimate of February CPI data at 10:00 GMT, with the headline rate seen falling to 0.0% YoY, from the 0.3% reading seen in January. In essence, the remaining data is unlikely to rock the boat. It is the last trading day of what has been a very volatile month for many markets, so this in itself could make for a more volatile trading day than usual. The US employment report takes centre stage at the end of the week, although note that Japan labour market data is released overnight tonight, with initial and final PMI data being released for many countries tomorrow.


Source link  
Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

Corporate Earnings Lift US Stocks

Last week the US President Trump stated on twitter...

Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...


Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...

Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...

Will the French Presidential Election affect EUR?

The first round of the French presidential election...


USD Firms Ahead of Q4 GDP Final Reading

The dollar index has rebounded noticeably from a 4-and-a-half-month low of 98.85, helped by outperforming...

Divergence Between Fed and BoJ

The March FOMC meeting will be held for two consecutive days from today. The interest rate decision will be announced at 18:00 GMT on Wednesday 15th March...

Market Volatility Expected Ahead of President Trump's Speech

In a speech that will be watched by millions of viewers in the United States and around the world, the President is expected to speak of his presidency and address pressing issues like his plans for health care, the tax system, the military, and his goals for his administration...

  


Share: