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  
Politics Influence Markets

With fears abating surrounding the threat of Catalan independence, the EUR moved higher overnight. Catalan President Puigdemont stated...

US Unemployment at Lowest Level

On Friday, the US Department of Labour released Nonfarm Payrolls for September. The meagre forecast of 88K was beaten with an even worse...

Further Strong Data From the US

On Wednesday, the US Institute for Supply Management (ISM) released Non-Manufacturing PMI for September that surprised the market...


Upbeat Data Boosts Dollar

On Monday, the US Institute for Supply Management (ISM) released data showing the index of national factory activity surged to a reading...

Harvey & Irma Effects Still Evident

The EUR suffered a second day of selling pressure, as the markets are growing concerned that the rise in right wing nationalism witnessed...

Risk-On or Risk-Off?

The rhetoric continues between North Korea and the United States with North Korea’s Foreign Minister, Ri Yong Ho, describing President Trump’s recent comments as “tantamount...


German & New Zealand Elections

The results of the German Election have re-elected Chancellor Angela Merkel for a fourth term. Her CDU party won fewer votes than was expected and Chancellor Merkel...

Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

  


Share: