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  
OPEC considering deeper cut to oil production

Global oil-producing group OPEC and its allies are meeting in Vienna, with expectations raised over whether the alliance will make further cuts to its output...

Peaked trade optimism?

Throughout the past week, the US dollar has received support after strengthening expectations that the Fed will take an extended break after three consecutive rate cuts...

Russel 2000 doesn't support S&P500 optimism

S&P500 closed Monday at historical highs, adding 0.55% on the day close. Both expected new Fed interest rates cut and possible...


Oil drops on weak corporate data out of China

Oil prices fell on Monday after strong gains last week, as data released in China reinforced signs that its economy is slowing, though progress...

Market Sentiment Hinging On Progress In Brexit

The British parliament will vote on the Brexit agreement today at 18:00 GMT. In theory, this should be a simple vote, with a definite...

Market shows demand for yielding assets

The market shows demand for yielding assets, which in turn supports demand for the stocks and currencies of emerging markets. The main...


Yuan and Dollar as a weapon in trade wars

The US Nonfarm Payrolls on Friday could even be called boring: the report showed the preservation of a completely healthy labour market...

Disappointment with Fed and tariffs

Trump announced 10% tariffs on Chinese goods worth $300 billion since September 1, thus ending the US-China trade truce after disappointingly...

Fed pushes down stocks

Markets have started the week under pressure. Expectations that the Federal Reserve will cut interest rates by 50 points in July collapsed...