Tough but positive markets

2 March, 2016

There is a very different tone to markets in March compared to the start of February and January. We saw declines of 2% and around 1.5% respectively in the S&P500, compared to the 2.4% gain seen yesterday, with another positive day anticipated in the wake of the gain seen in Asia (both Japan and China up around 4%). In FX, the yen strengthened at the start of both months (1% January, 2.75% February), in contrast to the weaker tone seen yesterday. Supporting in the background has been the better tone to oil prices. Overnight, data has been supportive, with GDP data in Australian rising 0.6% QoQ; weaker vs. the (upwardly revised) previous quarter of 1.1% and firmer than expected. The Aussie is up by 1.3% so far this month, moving towards the key resistance of 0.7243 (which was touched but not broken today).

Despite the greater risk appetite being displayed in markets, it has to be said that February was not an easy month in any asset class and so far during March, the same seem to be holding true, at least in FX. Sterling was up and down like a yo-yo for most of yesterday’s session, with the same holding true for the Aussie and less so the yen. It creates an impression of a market that is struggling for direction but also trying to grab onto what exactly the key driver is. Even Brexit appears to have fallen from the headlines, at least as far as sterling is concerned, but that is likely to be temporary in my view. The US primaries overnight have seen Trump and Clinton push ahead, but so far markets are not really reacting, not least because we still have 8 months to go in terms of campaigning. There are no major data releases for today likely to rock the tone. So far, comments from ECB President Draghi, noting increased downside risks to the outlook, having not impacted the single currency, given that they largely reflect the data released this week. We’ve also seen Moody’s downgrade the outlook for Chinese government debt. This is not the main rating, more a warning shot and market were unmoved on the news.


Source link  
Trump wants a further $200 Billion of tariffs

While there was risk yesterday from Central Bankers very little was said to move the market. Instead the Trade War narrative boiled up again with the latest...

Oil down over 4% from Friday's open

OPEC and non- OPEC members are meeting in Vienna on Thursday for the start of a 3 day summit where production cuts are on the agenda...

ECB sparks huge moves in the Euro

The ECB dominated markets yesterday as they shifted their policy stance and signalled their exit from QE. The Bank is looking to reduce its bond buying by...


FOMC meeting results in a weaker dollar

The FOMC raised rates by 0.25 bps yesterday evening to a 1.75% to 2.00% target range in a hawkish move and reaffirmed its expected forecast of 2 more...

Progress made between Trump & Kim

US President Trump and North Korean Leader Kin Jong Un met in Singapore overnight. Progress was made between the two leaders during this first meeting...

Poor British statistics presses on sterling

Britain's statistics continue to indicate a slowdown in the UK economy. Today's data showed a decline in industrial production by 0.8% during April against...


Markets pause in anticipation

Yesterday's trading session saw a rotation from the NASDAQ and Tech into the Dow Jones and Industrials. The European Indices have under preformed this week...

RBA leaves rates at on hold 1.50%

Yesterday's session was quite after a pickup in volatility last week and there has been little in the way of movement overnight. This is despite some negative...

Inflation threats troubling markets

On Thursday the markets failed to develop growth momentum. Investors favoured a cautious tone towards riskier assets as the US imposed import tariffs on Canada...


In the past 24 hours Bitcoin has lost -1.72% and reached $6627.78. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.9545% and is now at $1.164. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 5.18% and is now at $522.547. 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
1easyMarketseasyMarkets88%
2FXTMFXTM87%
3HYCMHYCM85%
4FIBO GroupFIBO Group80%
5FxProFxPro77%
6FXCMFXCM74%
7Alfa-ForexAlfa-Forex72%
8HotForexHotForex71%
9FP MarketsFP Markets70%
10XMXM69%
  


Share: