The faltering dollar

22 March, 2016

Sterling was suffering more than most yesterday, not impressed with weekend political developments, with the ever-present ‘Brexit’ cloud also hanging over it. Given these themes, the inflation data (released 09:30 GMT) will likely be of secondary interest, unless we see a major outlier from the expected small nudge higher in the YoY rate from 0.3% to 0.4%. The interest rate market remains more inclined towards a cut rather than hike in rates at the present moment in time, although with risk only priced around 10% towards the end of the year. We also see government borrowing figures published at the same time, which will perhaps be of greater interest given the ongoing discussions and changes being seen in the wake of last week’s budget.

After a two day turn-around, the dollar is weaker overnight even after comments from two Fed officials (Williams and Lockhart) suggesting that the next move could come as early as April. But both these are non-voting member this year, so the market took their comments with a degree of scepticism. Elsewhere, the single currency will be watching the latest PMI data early on, with provisional data for April released. In overnight trading, then yen has been the standout, weakening further against the dollar and pulling USDJPY away from the 110.67 low of late last week. With the week shortened by the Easter holiday on Friday (in some countries), trading is likely to remain on the choppy side as market liquidity falls below normal levels.


Source link  
Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...

Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...


Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...


Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

  


Share it on:   or