13 May, 2016
In the US at least, there are opposing forces on equities. Continued low interest rates and limited expectations of further tightening are offering support, but at the same time, some of the indicators on the economy have been softening of late. Furthermore, most economic surprise indices for the US (difference between expected and actual) have been falling of late, reflecting this run of disappointment. So do equities trade on the economy or the easy policy? In the early days of the crisis, it was always the latter than dominated. Now, it’s harder for that, not least because the marginal benefit from low rates has diminished rapidly. So it’s hard to see the policy outlook pushing equities substantially beyond the highs seen mid-April. Today, the retail sales numbers in the US will be in focus, perhaps more than usual given the weakness seen in the retail equities of late relative to the overall index.
In the FX world, we’re seeing the dollar firmer into the end of the week, with the Aussie taking it on the chin and back below the 0.73 level. Cable also touching the 1.44 level, with yesterday’s volatility in the wake of the BoE Inflation Report largely behind it. Meanwhile, the Brazilian Real has shown a classic “Buy the rumour, sell the fact” move on the back of the much anticipated impeachment of President Rousseff. The currency has performed well, despite the on-going weakness in the economy and public finances. Now comes the issue of just how quickly a new regime can turn things around. It’s not going to be easy and the Real has already priced in a lot of optimism.
US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...
With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...
Friday's session is expected to be volatile, with Non-Farm Payrolls (13:30 UK Time) ahead and President Trump’s proposal for an additional $100B...
The US and South Korea have reached agreement on a Trade deal that comes with the added bonus for South Korea of a permanent exemption from...
Over the weekend, the EU published a list of tariffs on US products in response to the US tariffs on Steel and Aluminium. The total value of EU tariffs...
Eurozone Consumer Price Index – Core (YoY) (Feb) will be released. The consensus points to an unchanged value of 1%. Consumer Price Index...
Yesterday, the US announced Tariffs on Steel and Aluminium, which prompted an outcry from various global leaders and an acceleration in the...
US Gross Domestic Product Annualized (Q4) was as expected at 2.5%, from 2.6% previously. Gross Domestic Product Price Index (Q4) was 2.3%...
The ECB’s Coeure spoke in Frankfurt at a working group meeting regarding euro risk-free rates. He said that a reform of reference interest rate will...
# | Broker | Review | |
---|---|---|---|
1 | ![]() | easyMarkets | 90% |
2 | ![]() | FXTM | 87% |
3 | ![]() | HYCM | 85% |
4 | ![]() | FxPro | 84% |
5 | ![]() | FIBO Group | 82% |
6 | ![]() | FXCM | 70% |
7 | ![]() | XM | 68% |
8 | ![]() | Fort Financial Services | 67% |
9 | ![]() | Alfa-Forex | 66% |
10 | ![]() | HotForex | 66% |