Fresh Aussie pressure

24 May, 2016

It’s the Aussie and euro feeling the pressure at the start of the European session and for very different reasons. The Aussie has reacted to comments from RBA Governor Stevens, where he talked in more detail about the continued low inflation outlook, with indications that he expects this to persistent for foreseeable future. This has given some life to expectations of further rate cuts, hence the push towards the 0.7060 level as we enter the European session. Meanwhile, the euro appears to be finding the going tougher as the dollar becomes more confident regarding the prospects of a tightening of rates as early as June. Furthermore, ahead of the main G7 meeting later this week, investors are becoming more cautious of going long the yen vs. the USD, even though the indications from this weekend’s meeting of finance ministers and central bank governors suggested there was a wide gap between the US and Japan on the appropriate response.

With less than a month go to until the EU referendum in the UK, BoE Governor Mark Carney appears before the UK Parliamentary Treasury Committee today. He’s been in some hot water in recent weeks for appearing to favour remaining in the EU, which does not fit with the Bank’s remit of independence and impartiality. Expect him to have a tough time of it. Meanwhile, the currency appears to be gaining more confidence that the result will be a win for the ‘remain’ camp, but the result is far from a done deal at this point in time. As such, we’re likely to see sterling continuing to take greater notice of polls in the coming days.


Source link  
USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

Positive data negated by tax plan opposition

The US Labor Department released data on Wednesday showing the consumer price index edged up by 0.1% in October after climbing by 0.5%...

Data Boosts EUR Can CPI Boost USD?

EUR received a boost on Tuesday, as data from Destatis showed German Preliminary GDP climbed to 0.8% in Q3, beating forecasts of 0.6%. In addition...


Chinese Data Disappoints

China’s economy has been robust throughout 2017 as a continued recovery in manufacturing and industrial sectors, a healthy property market...

Data & Polls Pressure Sterling

Sterling suffered downward pressure on Tuesday as the latest monthly report from the British Retail Consortium showed non-food sales slumping...

Closing the Year on a Strong Note

Data released on Monday indicates that the Eurozone economy is on target to close out 2017 strongly. The latest Markit composite PMI fell...


Sterling Falls on Rate Rise

In line with market expectations, the Bank of England raised the UK base rate to 0.5% (from 0.25%) on Thursday. The rise, the first in 10 years, was widely...

Another Political Headache for Trump

USD gave up some of its recent gains on news that investigators had charged President Trump’s former campaign manager regarding...

US Jobless Claims Lowest Since 1973

US Department of Labor released Initial Jobless Claims for the week ending October 13th that showed a resilient and stable labor market...

  


Share: