Some stability for now

28 June, 2016

All the jokes about the UK exiting Europe twice in one week have been made, so we’ll move on swiftly from that. Markets have seen some reversal from the sharp sell-off of recent days, cable having managed to crawl its way up to near the 1.33 level. Hardly anything to shout about given the extent of recent moves. Equities are also opening slightly to the upside, but this follows on what has been a brutal two sessions, especially in bank stocks, where we’ve seen losses not seen since the depths of the financial crisis back in 2008. The UK has lost its triple-A credit rating from S&P (as well as Fitch), seeing it downgraded two notches to AA. In essence, the UK government bond market appears not too bothered, the 10 year yield holding below the 1.0% level. Two reasons for this. Firstly, ratings agencies generally tell us what we already know, so it’s more a loss of face rather than a new indicator. Secondly, there has been a sizable shift in monetary policy expectations both in the UK and beyond, which is supporting bond markets. A rate hike this year has all but been priced out of the US market, with some risk of an easing priced. In the UK, decent risk of lower rates at the next MPC meeting mid-June has been priced, with some chance that the Bank meets earlier to adjust policy. Best keep on your toes.

Looking beyond the UK and Brexit, we’re seeing some softness on the Swiss franc and also the yen, the latter having moved away from the 100 level on USDJPY. The yuan has also weakened against a resurgent US dollar, which has added a new layer of policy uncertainty for the PBOC, who were previously happy to see a relatively stable USDCNY rate. Overall, the data calendar today contains nothing of significance, with markets far more focused on the pronouncements of policy-makers and in particular central bankers, with ECB’s Draghi expected to speak shortly.


Source link  
Oil Inventories to Show a Draw

Expectations (Apr) are expected to be released with a prior reading of 16.7. This data has been weakening since a reading of 52.0 was recorded in...

Chances of RBA Rate Hike

NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh...

Consumer Sentiment Index Close to Higher

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...


Chinese president soothes worries

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...

Markets fall after more tariffs proposal

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...

Korea gets exemption on steel tariffs

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...


EU Publishes List of Tariffs on US Goods

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...

Consumer Price Index and Housing Starts

Eurozone Consumer Price Index – Core (YoY) (Feb) will be released. The consensus points to an unchanged value of 1%. Consumer Price Index...

USD Weakens as Risk-Off Returns

Yesterday, the US announced Tariffs on Steel and Aluminium, which prompted an outcry from various global leaders and an acceleration in the...


In the past 24 hours Bitcoin has lost -7.58% and reached $8820.96. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.2229% and is now at $1.2229. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 17.01% and is now at $619.555. 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
1easyMarketseasyMarkets90%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro84%
5FIBO GroupFIBO Group82%
6FXCMFXCM70%
7XMXM68%
8Fort Financial ServicesFort Financial Services67%
9Alfa-ForexAlfa-Forex66%
10HotForexHotForex66%
  


Share: