Finding the post-Brexit equilibrium

5 July, 2016

The post-Brexit roller-coaster has faded as a dynamic for markets, which is at least allowing us to get a clearer picture of what markets are really looking at. Dealing with sterling first, cable is now much more attuned to any material signs of the impact of Brexit on the economy and elsewhere. We’ve seen steady selling pressure on sterling since the European open, pushing cable below the 1.32 level. Standard Life have suspended redemptions in one of their property funds, which should perhaps not be that much of a surprise given the inherent illiquid nature of investments vs. investors. We also have Services PMI data at 08:30 GMT, but again this is too early to have a proper reading of the economy post-Brexit. Note that BoE Governor Carney speaks again this morning at the publication of the Bank’s Financial Stability Report.

In equities, stock markets are feeling a little more sanguine after last week’s gyrations and head of the US jobs numbers at the end of the week. The FTSE100 has done well, but that’s largely down to the make-up of its constituents, a decent proportion of whom price in dollars and have therefore benefited substantially from the recent exchange rate movements.

The main interest overnight was with the RBA, where we had at steady rate decision. That was largely expected, with the central bank probably wanting for a better picture of inflation outlook before assessing the outlook for rates. On balance, the Aussie has been broadly steady overnight, holding above the 0.75 level. Further rate cuts look likely this year, which could well put further pressure on the Aussie in the bigger picture.


Source link  
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...

Volume of data put US in focus

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%...

Markets wait for new Fed chairman Powell

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...


In the past 24 hours Bitcoin has gained 6.64% and reached $8868.89. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0% and is now at $0. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 21.46% and is now at $609.166. 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: