Calm before the storm?

28 October, 2016

The main interest on the majors overnight has been the move above the 105.00 level on USDJPY, which has continued the weaker yen theme prevalent through most of the month. Data overnight showed the core inflation rate (ex-fresh food) remaining in negative territory at -0.5% YoY. On the crosses, EURJPY is nearly back to the 115.0 level, with the euro having found its feet into month end, both against the dollar and also sterling, which is crawling slowly back towards the 0.90 level. All this is against the backdrop of lower volatility overall as we head into the US Presidential election. Can this be the calm before the storm? If we look back over recent US elections, then there is a weak case for greater volatility after the event. Indeed, the dollar index range tends to be around 20% lower in the 10 days after the election compared to the 10 days before. But this time around things may be different, particularly if a Trump victory comes to fruition. On the latter scenario, it’s less the domestic implications that will matter (taxes, spending etc.), more what international investors think. This was the case with sterling both in the run-up to the Brexit vote (especially Jan/Feb this year) and also after the event. The same will hold true, not least because the dollar is the most international currency there is.

For today, US GDP is the main focus later in the day, the annualised figure seen rising 2.6%. This should not majorly impact the dollar, unless we see a substantial deviation from this expectation. Otherwise, we should see a relatively quiet end to the week.

Source link  
Equity market causes investors confusion

As a turbulent December in equity markets draws to a close, there's one thing traders and investors can agree on: these are not usual times, especially...

Global debt exceeded $ 184 trillion

According to the International Monetary Fund (IMF), the global debt has achieved $184 trillion with $86,000 per person, a figure that is twice larger than...

Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...

Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...

Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...

Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...

U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...

In the past 24 hours Bitcoin has gained 0.85% and reached $3604.49774085. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.5351% and is now at $1.1563. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -4.35% and is now at $118.472353157. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Daily Forex Market Reviews

Forex Currencies Forecasts

Top 10 Forex Brokers 2019

# Broker Review
5FIBO GroupFIBO Group83%
10FP MarketsFP Markets69%