European Caution

22 November, 2016

The dollar took the anticipated breather yesterday, but the overall tone remains firm, especially against the swiss franc and also the yen, together with the single currency. Sterling continues to put up a decent fight, nudging back up against the 1.25 level on cable, whilst EURGBP is bouncing off support at the 0.85 area. Stocks are also putting up a decent run, the S&P hitting a new all-time high yesterday. Naturally, European stocks are a little more circumspect in this environment, whilst the push higher on the Nikkei is mostly down the weaker tone seen on the yen. Trump has again re-iterated his intent to pull out of the Trans-Pacific Partnership trade deal when he takes office, which is one of the reasons why Asian emerging market currencies have been hit more than most in the post-election environment.

The reservations in Europe could well continue until the Italian constitutional referendum early in December (Sunday 4th), which is seen as the next major test of the European project. Some are billing this as having consequences for the future of the single currency itself, but we’ve had many of those moments before, so the euro could well be a little more circumspect about the more bearish scenarios. Before then, we have the UK Autumn Statement tomorrow, which these days is more like a mini-budget. Most significantly, the latest forecasts for growth and borrowing will be released by the independent OBR, which will reflect the anticipated slower growth path as a result of the Brexit vote earlier this year. This could induce some sterling volatility. Before then, we have UK borrowing data today, with US existing home sales data later at 15:00 GMT.


Source link  
The precious metal has broken out

The precious metal has broken out from its descending wedge around 1331.00 and moved higher to create a lower high at 1361.80.The price then...

All Focus on US inflation data

The USD has weakened further overnight as the market awaits important US Data at 13:30 GMT. USDJPY broke down under 107.000, while...

Central Bank speakers start a quiet week

UK MPC Member Vlieghe spoke at the Resolution Foundation in London. Some of the comments made were: If there is less credit headwind to the UK economy...


Equities Face a Nervous Session

The global equity markets are bracing themselves for a stormy closing session this week, as data from Thomson Reuters Lipper unit shows US fund...

Super Thursday for the Bank of England

The Bank of England is expected to largely proceed as normal today on ‘Super Thursday’ when the central bank releases its policy decision and statement...

US Nonfarm Payrolls Today

Today is Non-farm Payrolls day in the US. This data release is generally one of the most important of the month, being a leading indicator of consumer...


Australian Dollar drops after soft data

The Australian dollar eased on Thursday following weaker-than-expected economic data. The Australian Dollar took an initial knock on Wednesday on...

Trump Supports a Strong Dollar

Markets have had a volatile session this week thanks to various US officials and yesterday was no exception, with President Trump speaking in Davos...

A Weaker Dollar is Good for the US

Yesterday, Senior US Officials took the lead from their President and made clear the US position on Trade. Commerce Secretary Wilbur Ross...

  


Share: