More cautious for now

20 December, 2016

Overnight events have given the dollar a modest bid, with three events having occurred around the world seen as terrorist related. This follows on from the softer tone seen at the start of the week and represents a new dynamic for the market to contend with as volumes taper off into the end of the year. We also had some bullish comments from Yellen last night around the jobs market which also supported the dollar at the margins. For USDJPY, this has allowed a reversal back towards the 118.00 level, but we remain short of the recent highs at 118.66 and for now, that will be the level to watch in terms of whether this is going to be a more sustained dollar rally. There were no changes to policy at their last meeting of the year, with a marginal upgrade to their outlook for the economy.

For today, the data calendar is on the light side, so we’re likely to see markets winding down into year end, but with a hint of risk aversion. Note that stocks were largely range bound yesterday after the firmer tone seen in the US, whilst the Eurostoxx flat-lined through the trading session on Monday. We’re looking to a marginally weaker start today.


Source link  
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...

U.S. Government Shuts Down

The U.S. government shutdown over the weekend as the Senate failed to pass a bill to keep the funds flowing late on Friday. The Democrats are making...

  


Share: