Searching for a new narrative

11 January, 2017

Popcorn at the read today as President elect Trump has a scheduled news conference later in the day (around 16:00 GMT). Markets have become used to listening to him in 140 characters or less over the recent weeks, so a more elongated narrative should be welcome. It’s pretty clear that the dollar strength has stalled, with the uptrend seen since the US election results waning on a technical basis. The week so far has seen some reversal of the recent weakness, but this has been within very narrow ranges. This held true for cable yesterday, which posted a low at 1.2108 before recovering through the day. Note that BoE governor Carney speaks this afternoon in front of the parliamentary Treasury select committee, so sterling will be keeping a close eye on that. As discussed yesterday, sterling remains the only major currency weaker against the dollar in the short year to date.

Elsewhere whilst the Dow continues to struggle with the 20k area, the FTSE has continued its push north, not having seen a down day since before Christmas. Gold has also been doing a decent job of brushing off the weakness seen in the closing weeks of last year, having now recovered 4% from the lows. The move has outpaced the reversal of the dollar turn-around, underlining the fact that’s it’s more than just about the currency for gold. Before Trump o’clock, we have UK trade and production data at 09:30 GMT. Otherwise, we’re likely to see a fairly tentative market through the day, both in FX and equities.


Source link  
Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

US Equities at Record Levels

US equities closed at record levels on Wednesday, as improved risk-on sentiment returned to the markets and news that the US economy...


USD Stabilizes

Hurricane Irma has, reportedly, inflicted less damage on the US mainland than was originally predicted, thereby reducing the economic impact of the devastation it was expected to...

Markets on Edge

With the markets risk appetite dampened after North Korea’s most powerful nuclear test to date, USD and Global equities fell whilst Gold, Yen and Sovereign Bonds all rose....

Risk Appetite Returns

North Korea official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam...


US-Korean Tensions Rattle Markets

Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned...

Global Manufacturing Grows

Recent data releases have shown that global manufacturing saw an increase in July, further confirming global economic momentum has carried into H2...

All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

  


Share: