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  
Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...

Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...


Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...

Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...


Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...

May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...

Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

  


Share it on:   or