US slowdown destabilises markets

30 April, 2015

Yesterday’s US GDP data confirmed the divergence between the UK and US, which has now been building for some months and we saw GBPUSD crescendo higher. It is now not far from recording a new 2015 high, but we are still some way off the 200 day moving average, which sits around the 1.5700 level, so the jury is still out as to whether this sharp move to the upside in the past few weeks is a reversal of the downward trend that commenced last July.

Naturally there was also some risk taken off the table with stock indices tumbling and this comes as a little warning sign for investors who would normally expect markets to rally after a poor piece if economic data from the US, as it would be seen as a sign that monetary policy would remain looser for longer. Not so this time as the reality is starting to set in that the global economy is not as strong as it was six months or even a year ago and it’s little wonder the Federal Reserve has been becoming more cautious in their outlook for the US economy, giving more gloomy prospects at last night’s FOMC.


Source link  
Dollar Tumbles on Trump Uncertainty

USD plunged on Tuesday breaking the significant support line at 100.00 and further testing the next major support at 99.50...

Can Gold Hold Above Near Term Major Support?

Spot gold hit the lowest level of 1194.91 since 31st Jan on 10th, and rebounded as the zone between 1195 – 1197 is the near term major support zone...

Will Yellen Give a More Hawkish Outlook ?

The Fed will announce its interest rate decision and monetary policies, at 18:00 GMT today. Later, the FOMC press conference will be held at 18:30 GMT...


Can Supreme Court Ruling Help GBP?

Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release...

Cautious EURUSD Ahead of ECB

USD, and the US government bond yields, surged last night following Fed president Janet Yellen’s speech to the Commonwealth Club in San Francisco...

The Fed waiting game

Ranges were on the tight side during Monday as markets hold back ahead of the two-day Fed meeting in the US which starts today. This is the last major known risk event of the year, so once over, we’re likely to see volatility and volumes diminish into year end...


Tapering and extending

The main challenge for markets today will be steering through the messages that emerge from the ECB meeting and press conference. Whereas the Fed meeting next week is seen as a near certainty in terms of its outcome, this is not the same for the ECB...

Crisis Lite

The Italian referendum on constitutional reform saw voters reject the proposals in front of them, in a fairly decisive manner. As such, Italian PM Renzi will tender his resignation today and this became part of the issue...

Can OPEC Meeting Help WTI Break Major Resistance

OPEC will hold the next meeting in Vienna on 30th Nov, discussing about further details regarding output freeze. Due to the market expectations on the likely agreement after the meeting, oil price has rebounded since 14th Nov, after testing the long term significant support line at 43.00...

  


Share: