One way dollar traffic

7 April, 2016

The dollar was sagging through most of the session on Wednesday, with the Fed minutes not really doing anything to dent sentiment one way or the other. What they did reveal was a fairly deep-seated range of views on the committee, in part split by those looking at the domestic data and those more cognisant of the wider global environment. What was interesting was that this was not a ‘risk-on’ move with both the yen and Aussie climbing against the dollar in almost equal measure. The other commodity currencies were also taking part in the move, USDCAD reversing some of the gains of the previous four sessions. Oil was also firmer into the close, thanks to the weakening inventories data published later in the day. Overnight, the yen has continued to strengthen, making this the fifth straight day of down-moves on USDJPY. This came despite the more stable tone to Japanese stocks over the past two days.

Elsewhere, we are seeing both sterling and also the single currency weaker in early European trade. Some are pointing to the Dutch rejection of the EU/Ukraine trade deal in yesterday’s referendum, which has played into the hands of those campaigning for the UK to leave the EU ahead of June’s UK referendum. We’ve also had comments from ECB’s Constancio who said that the ECB would “do whatever it takes” to achieve price stability. I’ve heard those words before somewhere… and they are taking the shine from the single currency in early trading, which peaked at 1.1454 earlier. For today, the ECB will publish the account (not minutes) of their policy meeting, where various further measures were introduced. There is perhaps greater risk than normal to this, should it give a different spin on some of the measures announced last month (11:30 GMT). Thereafter, there is the usual weekly claims data in the US.


Source link  
Eurozone economy is robust but...

Speaking at the Frankfurt European Banking Congress, ECB President Mario Draghi, commented that although the eurozone economy was robust...

Trump: Jobs, jobs, jobs!

Data released on Friday showed US job growth accelerated in October after hurricane-related disruptions in the prior month, but a sharp retreat in average earnings and an increase...

UK Interest Rates in Focus

The Bank of England is widely expected to raise UK interest rates for the first time in 10 years today. An expected 0.25% rise, to 0.5%, will push...


Strong US Q3 GDP Boosts USD

The US Commerce Department released Q3 GDP data on Friday, showing the US economy expanded at an annual pace of 3%. With the back-to-back...

So, Who Will Be the Next Fed Chair?

The markets are turning their attention to who will become the next Chairperson of the Federal Reserve. President Trump recently commented that...

Bank of England Faces Conundrum

On Wednesday, data released by the UK Office for National Statistics (ONS) showed average weekly earnings (excluding bonuses) rose...


UK Inflation at 5-Year High

The likelihood of a rise in UK interest rates, for the first time in a decade, gained momentum on Tuesday as UK CPI edged up from 2.9% to 3.0%...

US Inflation Disappoints

US Consumer Price Index data was released and failed to impress the markets. With US gasoline prices spiking, following the disruption caused by the recent Hurricanes...

Can CPI Follow PPI Lead?

In early Friday trading, the markets are relatively static as they wait, in anticipation, for today’s US inflation data that will potentially give confirmation...

  


Share: