Sceptical equities

September 20, 2016

There was a definite yield differentiator on yesterday’s moves against the US dollar, which was generally in retreat. Those gaining the most were those with the highest interest rates, such as the South African Rand, the Aussie and also the kiwi. The Swiss franc and euro were less eager to join the party. This underlines the view that the market was getting more confident on the likelihood of the Fed keeping interest rates on hold at this week’s meeting. The other point of note was the modest gains seen on the yen. Policy options are far less clear cut for them, with the BoJ also due to publish a review of the impact of recent policy measures at this meeting.

For today, there does not appear to be anything major on the horizon that will upset the overall tone. The Fed’s two-day meeting starts, with results announced tomorrow 18:00 GMT tomorrow. It seems that everyone has talked to within an inch of its death the possible outcome of this meeting, just as was the case September of last year. It’s not just about FX though. We had seen the S&P 500’s correlation with Fed expectation increase June to August as the probability of a September hike receded, but that relationship has broken down in the past 3 weeks, equities more worried about the fact that the economy is showing signs of lagging, rather than benefitting from the low rate environment. Before then, we have the BoJ meeting overnight, with results announced before the start of the European session tomorrow. There is a whole plethora of expectations around what they could or could not do, so the potential for volatility remains fairly strong.

Publication source
FxPro information  FxPro reviews

December 5, 2016
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...
December 2, 2016
Oil may remain above $50
The Oil price continued to push higher today reaching its highest level in over a year with some predicting that the OPEC deal reached yesterday was a game changer and further gains are expected...
November 29, 2016
Euro may hit parity with US dollar
The Euro was under further pressure today against the US dollar on the back of political instability in Italy and, bringing it closer to parity with its American counterpart...

HYCM Rating
FIBO Group Rating
Trade360 Rating
 FXTM Rating
FxPro Rating
Orbex Rating

OptionRally Rating
Porter Finance Rating
TropicalTrade Rating
Binary Brokerz Rating
Grand Option Rating
365BinaryOption Rating