The importance of yields

23 April, 2015

The standout in yesterday’s trading was sterling, where the minutes to the latest MPC meeting pushed home the point that the next move in rates is going to be up, even if they gave little away in terms of timing. We pointed out the near-term potential for sterling which has come to fruition, but the currency is coming under some pressure this morning and is seen back below the 1.50 level on cable. We have 2 weeks to go before the general election and sterling is likely to become increasingly trapped by the prospect of a hung parliament, but a lot of that is already in the price. The other points of note yesterday was the rise in yields seen in the Eurozone, with the Germany 10Y, which had dipped below the 0.10% level, moving back to 0.15%. The shorter-dated yields (more influential on the currency) also moved higher, but the German short-dated yields remain deeply in negative territory, with this continuing to put downward underlying pressure on the single currency.

The kiwi has been the main point of interest in overnight trade. Comments from the RBNZ were suggesting that rates are set to remain stimulatory “for a prolonged period”. This continues the shift we’ve seen earlier this year to a more neutral stance from the central bank, with these latest comments putting the kiwi below the 0.76 level. Finally, the latest data in China has come out weaker than expected, the HSBC manuf series seen at 49.2. We’re also seeing weaker PMI data for the latest (provisional) French PMI data.


Source link  
The dollar grows on wages data

The US dollar is on the rise after strong U.S. labour market data published on Friday. The EURUSD is traded near 1.1540; it returned to this month lows....

Increased flight from EM currencies

The crises process is intensifying in emerging economies, which also affects their markets and supports the demand for the dollar. S&P 500 lost 0.2% on...

Markets under pressure

Asian markets have been declining for a third consecutive trading session on the fears of the Chinese-U.S. trade tensions escalating. The odds are that...


Markets are optimistic but remain weary

The markets remain on cautious positive mood. MSCI for Asia-Pacific region adds 0.4%, continuing gently recover for the second day in a row. American...

Dollar updates its 14-month highs

The strengthening of financial markets on Tuesday has not been unsustainable and prolonged. Recent shots in the U.S. trade conflicts are: a Chinas claim...

Dollar has a potential of 5% rally

The dollar rewrote 13-months highs on Friday to a basket of six major currencies, adding 0.25% after gaining 0.5% on Thursday. The further growth of...


BoJ cautions keep forex calm

In the currency market, the dollar was under some pressure following the data that indicated a weakening of the inflation in the Eurozone. The slowdown in prices...

Stocks are growing, Bonds under pressure

The situation in the world markets looks controversial. Shares are growing after strong reporting of companies. The shares of Alphabet (#Google) jumped by 3.6% after...

The potential of USD growth is limited

Powell's speech with the semiannual report in the U.S. Congress contained an optimistic view on the economic outlook. Such a tone has reduced fears that...


In the past 24 hours Bitcoin has lost -10.17% and reached $4399.25381665. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.1164% and is now at $1.13. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -35.82% and is now at $132.924430719. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Forex Market Analysis



Forex Currencies Forecasts



Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM87%
3HYCMHYCM86%
4Alfa-ForexAlfa-Forex85%
5FxProFxPro84%
6FIBO GroupFIBO Group83%
7OctaFXOctaFX82%
8HotForexHotForex80%
9FXCMFXCM78%
10AvaTradeAvaTrade76%
  


Share: