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Markets were well supported yesterday. In the US, July international trade was somewhat weaker than expected, but the report cut only 0.1% off market expectations on Q3 GDP, which now stands at 2.6% . The report on trade was offset by a better-than-expected report on August auto sales and a…
The US debt ceiling has been raised until February 7th, with the government fully funded until January. The can has been truly ‘kicked down the road’. The market will now focus on the damage done and the potential for the Fed to taper in the coming months (before the US…
The Pound will be under significant pressure today starting with the UK unemployment data that has already been released. Surveys expected the unemployment rate to remain unchanged at 7.7% in the three months ended in August while the Claimant Count would drop by 25.0K. The actual data showed a decrease…
After an extremely quiet day on the markets yesterday – we are are back with a bang today: 9:30am we had UK Inflation data – typically one of the major factors for deciding interest rate policy, the influence of this data has been reduced by the introduction of forward guidance…
A very quiet day on the markets today with the US and Canada closed in celebration of Columbus Day and Japan closed for ‘National Sports Day’. As a side note the US has also chosen October 14th as National Indigenous Peoples Day. Although officially a public holiday it is expected…
Yesterdays BoE meeting passed without incident and initial research showed the UK is on track to meet a 0.8% growth estimate in Q3. The fact that GBP has moved toward 1.1800 versus EUR demonstrates some relief from the market that the events were not negative for the Pound, albeit not…
GBP weakened yesterday after disappointing figures from the UK’s manufacturing and industrial sectors and the trade deficit being higher than forecasted. Despite losing ground versus most currencies, Sterlings value is still above the average for the last three months. Today we have the Bank of England’s monetary policy meeting. The…
There are 2 big events today starting at 3pm today with UK GDP prediction for the last quarter followed by the Federal reserve’s FOMC minutes. The day actually starts with a raft of minor UK data so we expect GBP to be fairly volatile today. However the biggest news on…
It’s very much “as you were” in the FX markets as we still await any developments from Washington. Whilst the shutdown remains and the deadline to the debt ceiling creeps ever closer, the markets aren’t showing their hand just yet. In Europe, we have seen some poor August export figures…
The continued gridlock and lack of any visible progress for any resolution in the US is still the main story in the markets this week. Although clearly a political issue, this also severely affects what is happening on the FX markets. Also in the US, we are starting to see…