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Financial markets have traded with a more positive tone overnight after disappointing US economic data was likely seen as confirming that the Fed’s super-loose monetary policy will remain in place for now. This had the slightly counter-intuitive effect of providing USD with some strength. In Europe today, we are likely…
After gaining 3.1 percent in the past 3 months against a basket of other currencies GBP has now entered its third consecutive day of losses falling below 1.1700 versus Euro and below 1.6100 versus US Dollar. Without any particularly negative data impacting GBP it appears that it is simply falling…
As the storm passes, travel disruption across the south of the United Kingdom means that trading in London is likely to be very slow and coupled with todays fairly quiet economic calendar, we do not expect much movement from GBP today. The big event of the week is the US…
Strong new orders drove the fastest expansion in China’s manufacturing sector in seven months in October, a preliminary survey showed, more evidence that the economy is stabilizing although a strong rebound remains elusive. Many will ask why strong data from China makes any difference to them… Well China is the…
Early morning trading saw GBP retract against most major currencies as the market hedged its positions pre BoE minutes. The expectations were for a unanimous vote to keep policy unchanged with the Bank Rate at 0.5% and QE at £375bn. The minutes came in completely as expected. The reaction has…
Todays focus will be very much on the delayed US Employment figures, in particular the Nonfarm Payrolls at 1.30pm UK time. Remember the US unemployment figure is a key pointer as to when the Fed may consider the fabled tapering – a better than expected payrolls figure will see USD…
With so much focus on GBP/USD of late it feels as though we have effectively ignored the movements of GBP/EUR. However the truth is that very little has happened – GBP/EUR has been firmly range bound between 1.1700 and 1.1900. Traders are now looking at this weeks data releases for…
Yesterday’s UK retail figures came in better than expected which gave GBP an unexpected boost. After an initial period of strength the US dollar lost 200 pips versus GBP yesterday. The market has begun to price in a reduced chance of tapering from the Fed amid dampened growth caused by…
This morning we have the ZEW Survey for Germany – showing how optimistic (or pessimistic) German investors are about the economy. As this is a survey among investors and analysts, it does not have the same significance as the German IFO – which is conducted among businesses – and which…
With no significant data releases scheduled for today the market focus will move the the major events of the week whilst it also continues to analyse the events of last week. The first significant data of the week will be tomorrow mornings German ZEW survey. Released at 10am Tuesday 19th…