Recent Fed base rate rise hits USA trade gap as dollar rises. It’s less than a month since the USA Fed raised the base interest rate by 0.25% and so far the USA equity markets and the dollar have responded positively. Equities have consistently printed record highs, whilst the dollar has gained in strength, rewarding […]
USA equity markets in retreat mode, UK’s FTSE 100 closes at record high, the dollar rises, whilst sterling and the euro fall versus their major peers. During the New York trading session on Wednesday the main USA equity markets sold off sharply. The reasons put forward were many and various; trading is still circa thirty
Two key confidence measures were released in the USA on Tuesday. Firstly, the Case-Shiller index revealed that house prices in the USA rose by 5.1% on an annual basis. All 20 cities in the index showed a YoY gain, the highest gain reported was a 10.7 percent gain in Seattle, whilst New York had the
The USA consumer confidence survey dominates the economic calendar on Tuesday Market trading volume is expected to be relatively thin during the final few trading days of 2016, the UK’s holiday season is extended with a bank holiday on Tuesday, therefore the traditional London FX session may mirror previous holiday trading sessions; with volatility and
U.S.A. economy finishes the year with 3.5% annual GDP, as EUR/USD rebounds from its fourteen year low. The final USA GDP figure of the year was published on Thursday, revealing a 3.5% annualised growth rate during the three months which ended in September, compared with the analysts’ polled estimate of 3.2%. Household purchases; with consumer
The dollar recedes from its fourteen year high whilst USA home sales reach a nine year high Despite strong bullish economic news; with sales of previously owned U.S.A. homes defying analysts’ expectations by increasing in November to reach the highest level seen since 2007, the major U.S. equity indices failed to reach new record highs
The Dollar rises to a fourteen year high as the DJIA approaches 20,000 Despite trading volume in the SPX and DJIA being circa twenty percent lower than the thirty day average, USA equities rallied during Tuesday’s trading session as a consequence of investors buying into financial companies, in particular banking stock was highly sought. The
Italian bank problems resurface whilst Ukraine’s largest bank fails Monday was a relatively quite day in terms of scheduled high impact news event and data, which is to be expected as trading winds down towards the year’s end. However, there are several issues bubbling up under the surface in Europe that are causing grave concerns;
Will a Santa rally gain momentum and cause the DJIA breach 20,000? As mentioned in previous communications, the main USA equities indices have experienced the late end of year gains (the phenomenon known as the Santa Claus rally) during 26 of the past 31 years. However, given the late FOMC interest rate rise announced last
The Dollar reaches its highest level versus the euro since 2003 “The market can remain irrational longer than you can remain solvent”. Supposedly the English economist John Maynard Keynes said this after suffering losses on a series of highly leveraged trades. He was then “humbled” by the market, a euphemism for losing badly. And yes,
