Trump’s Republican Party are facing tough opposition from the Democrats, to push through their tax cut agenda, who have described the fiscal policy as a “total mess”. It must be noted that the DJIA and SPX have risen circa 22% since Trump was inaugurated and 30% YoY, not due to increased earnings or spectacular company […]
Having fallen consistently versus several of its peers last week, as the BoE’s dovish monetary policy statement failed to satisfy investors, the U.K. pound recovered much of its lost ground on Monday; GPB/USD rose by circa 0.7%, whilst EUR/GBP fell by a similar amount. The gains, versus the majority of sterling’s peers, came despite Brexit
Last week ended with the U.K. pound left reeling from the battering it took on Thursday, after the BoE announced a base rate rise of 0.25%. It wasn’t that the highly anticipated interest rise was already priced in, it was the accompanying dovish, forward guidance narrative, issued by the deputy and the governor of the
Markit Economics will publish a multitude of PMIs for Europe during the coming week, these leading indicators provide a fascinating insight into where purchase managers believe their individual businesses and sectors may be headed, as such the indicators can prove to be predictive as they lead, they don’t lag. The Australian central bank the RBA,
The standard economic orthodoxy works like this; when a central bank raises its interest rate, the value of the domestic currency rises, even if the rise has been telegraphed through the media and forward guidance is issued by the central bank some weeks earlier, warning of the rate rise. Whilst the rate rise can often
The September NFP (non-farm payroll) number was forecasted to be poor, due to the various hurricanes and tropical storms, which battered certain parts of the USA in September. Analysts and investors were therefore not shocked, when the number missed the forecast; coming in at -33k for the month. The first negative reading recorded since the
As forecasted by certain economists, who were polled by news agencies, the FOMC decided to keep the U.S. key interest rate on hold, at 1.25%, with a view to revisit the issue in December. The market reaction was subdued; EUR/USD and GBP/USD maintained similar levels to that seen before the announcement, with USD/JPY and USD/CHF
On Thursday November 2nd the U.K.’s Bank of England, through its monetary policy committee, will announce its decision regarding the base interest rate. Currently at 0.25%, the general consensus, from the economists polled by the leading news agencies Bloomberg and Reuters, is for a rise to 0.5%. Despite the potential rise representing the first increase
The Eurozone delivered positive economic calendar news in the form of hard data on Wednesday, which caused the euro to rise versus many of its peers, with the notable exception of EUR/GBP, where the currency lost ground. GDP figures for the EZ beat both the Q3 and YoY forecasts, coming in at 0.6% and 2.5%
In their final meeting of 2017, which will conclude on Wednesday November 1st, the FOMC (the chairs of all the regional Feds), will end their meeting by announcing their decision regarding the key current interest rate for the USA. The announcement is generally followed by a press conference and/or a document, outlining the reasons why
Will the FOMC follow through on their commitment; to raise rates three times in 2017? Read More »
