As widely predicted, the UK’s BoE division, the monetary policy committee, revealed they’d voted to keep the UK’s interest rate at a record low of 0.25%. This was a rate implemented as an emergency policy, immediately after the UK’s voters elected to leave the European Union in June 2016. As has become customary, what’s termed […]
With the USA close to what economists term “full employment” (the unemployment level is currently at 4.4%), “NFP day” has failed to create much activity in the forex markets, over recent months. However, with the U.S. dollar at recent lows versus its major peers and the current “risk on” mood of Wall Street, a significant
As predicted it wasn’t so much “if”, but rather “when” the DJIA would finally breach the 22,000 handle. And on mainstream media TV channels on Wednesday, there were many images of middle aged men wearing jackets, emblazoned with the name of investment banks, or trading firms on their backs, rejoicing from their (supposed) trading floors,
Just as it was highly likely that the DJIA would be drawn to the 22,000 handle, it was somewhat inevitable that price would reject the level, given the cluster of orders located close to this critical psyche level. A record intraday high of 21,990 was reached, with the index of the USA largest firms closing
Despite trading in USA equity markets being approx 10% below the thirty day moving average, both the DJIA and SPX closed up on Monday, the DJIA pushed through R2 to close at a new record high and is now ominously closing in on the next major target, the 22,000 handle, which would represent an approx.
Tuesday’s high impact news events begin with the RBA (Reserve Bank of Australia) announcing their interest rate decision. Currently at 1.5% there is little expectation for a rise or cut, despite August representing the annual anniversary of the record low 1.5% rate. In the last monetary policy statement (accompanying the rate hold in July), the
Sunday evening we’ll learn the building permits figure from New Zealand and the latest (provisional) industrial production figures from Japan. YoY production in Japan is forecast to fall to 4.8% in June, from 6.5% in May. The shock -3.6% monthly contraction recorded in May is predicted to reverse back to a healthy growth figure of
The week ends with the infamous NFP jobs print. Which no longer provides the fireworks of previous years, given the relative stability of USA employment; many Fed officials consider unemployment at circa 5% to be relative “full employment”. However, the data release can still move markets, if a shock print is published. The ADP data
Australian import prices fell by -0.1% and export prices fell by -5.7% in Q2, initially the Aussie reacted positively to the data. However, the gains were short lived and several Aussie pairs eventually turned negative throughout Thursday’s trading sessions, with AUD/USD closing the day out resting on the daily pivot point, at 0.7967. Chinese data
On Friday afternoon, attention will focus on two GDP figures from North America; both Canada’s and the USA’s latest GDP growth figures are published at GMT 12:30pm. The forecasts, from the various economists polled by Reuters and Bloomberg, predicts GDP growth in both countries. Canada’s growth is predicted to come in 0.2% for May, maintaining
USA and Canadian GDP figures may reveal where the wider North American economy is headed Read More »
