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Fed on hold as expected – JPY pairs collapse after no action from the BoJ

Markets had been range trading ahead of the Federal Open Market Committee’s decision as there were doubts on how the recent terrible US unemployment report would affect the outlook in the US economy. With the decision to keep rates on hold and place quite a dovish statement with a few downgrades on growth and the […]

Global money map. World map made of money coins

Asia in Negative Despite Strong AU GDP. Manufacturing in Focus today

Stock markets in the US finished on a mixed note with the S&P and the DOW in minus, whilst the Nasdaq managed to take home a 0.3% gain. The US Dollar continued overall on the bid and has shown a solid performance in May on back of re-ignited rate speculation, taking the US Dollar Index […]

Roadsign of higher interest rates ahead against blue sky

Yellen Hints US Rate Hike Within the Near Term

Market volatility was in general nothing to cheer for last week as most markets were in “wait-and-see” mode ahead of Friday’s speech by Fed Chair Yellen. According to the Fed Chair, it would be “appropriate” to increase the interest rate should we see continuity in the pickup of US macroeconomic indicators. Markets have increased the […]

Roadsign of higher interest rates ahead against blue sky

Hawkish Fed Speakers send Risk on the offer – H-S in S&P

Following a good finish for the week in global markets, Monday’s price action was negative on back of hawkish comments from Fed speakers (Bullard in particular mentioning that if interest rates were kept too low, for too long time, it would hurt the economy) about the US monetary policy and potential rate hike in June. […]

Dollar vs Euro

Euro zone PMI and FED speakers in focus

Markets finished on a positive note on Friday on back of strong US Existing Home Sales, giving a boost to US equities with Nasdaq taking home 1.2% and the S&P500 0.6% with healthcare and financials leading the pack. Overnight, Asian indices opened in positive, but despite overall supportive Japanese figures, the markets have been focusing […]

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Dovish Fed “worries about the world”

FED Bloomberg: Fed Chair Janet Yellen’s speech at the Economic Club of New York on Tuesday reinforced that the central bank places a great weight on these market and international variables—and Deutsche Bank AG Chief International Economist Torsten Slok has a chart that shows just how worried the Fed is about the rest of the […]

Building icon with inscription "Fed". Financial data on computer screen. Multiple exposure

Another round of USD weakness post dovish Yellen – S&P500 in 2016 highs

Markets were fairly range bound in the EU session yesterday, but this changed drastically following Yellen’s comments before the Economic Club of New York, which sent the Dollar Index down with 1% and the US Dollar tumbled against all peers. US and Asian stock markets, less Japan, enjoyed Yellen’s comments as their cost of capital remains […]

Wall Street road sign, Lower Manhattan, New York City

S&P500 Erases 2016 Losses on Back of Fed Actions

The developments in the US markets again took centre stage in yesterday’s trading session. The US dollar continued on the offer on back of the dovish FOMC on Wednesday, sending the USD-Index to lowest levels since October 2015. EUR/USD printed March highs at 1.1342, but did not manage to break clear above the daily Wedge. Emerging market […]

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Dovish FOMC Triggers USD-weakness Across the Board

The Federal Reserve decided to keep the leading interest rates unchanged as expected, but communicated that they only see two additional rate hikes this year, whereas some market players had been speculating that a third would be justified. We were not of that belief and were bang on with our thoughts from yesterday that additional […]

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Strong US Inflation Figures Puts the Fed in a dilema

US January inflation figures came out stronger than expected across the board. In light of recent data on production from the US economy, this puts the Fed in jeopardy with regards to the monetary policy going forward as inflation puts an upward pressure on the leading interest rates, which could put a damper on the […]