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The New Zealand Dollar is getting a lot of attention early Wednesday, with the currency getting smoked on the back of a surprisingly dovish RBNZ decision, in which the central bank left rates on hold but transitioned from neutral guidance. Looking ahead, we get a Draghi appearance and US trade data. read report
Janet Yellen was out calming global markets after saying a US recession wasn’t likely. We’ve since seen attempts to rally stocks out from this latest minor sell-off low. Still, the reality of exhausted monetary policy tools in a world that could still be in need of such measures, is a reality that may keep stocks from wanting to run up much further. read report
The new week opens up much like it closed out. Risk assets are under pressure, with US equity futures extending declines and negatively impacting global markets. Global growth concerns have ramped up in the aftermath of a recent run of discouraging data and the money markets are now pricing in an 80% chance for a Fed rate cut this year. read report
Currency markets have been quite choppy in 2019, with no clear trend taking form. It seems, each time it looks as though we’re about to see a breakout, the market reverses sharply the other way. Looking at the Friday calendar, key standouts come from German and Eurozone manufacturing PMIs, Canada retail sales and CPI, and US existing home sales. read report
The market was expecting the Fed to deliver a dovish message on Wednesday, but was surprised nonetheless, after the central bank adjusted the dot plot to show no rate hikes in 2019. As far as today goes, attention shifts back over to the UK, with the Bank of England decision due, along with an EU Summit, where a short Article 50 extension is expected. read report
The market has been mostly quiet this week and a lot of that could have something to do with not wanting to be making any big decisions ahead of today’s event risk. The big focus on Wednesday will be the Fed decision late in the day, with not much else going on ahead of the event risk. read report
We’re coming out of a quiet Monday session and have continued with the consolidation into Tuesday. Even the Pound, which had been a mild underperformer in a sea of what was broad US Dollar weakness, has recovered back up to where it had been trading ahead of its Monday decline, brought on by uncertainty around next steps for Brexit. read report
Monday’s economic calendar is thin and most of the price action we’re seeing as the week gets going, is a catch up reaction to the way things settled on Friday, with the Buck selling off a bit, and global equities firmer. read report
If we look at the performance in the major currencies since the weekly open, with the exception of the Pound, all are confined to well within 1% of weekly opening levels. Still, the broad direction has been Dollar bearish, perhaps having something to do with the softer round of inflation data out of the US this week. read report
The early Thursday round of China data hasn’t had much influence on financial markets after the data came in mixed overall. Global equities have been resilient in 2019, though we have seen the emergence of selling pressure in recent days. Looking ahead, we get German CPI, US initial jobless claims and new home sales. read report
