oil

European Session – Weak dollar ahead of FOMC, euro hits 1 year high versus Swiss Franc

Posted on January 27, 2016 at 3:34 pm GMT

The market’s attention was on the Federal Reserve today and the release of the Federal Open Market Committee (FOMC) statement after a policy meeting that began on Tuesday. In anticipation of the policy announcement, there was little risk off in the currency markets as there are expectations of a somewhat more dovish tone from the Fed today as it takes into account the turbulence in global markets since the start of the year. Such economic conditions would not give the [..]

FX Daily Outlook| 27-01-16

Posted on January 27, 2016 at 9:40 am GMT

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Asian Session – Aussie up on strong inflation data; dollar steady ahead of FOMC

Posted on January 27, 2016 at 9:21 am GMT

Asian stocks were mixed on Wednesday with Tokyo gaining 2.7% following a strong close on Wall Street yesterday. But shares in China failed to rebound from Tuesday’s big slump to drop another 0.5% in today’s Asian session on fears of margin calls triggering further losses. The yen was firmer in Asian trading as risk sentiment weakened slightly on Wednesday. The dollar hit a low of 118.03 yen before rebounding slightly to 118.19 in late session. The euro also came off [..]

European Session – Loonie bounces along with oil prices, sterling rallies

Posted on January 26, 2016 at 3:48 pm GMT

Risk sentiment turned in the European session, leading to a recovery in equity markets and a bounce in risk assets. Oil prices bounced back above the key $30 a barrel level, mainly due to hopes that a deal may be edging closer for OPEC and non-OPEC producers to cut the output of oil. This optimism came about after Iraqi Oil Minister Adel Abdel Mahdi said he saw “some flexibility” for a deal, suggesting that Saudi Arabia and Russia could be [..]

Will Central Banks come to the rescue again?

Posted on January 26, 2016 at 11:53 am GMT

As risk assets have fared very badly at the beginning of 2016, there are hopes that some of the world’s top central banks will offer some more stimulus, which should help soothe investors’ nerves. Although a correction in stocks should normally be welcome given their near 7-year continuous assent (since 2009) without a bear market (at least in the US), there is quite a lot of nervousness among policymakers about the fragility of the global economy. Specifically, policymakers might become [..]

Attention turns to Fed and BoJ meetings amid market volatility and oil rout

Posted on January 26, 2016 at 11:43 am GMT

Two major central banks will hold their policy meeting this week, with the US Federal Reserve and Bank of Japan meeting for the first time in 2016. While the Fed is almost certain to keep rates steady on Wednesday, there’s been increased speculation in recent days that the BoJ might surprise with policy easing on Friday. The renewed slide in oil prices since the start of the year has brought back the threat of deflation. Crude oil prices were back [..]

FX Daily Outlook| 26-01-16

Posted on January 26, 2016 at 9:28 am GMT

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Asian Session – Global growth fears trigger share sell-off; Oil drops below $30

Posted on January 26, 2016 at 8:57 am GMT

Concerns about the health of the global economy led to another sell-off in equities today with Asian stock markets following Wall Street’s lead on Monday to drop sharply. The S&P 500 closed 1.6% lower yesterday, the Nikkei 225 index was down 2.4% but shares in China were the most hit with the Shanghai Composite index plunging by 6.4%. The People’s Bank of China tried to allay fears of a liquidity crunch by pumping 440 billion yuan into the banking system. [..]

European Session – Yen and gold rise on risk aversion, oil retreats from $32

Posted on January 25, 2016 at 3:32 pm GMT

There was mild risk aversion in the currency markets today due to the renewed weakness in oil prices. Overall the drop in commodities affected the oil-linked currencies, like the Canadian dollar which came under pressure after oil slipped from a two-week high of $32. Flows to safe havens helped lift gold, which was a strong performer today, rising to $1107. The euro was supported by the risk averse environment as the currency has tended to be used as a safe [..]