FX Daily Outlook| 07-06-16
Posted on June 7, 2016 at 9:21 am GMT[..]
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Asian Session – Dollar stuck near lows as Yellen gives no timing of rate hike
Posted on June 7, 2016 at 8:00 am GMTFed Chair Janet Yellen gave little away yesterday as she spoke about the US economy at the World Affairs Council in Philadelphia. After much speculation as to whether Yellen would signal a rate rise in the coming months, investors were left disappointed from the lack of policy direction. Analysts interpreted this as there being little chance now of a rate rise in June and that a July hike would be entirely dependent on the incoming data until then as Yellen [..]
European Session – Commodities rally as Fed rate hike hopes fade; Dollar steady ahead of Yellen
Posted on June 6, 2016 at 2:45 pm GMTCommodities rallied in European trading on Monday as a weaker dollar boosted commodity prices across the board just as market expectations of a Fed rate hike in June fell drastically. The dollar’s slide on Friday following a much weaker-than-expected jobs data has increased sentiment for commodities such as copper, zinc, nickel and iron ore, as well as for oil. The Thomson Reuters/Jefferies CRB commodities index was up 1.5% at 192.25 in afternoon European trading, boosted in part by stronger crude [..]
Dollar plummets after big miss on US non-farm payrolls
Posted on June 3, 2016 at 2:56 pm GMTJobs growth in the United States slowed to the lowest since 2010 in May even as the unemployment rate fell to an 8½-year low. Non-farm payrolls missed forecasts by a large margin as they rose by just 38k instead of the expected 164k. Adding to the poor figure was a downward revision to April’s reading from 160k to 123k. The disappointing increase in the number of new jobs was in sharp contrast to the surprise dip in the jobless rate, [..]
Week Ahead – Light week for US data but Yellen speech eyed; RBA and RBNZ meet
Posted on June 3, 2016 at 1:24 pm GMTAfter a packed week for US data, the US calendar is looking relatively light for the next seven days. However, the spotlight will stay on the US as Fed Chair Janet Yellen delivers a speech on June 6, which may offer the final clue on whether the Fed will raise rates in the middle of the month. Also to watch are revised GDP estimates for Japan and the Eurozone. Plus, the Reserve Bank of Australia and the Reserve Bank of [..]
US consumer spending rises the most since 2009 but dollar little changed
Posted on May 31, 2016 at 2:07 pm GMTPersonal spending in the United States rose at the fastest pace in nearly seven years in April as consumer spending bounced back after a weak first quarter. Personal consumption expenditure increased by 1% month-on-month in April, beating estimates of 0.7%. This was the highest since August 2009 and compares with a downwardly revised rate of 0% in March. Personal income continued to grow at a steady rate in April, maintaining the 0.4% month-on-month rate of the prior month. The figure [..]
Yellen reinforces market expectations of summer rate hike
Posted on May 30, 2016 at 11:56 am GMTExpectations that the US Federal Reserve could be readying to raise interest rates as early as June gathered pace over the weekend following hawkish remarks from its head. Fed Chair Janet Yellen on Friday added to the growing number of hawkish voices coming out of the Fed in recent weeks, reinforcing market expectations that US rates are likely to go up in the summer. Speaking at the Radcliffe Institute for Advanced Study at Harvard University, Yellen said during a panel [..]
Asian Session – Dollar surges past 111 yen after Yellen says rate hike coming soon
Posted on May 30, 2016 at 8:13 am GMTThe US dollar surged against the yen in Asian trading on Monday as Fed Chair Janet Yellen reinforced expectations that the Fed could be on track to raise rates by the summer. Speaking at Harvard University on Friday, Yellen said that a rate rise would be appropriate “in the coming months”. Her message was repeated by St. Louis Fed President James Bullard on Monday. Bullard said that markets globally were “well prepared” for a June or July rate hike adding [..]
US growth revised higher in first quarter but still weak
Posted on May 27, 2016 at 3:11 pm GMTEconomic growth in the United States was revised higher in the first quarter but was still the lowest in a year. GDP growth was revised up from the advance estimate of 0.5% on an annualized basis to 0.8% in the second estimate. The figure falls just short of forecasts of 0.9% and compares with a rate of 1.4% in the previous quarter. On a year-on-year basis, growth was unchanged at 2.0% during the first three months of the year. The [..]
Week Ahead – Key week for dollar with payrolls in focus; ECB meeting also eyed
Posted on May 27, 2016 at 1:19 pm GMTIt will be a busy week for US data and the dollar in the next seven days as a number of key indicators are expected including the all-important NFP report at the end of the week. The euro will also come into focus as the European Central Bank holds its scheduled policy meeting, while Chinese PMI and Australian and Canadian GDP numbers will also be important. Japanese household spending likely to fall back in April Japanese data will start the [..]
