vendredi 27 mars 2015
US dollar begins to strengthen once more as GBP/USD threatens a sell signal again
Posted on 04:07 by nice news
The interesting moves in the last 24 hours came in the forex markets yesterday as comments from FOMC member Dennis Lockhart resulted in the dollar strengthening into the afternoon and caused a sharp turnaround on some of the major pairs. Lockhart, who has traditionally kept a dovish stance, somewhat hawkishly suggested that the potential for a rate hike in the meetings of June, July and September was still on the table. How sustainable this move is remains to be seen but there has been a degree of uncertainty put on the markets once more. There is still a slight element of safe haven demand as Saudi Arabia continued to bomb positions in Yemen. This has the potential to cause supply issues for oil, which has subsequently pushed the price higher. This has also helped to drive gold and the yen higher too.
There has been a fairly muted steer from action later in the US session which has seen markets lower again without any real selling pressure taking hold. On Wall Street the S&P 500 closed 0.2% lower. Asian markets focused on the weaker than expected Japanese data which showed retail sales disappoint and the inflation figures (adjusted for the sales tax hike) coming in at flat which suggested that Japan was on the brink of moving back into deflation. This is a double edge sword as it suggests the economy is slowing but could also induce further stimulus from the Bank of Japan. The Nikkei was 1% lower overnight. European markets are looking on the bright side this morning, with slight gains being seen.
Forex markets are showing a dollar strength beginning to resume, with the euro and the commodity currencies (Aussie and Kiwi) are under more pressure as the oil price has just dipped back slightly today. There is little significant data being released from Europe so traders will be looking towards the final reading of US Q4 2014 GDP at 1230GMT. The expectation is for a slight upward
There has been a fairly muted steer from action later in the US session which has seen markets lower again without any real selling pressure taking hold. On Wall Street the S&P 500 closed 0.2% lower. Asian markets focused on the weaker than expected Japanese data which showed retail sales disappoint and the inflation figures (adjusted for the sales tax hike) coming in at flat which suggested that Japan was on the brink of moving back into deflation. This is a double edge sword as it suggests the economy is slowing but could also induce further stimulus from the Bank of Japan. The Nikkei was 1% lower overnight. European markets are looking on the bright side this morning, with slight gains being seen.
Forex markets are showing a dollar strength beginning to resume, with the euro and the commodity currencies (Aussie and Kiwi) are under more pressure as the oil price has just dipped back slightly today. There is little significant data being released from Europe so traders will be looking towards the final reading of US Q4 2014 GDP at 1230GMT. The expectation is for a slight upward
US dollar begins to strengthen once more as GBP/USD threatens a sell signal again
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