16/ 08/ 2016

Poor US data continues to hang over the Greenback

Markets continued to digest last Friday’s high tier data from the States yesterday. Retail sales and PPI (Producer Price Index) both underperformed against market expectations. The retail sales figure showed no growth in July, whilst core retail sales plunged to -0.3%. Consumer spending is the main driver of the service led US economy and after the latest set of poor readings it suggests the chances of a Fed rate hike are beginning to fade this year. PPI declined to -0.4%, its biggest decline since September 2015, a figure which implies the inflation rate in the US will likely soften.

14/ 08/ 2016

The week ahead | USD will look into FOMC minutes for direction

This week the Great British Pound is expected to experience some fluctuations, as one of the first major batches of post-Brexit economic data will be released. Elsewhere, the US inflation report, some Fed speakers and the FOMC meeting minutes and Japanese GDP growth for the second quarter, will all be closely watched by market participants. 

12/ 08/ 2016

Summer liquidity could cause high volatility

The Greenback remained buoyant yesterday, despite the markets lowering expectations for a Fed rate hike and the profit-taking seen after last week’s bullish Non-Farm payrolls. The systematic flow is still relatively mooted, however, yesterday we saw some Sterling selling against the Euro and Dollar, with GBP/USD testing the post-Brexit low once again.

11/ 08/ 2016

New Zealand cut rates to record low

After last week saw the Bank of England cut rates and outline further QE, yesterday’s talk was the failed first round of the new asset bond purchases. The BoE’s attempt to purchase £1.17bn worth of gilts fell short and only saw investors offering to sell £1.12bn.