U.S dollar strengthens as stimulus hopes fade

Overnight market activity shows investors have entered a price discovery phase ahead of Friday’s Jackson Hole conference, prompting losses across the risk spectrum and a stronger greenback. Markets are assessing each incoming data pulse in the context of the whether the Federal Reserve will launch a third round of quantitative easing, prompting a ‘bizzaro world’ Read More

Mild bid tone guides greenback higher ahead of Fed conference

True to recent form, markets remained transfixed on the forthcoming Jackson Hole conference on Friday but there remained little in the way of convincing moves across the risk spectrum. The Aussie dollar continue to be capped below 104 US cents with moderate weakness noted in throughout the U.S session but remained supported above key short-term Read More

Disappointment risk grows ahead of Jackson Hole

Risk currencies strengthened overnight largely responding to a heavy greenback across the board. Despite what appears to be a moderation in expectations ahead of this Friday’s Jackson Hole conference, we’ve yet to see this manifest in US dollar performance, suggesting a greater risk of disappointment in the ensuing period. After moderate losses early this week, Read More

A$ maintains slow grind lower; Fed’s Evans calls for immediate action

Hopes of ECB intervention continued to underpin gains across European equities overnight, despite the latest German IFO business climate release falling to its lowest level since March 2010. Business conditions fell to an index level of 102.3 in August, from a previous 103.3, raising further doubts over Germany’s economic prowess amid constant negativity from the Read More

Stimulus conjecture to reach critical mass ahead of Fed’s Jackson Hole conference

The week ahead will see global markets transfixed on Friday’s gathering of the world’s central bank elite in Jackson Hole, Wyoming, for the annual Kansas City Fed symposium. In recent years the event has attracted increased attention in light of the common challenges faced by global central banks, as a result of the financial crisis. The Read More

Euro leads, A$ lags, but confusion reigns supreme

True to form, markets continued to interpret a largely inconsistent set of directives overnight, with mixed macroeconomic feedback from both sides of the Atlantic providing little in the way of clarity. Amid general optimism European leaders will finally take decisive steps to stem the regions decline, growth concerns surrounding the economic health of flagship Germany Read More

U.S dollar slides as Fed keeps QE dream alive

As anticipated, the release of the Fed policy meeting minutes were the key directive overnight, with the ensuing reaction across currencies showing the prospect of a third round quantitative still very much on the table. Although members remain cautious of the implications, the minutes show support for further asset purchases while once again floating the Read More

Euro regains its lustre on ECB expectations

The Euro led a risk currency charge higher overnight with the EURUSD pair breaking the upside of US$1.24 for the first time since early July. Rumor and innuendo continue to drive currencies with investors focusing on the possible ECB initiatives in the pipeline to bring down the borrowing costs across Europe’s periphery. A well-attended Spanish Read More

Euro drifts higher in lethargic trade; RBA minutes on tap

In what appeared to be a largely risk-neutral and lethargic offshore session, markets continued to tread water ahead of major forthcoming event risk such as the Fed’s annual Jackson Hole summit, FOMC meeting, and further feedback on ECB easing initiatives. On balance, it was a rather unspectacular session with little in the way of top-tier Read More

A$ slides as investors rein in stimulus expectations

Despite moderate support across U.S equities, the Australian dollar trajectory turned sharply south on Friday with the AUDUSD pair crossing the downside of various points of support, before bottoming out just above 104-figure.  The very same factors which have underpinned recent gains are now working against Aussie dollar, as market participants discount the chances of Read More

Risk rebounds as Merkel rejoins the fray; Euro resumes upside trajectory

Fresh from vacation, overnight German Chancellor Angel Merkel echoed recent comments from ECB President Mario Draghi, saying “we feel committed to do everything we can in order to maintain the common currency.” In a further display of solidarity, Merkel also said the recent European Central Bank decision to reboot peripheral bond-buying operations on a conditional Read More

Subdued inflation puts U.S stimulus back on radar

Subdued inflation data in conjunction with slower growth expectations have once again given rise to hopes of near-term U.S stimulus. Headline inflation was flat in July against expectations of a moderate increase of 0.2 percent, representing annual growth of 1.4 percent. Core prices rose 0.1 percent, or 2.1 percent in yearly terms from 2.2 percent Read More

Australian dollar falls as U.S stimulus hopes fade

The Australian dollar has taken another leg lower overnight coinciding with the release of the latest U.S retail sales report which jumped 0.8 percent in July, outpacing expectations of a more moderate 0.3 percent rise. Although we saw an immediate move to the upside from high-beta currencies such as the Aussie and Kiwi, we soon Read More

A$ slips as investors second guess U.S/Chinese stimulus

After a peaking above the 106 US cent region late last week, the Aussie dollar’s risk credentials came to the surface overnight, taking a broad leg lower against its major counterparts. The AUDUSD pair slipped to lows just below 105-figure which was once again was met with support to stabalise around current levels of 105.15 Read More

China fears reemerge on trade shortfall; RBA shines light on A$ strength

Pessimism surrounding China’s growth sustainability pressured global markets on Friday after the latest trade data failed to keep pace with expectations. Exports of Chinese goods and services rose 1.0 percent annually in July from of 11.3 percent in June, while imports rose at an annual pace of 4.7 percent, down from 6.3 percent. The trend Read More