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FxProUpdates

Forex: Lower growth, lower inflation

Yesterday’s US GDP data complimented the weaker than expected UK GDP figure from earlier in the week giving yet another piece of evidence of slowing growth. The dollar didn’t react much to the softer numbers as normally you would expect a sell off after such a release, but Wednesday’s FOMC statement remains firmly in the mind of investors and we’ve seen the probability of a rate rise in November increase a little. With growth lower the focus on inflation will increase into year end and we saw ...

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Forex: Inflation still a concern for FOMC

Markets interpreted last night’s FOMC statement as an admission that a December rate hike is still very much a possibility allowing the dollar to bounce and overnight Asian equities have weakened meaning a softer open for indices is expected in Europe. On the back of the statement EURUSD fell sharply taking it back below 1.1000 for the first time since September and this morning it trades at 1.0940 with the next major support seen at 1.0800, where if we see a break below we are likely to see an ...

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Forex: Deflation pressure abounds

Further evidence yesterday suggested that central bank hawks are likely to remain in the minority following weaker than expected data from both sides of the Atlantic with UK GDP and US consumer confidence that both disappointed. Overnight the Aussie has taken a nose dive following a much weaker than expected inflation release and once again we see the tumble in oil prices applying further deflationary pressure around the globe. The current inflation issue is causing a dilemma for central banks ...

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Forex: UK GDP not the key for BOE

Today’s sees the first reading of Q3 GDP data in the UK and it is expected to dip to 0.6% from 0.7% in Q2. Recent manufacturing surveys have indicated that the sector is slowing and despite manufacturing making up only 10% of the UK economy, the pace of deceleration is starting to become a concern. The services sector, making up the vast proportion of the UK economy, has also seen survey data rapidly declining in the past three months and at the same time consumer confidence has dipped ...

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Forex: Central bank largesse

Most central banks around the world have interest rates near to or even below zero with many still firmly in an easing cycle. The ECB and PBOC sent risk assets higher last week with both their words and actions as the markets are now expecting not only the Federal Reserve to keep rates on hold this December, but the ECB to loosen monetary policy even further. With evidence globally that shows growth is either slowing or struggling to gain any traction we could see central bank largesse ...

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Forex: Words louder than action

ECB President Mario Draghi maintained his reputation of moving markets without actually doing anything in the wake of yesterday’s ECB policy meeting. His openness towards further easing was the main factor pushing down the single currency and away from the 1.15 level which has caused previous pain for the central bank. But it wasn’t an explicit promise to do more, rather a pledge to re-examine at the early December meeting, in part on the back of the downside risks from emerging market strains. ...

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Forex: ECB bringing volatility

For the past four sessions, EURUSD has been confined to the 1.13 handle throughout the trading sessions, another illustration of the falling volatility we’ve seen over the recent times. It would be hard to see this continuing today, with the ECB meeting taking place. The chances of further policy measures look to be slim at this point in time. Their quarterly survey of the credit conditions this week suggested that lending conditions were improving, but there remain concerns regarding the pace ...

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Forex: Watching yen crosses

As I talked about yesterday, one of the factors that has been crushing FX volatility recently has been the removal of near-term rate move expectations, principally from the Fed, but also from other central banks. We’re going to have more indication on this over the next couple of days with the Bank of Canada decision today and the ECB tomorrow. Overnight, we’ve also seen the Reserve Bank of Australia strike a relatively bullish tone in their latest set of minutes, which gave some further legs ...

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Trade Ferrari Shares Today

Ferrari has managed to stir an otherwise subdued IPO market this week as excitement continues to grow regarding its public offering. Shares in the company were priced yesterday at $52 per share, valuing the company at just under $10 billion. Ferrari shares are to begin trading today on the New York Stock Exchange at market open (16:30 server time). We are delighted to be offering you the ability to trade this important moment in the iconic sports car manufacturer's history. FxPro clients will ...