Daily

For the first time this year the Fed raised interest rates and the market promptly sold off. The Fed raised it’s benchmark interest rate 25 basis points, only the second hike in nearly a decade, and indicated that it might hike three more times in 2017. The Fed signaled confidence… read more

The dollar was stagnant on Tuesday as traders stuck to the sidelines a day ahead of the Federal Reserve’s latest policy decision. The Fed begins its two-day rate-setting meeting today. It is widely expected that they will announce a 25-basis point rate hike tomorrow. However, since this decision is so… read more

Oil prices rose Monday after more oil-producing countries including Russia, agreed to slash production. A move aimed at pushing the oversupplied oil market into balance, so as to prop up a crude market that had been stuck in a two-year slump. The non-OPEC producers agreed to scale back their output by… read more

The Euro fell overnight as the market interpreted commentary by Mario Draghi as meaning that QE is here to stay. The expectation of a rate hike in the U.S. this week also helped to push the currency further and fueled risk appetite. Equity markets soared with the German Dax now… read more

The euro dropped over 1 percent last night after the European Central Bank extended their asset purchase program until the end of next year. Comments by ECB President Mario Draghi that cuts to the size of the program should not be viewed as tapering were also a factor. The ECB said… read more

The AUD managed to brush aside the weakest GDP number since the GFC. According to the ABS, real GDP in seasonally adjusted terms fell by 0.5% to leave the year-on-year increase at 1.8%. Markets had been expecting a quarterly decline of 0.1% which would have left the year-on-year growth rate… read more

US November NonFarm Payrolls brings an end to a very volatile week in the markets highlighted by waves of USD strength and OPEC Meeting Oil Production Deal that sent OIL/USD above $50 a barrel for the first time in months. A strong US NFP number (forecast is 177k vs. 161k… read more

Centre of attention are events in Europe as sentiment shifts from Trumps bull run as stocks and the USD held. The US dollar index fell 0.3% at NY close as USD/JPY survived above the 111.50 despite closing 1.15% lower.   Oil finished at 47.08, up 2.2%, as speculation surrounds Wednesday’s… read more

  AUD/USD finished at week highs 0.7450 as commodities surged in the Chinese and US exchanges. Iron Ore is back above $80 and is supporting the view that China economy rebound is gaining traction. Combined with Trump US infrastructure plans the general outlook for the AUD is improving but the… read more

The Australian Dollar rose to high of 0.7446 before European sellers controlled the price to 0.7420 at the NY opening. With Trump as the catalyst Aussie fell to 0.7373 before levelling off in a 0.7380 corridor. With emerging market risk unsettled by overnight events it’s unlikely we’ll see a recovery… read more