Category: Daily blog

Fed rate decision today

The Fed is certain to (finally) lower interest rates following the conclusion of today’s meeting, the only question is whether it will cut by 25bps or 50bps. Up until late last week, the market was convinced that a quarter-point reduction was most likely. Since then however it has been steadily raising the chances of a […]

Dollar continues to drift lower

The dollar remains under pressure ahead of the outcome of this week’s Fed meeting with the market continuing to raise the chances of a 50bps cut in interest rates (now seen as almost 50/50). The euro and sterling have strengthened to around $1.1125 and $1.3210 respectively against the US currency, not far off last month’s […]

Fed in focus

The euro and sterling are marginally firmer against the dollar ahead of this week’s Fed meeting, trading at around $1.1110 and $1.3160 respectively, while EURGBP remains tightly range-bound as it continues to hover just below £0.8450. The outcome of the Fed’s two-day monetary policy meeting, which concludes on Wednesday, has plenty of potential to trigger […]

ECB cuts, attention turns to the Fed

The ECB cut the deposit by 25bps to 3.5% at yesterday’s meeting, as expected, but gave nothing away regarding the pace and timing of future moves. The market has pared back expectations for rate cuts a little post meeting, but still expects at least one more 25bps reduction this year, is pricing in about a […]

ECB meeting the focus today

Yesterday’s inflation data in the US were marginally firmer than the market expected, providing some modest support to the dollar. The euro and sterling have both slipped a little further against the US currency to trade at around $1.1015 and $1.3050 respectively this morning, leaving EURGBP largely unchanged just below £0.8450 as it continues to […]

Bond yields continue to head south

While bond yields continue to decline as the market prices in substantial central bank interest rate cuts over the next 12-15 months, the main currency pairs continue to trade in tight ranges. The euro and sterling are both little changed against the dollar, trading at around $1.1050 and $1.3090 respectively this morning, while EURGBP continues […]

Sterling marginally firmer

It is quiet enough in FX markets with the main currency pairs not a whole lot changed from yesterday morning. The euro is a little softer against the dollar trading at around  $1.1040, while sterling is a touch  firmer against the US currency at about $1.31 following this morning’s UK labour market data, leaving EURGBP […]

Mixed jobs report, volatile markets

Friday’s employment report in the US was a mixed bag – with job gains in August falling shy of expectations but the unemployment rate nudging lower – and hence triggered quite a bit of volatility across bond, equity and currency markets. In FX, the euro and sterling traded within respective ranges of about $1.1065 to […]

Key US payrolls data due today

Relatively subdued day in markets yesterday, with the focus now very much on August US payrolls data due later today. The data is being very closely watched as this is the last major US labour market release before the September FOMC meeting. The dollar is coming under some pressure and has lost further ground with […]

Further signs of cooling in US labour market

Weak US data including poor job openings in July saw US treasuries make further gains as the market turns its attention towards Friday’s payrolls release. Equities also sold off further on concerns about the US economic outlook. The dollar lost a little ground against the euro, moving to $1.1080 this morning, and also against sterling, […]