Daily Commentary 27/05/2016

Equity markets were quiet, after recent rises, ahead of the US GDP number and Yellens address. Expectations are for Yellen to confirm improving economic conditions but leave rates unchanged until next month. Six months into the calendar year and interest rates remain on record lows. This is despite signaled rises from the Fed! The EUR…

Daily Commentary 26/05/2016

Markets remained steady overnight, with equities holding on to gains, while the Dollar was relatively static. Markets still anticipate a Fed rate rise in the next month, supporting the rise in the reserve, while risk appetite rises. The EUR traded around 1.1150, while the JPY 110.50 and the GBP hit 1.4700. The Bank of Canada…

Daily Commentary 25/05/2016

Equity markets were unperturbed by the prospect of tighter US monetary policy with the S&P500 up 1.3% overnight. The USD continued to rally, trading 1.1130 against the EUR and 1.4620 against the GBP. The Pound was supported by the latest poll showed that older voters, who are more likely to vote and who previously backed…

Daily Commentary 24/05/16

The conversation overnight was the US Fed members commentary. The Fed members from San Francisco and St Louis both had public speeches and confirmed rate rises were on the cards. San Francisco Fed President, John Williams, foresaw two or three this year and three or four in the following. Unless this guy can actually see…

Daily Commentary 23/05/2016

Markets closed the week steady with the Dollar holding higher levels after telegraphed Fed rate rises in the coming month. The EUR consolidated above 1.1200, while the JPY moved back above 110.00, as the GBP eased back to 1.4500. Commodity currencies have been more impacted by the reserve, with the AUD trading just above 0.7200,…

Daily Commentary 20/05/2016

Oil demand is on the rise and so is the price. This has supported energy companies and boosted equities, although the Fed has thrown cold water on that, with the prospect of a rate hike in June. The Fed minutes suggested a rate hike may come as early as next month and boosted the Dollar.…

Daily Commentary 19/05/2016

Fed minutes were released with further talk of rate hikes. The Federal reserve has held interest rates at record low levels for years to compensate fiscal ineptitude and to stimulate growth. The results are questionable, at best, resulting in asset bubbles and anemic growth. The latest Fed minutes has intimated a rate hike as early…