Daily Commentary 29/04/2016

Central Banks continued to dominate currency markets, with the Bank of Japan shocking markets, by refusing to add to expected action. Governor Kuroda resisted the much anticipated expansion of Monetary Policy and the Yen surged. The JPY went from 111.50 to 108.00, the rally reflecting the surprise markets suffered, despite some sobering economic data. Japanese…

Daily Commentary 28/04/2016

The FOMC meeting concluded as expected, with no change to the QE, but language suggesting a future rise. The Fed left out the previous ‘risk poses’, in the description of the global economy, setting up speculation for the much telegraphed interest rate rises. This is no surprise because global fiscal ineptitude and growth conditions remain…

Daily Commentary 27/04/2016

Markets were in a state of limbo as the Fed sat down for their scheduled two day meeting. There are high indications of the status quo, continued QE and no rate rise, as economic data remains soft. Growth has been benign, globally, although there are green shoots in the commodity sector. The Obama tour of…

Daily Commentary 26/04/2016

A quiet start to what promises to be an extremely busy week, dominated by an avalanche of global economic data, controlled by the Central Banks. The FOMC will hold a two day meeting, with no change to QE expected, although commentary remains central to market direction. The Bank of Japan also releases Monetary Policy, later…

Daily Commentary 22/04/2016

The ECB left rates unchanged overnight and President Draghi signaled QE would continue for an extended period. The effectiveness of the bloated monetary largesse is under serious question from many economists. The Fed has employed the massive expansionary monetary policy to combat recession and deficit/debt crises and so follows other central banks. The ECB has…

Daily Commentary 21/04/2016

It was a quiet day for data releases yesterday but a surprise gain in Existing House Sales out of the US strengthened the USD despite a contraction in Housing Starts and Building Permits the previous day. The EUR traded below 1.1300, while the GBP trades lower at 1.4330, both suffering the strengthening Dollar. Commodity prices…

Daily Commentary 20/04/2016

European equity markets rose higher, after the lead from Wall Street and Asian markets, boosted by the stronger important ZEW Economic Sentiment data. Oil prices continued to rebuild after the weekend derailment post-Doha. This has boosted commodities and the associated currencies, which have out-performed majors, versus the reserve. The AUD raced through 0.7800, while the…