Daily Commentary 01/06/2016

The long weekend enabled market analysts to consider the Feds options. Yellen has telegraphed an interest rate rise and this should come sooner, rather than later. Monetary policy is fast becoming the problem, rather than part of the solution, so Central Banks need to correct the course. Pressure has been mounting, as proof of the…

Daily Commentary 31/05/2016

Markets were quiet, as the US celebrated the Memorial Day holiday, taking a long weekend along with the UK. This insured there was a quiet start for global markets with little in the way of economic data releases. The Yen continued to give ground, breaking above 111.00, with flat local retail sales. There has been…

Daily Commentary 30/05/2016

Yellen confirmed that it would ‘probably be appropriate’ to raise interest rates in the near future with a proviso! The Fed have always had a pre-condition to raising rates, the global economic recovery, which has failed all benchmarks. The world has missed a complete economic cycle, since the global recession, with more to come because…

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…