Why the currency market could get more interesting
We think the currency market is going to get more interesting in the days and weeks ahead. Why? Well, we're seeing a whole lot of US dollar weakness on the back of more dovish communications from the Fed Chair that suggest that forward guidance goal post could keep getting pushed down the
ForexLive European FX news wrap: Risk rebounds after early stutter
- NZD leads, JPY lags on the day
- European equities higher; E-minis up 0.4%
Risk ramps higher ahead of North American trading
After a bit of a hiccup earlier in the day, owing in some part to the selloff in Hong Kong stocks, the market is running with the reassurance from Fed chair Powell yesterday.
US MBA mortgage applications w.e. 19 February -11.4% vs -5.1% prior
- Market index 790.6 vs 892.6 prior
- Refinancing index 3,848.1 vs 4,337.0 prior
It looks like the housing market is not taking too kindly to the higher rates as both purchases and refinancing activity took a heavy dip in the past week. After
Fedspeak on tap for North American trading later today
Here's the agenda:
1500 GMT - Fed chair Powell testifies before the House select committee
I wouldn't expect anything new from Powell that we haven't already heard of yesterday. But again, it will serve as a reminder
Japan reportedly to decide on Friday whether to end state of emergency measures
The report cites remarks by Japanese prime minister, Yoshihide Suga, in saying that the decision will be taken on Friday as to whether or not they will end the state of emergency measures in place that is set to run through to 7 March.
Heads up: BOE speakers scheduled for today
Here's the agenda:
1200 GMT - BOE's Haldane speaks in a seminar
Haldane will be making a speech in a flagship seminar on the changing world of work, wellbeing and management. As such, I wouldn't expect much policy remarks, if any
US futures back to flat levels on the day as investors brush aside early pessimism
Of note, Nasdaq futures have erased a 1% drop from the tail-end of Asian trading as sentiment improves in European morning trade so far.
Franc meltdown continues as risk tones keep calmer in European trading
The meltdown in the franc over the past two days is also helped by the turnaround in sentiment with US equities rebounding strongly after Fed chair Powell's testimony yesterday, and also as European investors are brushing aside the risk averse tones earlier.
Switzerland February Credit Suisse investor sentiment 55.5 vs 43.2 prior