After the big Draghi disappointment, an easing of monetary policy that didn’t meet the expectations created by the man himself sent EUR/USD 400+ pips higher, the Draghi show is back. What can we expect? Here are views from Nomura and Barclays: Here is their view, courtesy of eFXnews: Nomura: We do not expect the ECB … “Will Draghi Down the euro this time around?”
Category: Opinions
BOC expected to cut rates to 0.25% – Barclays, Nomura
The Bank of Canada is facing a dilemma regarding its policy: on one hand, the economy needs support with falling oil prices. On the other hand, the low value of CAD is certainly supportive. Here are views from two banks that see a cut coming: Here is their view, courtesy of eFXnews: Barclays: We expect … “BOC expected to cut rates to 0.25% – Barclays, Nomura”
AUD/SGD: Against All Odds
The Reserve Bank of Australia has been steadfast in its 2.00% cash rate policy in spite of the continuing regional economic contraction impacting Australia’s commodity export economy. At the 1 December meeting RBA Governor Glenn Stevens’ statement began with an upbeat tone but the challenges faced by the economy did not go unnoticed: “…available information … “AUD/SGD: Against All Odds”
It’s All About The ‘Base Effects’ In FX Market Coming
The initial crash in oil prices caused a big drop in inflation. While oil prices are certainly pressured, the huge fall seen in late 2014 is already over a year behind us, changing the “base effect” behind. That is going to be the talk and what moves currencies: Here is their view, courtesy of eFXnews: “The one-year … “It’s All About The ‘Base Effects’ In FX Market Coming”
A risk to US because of Fed over-optimism – CIBC
Comments coming out form the Fed suggest more hikes this year, and a general sense of stability. This comes in contrast to the worrying economic indicators and falling stock markets. This may turn against the dollar, warns CIBC: Here is their view, courtesy of eFXnews: Recent speeches suggest that most Fed officials are still keen … “A risk to US because of Fed over-optimism – CIBC”
Odds Tilting On BoC Cut…Slightly – CIBC
With the crash in commodities and CAD, will the Bank of Canada be open to an immediate cut? The team at CIBC previews: Here is their view, courtesy of eFXnews: Being the Bank of Canada Governor is a tough job, but sometimes forecasting what a BoC Governor will do is even tougher. Unlike the Fed, … “Odds Tilting On BoC Cut…Slightly – CIBC”
AUD/USD: Trading the Chinese GDP Jan 2016
Chinese Gross Domestic Product (GDP) is a measurement of the production and growth of the economy, and analysts consider GDP one the most important indicators of economic activity. A reading which is better than the market forecast is bullish for the Australian dollar. Here are all the details, and 5 possible outcomes for AUD/USD. Published … “AUD/USD: Trading the Chinese GDP Jan 2016”
EUR: ECB Under Mounting Pressure – Barclays
The European Central Bank meets for the first time in 2016, and it certainly is under a lot of pressure, from various angles. The team at Barclays analyzes: Here is their view, courtesy of eFXnews: We expect the ECB to ease policy further in 2016 as deflationary pressures worsen. However, we think new measures are … “EUR: ECB Under Mounting Pressure – Barclays”
4 Reasons To Sell AUD/USD, NZD/USD – Deutsche Bank
The Australian and New Zealand dollar both suffered from the “risk off” sentiment, but there may be more in the pipeline. The team at Deutsche Bank explains: Here is their view, courtesy of eFXnews: In a strategy note, Deutsche Bank advises clients to sell AUD/USD, and NZD/USD arguing that Chinese depreciation and deteriorating basic balances should … “4 Reasons To Sell AUD/USD, NZD/USD – Deutsche Bank”
EUR/USD: Trading the UOM Sentiment Index Jan 2016
The University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. An increase in consumer confidence is a positive sign about the health of the economy and is bullish for the US dollar. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Friday at 15:00 GMT. Indicator … “EUR/USD: Trading the UOM Sentiment Index Jan 2016”