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Oil and Equities up!

Crude has jumped over 4% as hopes of an output cut grow ahead of next week's OPEC meeting. Iran's oil minister has increased these rumours by slightly hinting that a production cut will be agreed at the next meeting. As a result of the crude price increase we have seen equity markets climb to new highs. Cable (GBP/USD) pulled it's way towards the 1.25 figure and even EUR/USD showed some strength - how long this lasts for remains to be seen as we are very much backing further dollar strength in the coming weeks.

Another poll! Another upset?

The beginning of (what should be) a quieter week starts with the news that Marine Le Pen has taken a commanding lead in the latest French presidential election poll.
Now, we have a lot of skepticism of these 'polls' due to their total lack of accuracy for Brexit and the U.S. presidential campaign. But considering that the UK's Independent newspaper informed us just five days ago that "according to pollsters Le Pen has next to no chance of winning the French presidency", we feel there may actually be some slight element of truth in this latest poll.

Can I have some more please?

"Good Ol'" Janet Yellen has pushed the dollar index into the stratosphere as it powered through the psychological 100 level with supreme ease to levels not seen for over 12 years. We think the dollar bulls will continue this charge following Yellen's "all systems go" to increase interest rates at a more aggressive pace than previously thought. Her comments were further bolstered by strong U.S. data releases and we can see no reason why this dollar bull run should end anytime soon.
On the European front start paying some close attention to Italy (Europe's fourth largest economy).

All eyes on the Fed!

All eyes on the Fed today and especially Janet Yellen's comments on how the Federal Reserve will likely deal with anticipated rising inflation following the "Big guy's" victory for President.
Markets believe that his policy of tax cuts and huge spending plans will kick-start the inflation process and therefore the pricing in of extra interest rate rises.
It would now be a massive shock if there isn't a rate hike in December as it's already now priced in.

Quiet day - for a change!

With the FX market pretty docile (for once) yesterday and gold doing absolutely nothing of note, the focus shifts to crude oil. Remember there's always an opportunity if you look for it. Crude has jumped in the last 24 hrs despite the fact that U.S. inventories came in way over initial estimates.

Early Trump talk good for the markets!

Well, after taking a bit of an battering the Euro seems to have stemmed it's slide somewhat even if we think this could be just a temporary halt in proceedings.
We've seen broad dollar strength throughout and we feel this could continue after witnessing wild moves following Trump's victorious fist pumping.
Markets could take kindly to the fact that President Trump with a Republican controlled Congress will signal a looser monetary policy combined with tax cuts.
GBP is settling down a bit but we're expecting this to be short-lived with increased volatility.

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