Forex News & Market Analysis

The New Zealand dollar’s slump continues. Poor domestic data followed by a dovish RBNZ and now cuts in growth forecasts by the government have all applied intense pressure on the kiwi in recent weeks.

On Tuesday Donald Trump stated at a campaign rally in Phoenix that he would close Congress if necessary to build a wall along the US/ Mexico border to stop the flow of undocumented Mexican immigrants entering the US. This has spooked Mexican peso traders, which had been one of the top performing EM currencies so far this year.

It is not always when one calls London session boring, but this morning wasn’t fun at all. It was like watching paint dry. There was minimal movements in stock indices, commodities, bonds and FX markets.

A stock from one of the most beaten-down sectors led one of the U.S. stock market’s best days for weeks

Short covering has boosted the US dollar from severely oversold levels ahead of the Jackson Hole Symposium later on this week.

BHP Billiton's strategic shifts may have a back-seat driver

US bulls were tested on Monday after the S&P 500 threatened to break below the 100-day moving average at 2417, a key support level. Although the index managed to stay above this level, it didn’t bounce off this support signalling that the market may be getting fatigued with the slow grind higher in US blue chip indices.

There is a lot of expectation that this week’s Jackson Hole conference from 24-26th August will deliver some much-needed direction to the markets. However, movement in the FX market suggests that we may be expecting too much from global central bankers’ as a global race to the bottom in the FX market is currently taking place.

n this largely data-void week, markets are likely to remain choppy.

After Friday’s unexpectedly sharp rally, a pullback of some sort was always likely, although the magnitude of the drop is somewhat surprising. But with oil prices now at or near key technical support levels we may see the buyers return again at some point this week and take control again.

Standard Life Aberdeen shares continue to signal investors are less than assured about the new company.

European equity indices have been under pressure since peaking in May/June. The Eurostoxx 600 index and the Dax have lost approx. 6% each since then and are testing some key support milestones including the 200-day sma. We believe that European stocks may bounce from here.