Another RBNZ Quantitative Easing Program

While the New Zealand Dollar has been out of the limelight over recent months given the tide of hawkishness sweeping across central banks elsewhere in the G10 bloc, focus was once again on the antipodean currency yesterday. Speaking during an interview with a domestic broadcaster, RBNZ assistant governor John McDermott caught the market offsi...

2018-05-24 James Harte Read more
Market Pressure Mounts on Italian Assets

One Step Closer To The Edge Italy has moved even closer to unprecedented territory this week and while an eleventh-hour failure cannot be totally counted out, it seems that a government between The Five Star Movement and League is likely to happen. What isn’t clear, however, is whether such a government would be capable of delivering its pledge...

2018-05-24 James Harte Read more
ECB minutes

Today's Episode of Fundamental Fun is the release of the minutes from the last ECB meeting, which are officially known as - and that's how they appear in the economic calendar - as Account of Monetary Policy Meeting. So, what are they? When the European Central Bank has it's policy meeting, the decisions that are made are immediately communic...

2018-05-24 Daniel John Grady Read more
UK wages finally start to outpace inflation

The unemployment rate in the United Kingdom showed that employers in Britain increased the pace of hiring, with data supporting that more workers were added. However, despite the higher pace of hiring, there was a clear lack of wage growth. The data suggests that the Bank of England will most likely continue to remain on the side lines amid t...

2018-05-24 John Benjamin Read more

The recent strength in the Swiss franc has extended to the point of gaining versus all major currencies, including the US dollar over the past 2 weeks. Not coincidentally, the start of this period coincided with the breakout in the drama revolving Italian politics. But there are other factors enforcing franc strength. Will the currency require c...

2018-05-24 Ashraf Laidi Read more
Aussie Unemployment Rate Edges Higher

The Aussie unemployment rate edges higher as it's seen rising to a nine month high in April at 5.6% from data provided by the Australian bureau of statistics last week. The number of people employed beat expectations and grew on an increase in full-time jobs. Overall, 22,600 net jobs were added during the month of April which beat forecasts o...

2018-05-23 John Benjamin Read more
German economy loses momentum in Q1 2018

The German economy loses momentum in Q1 2018, rising at a slower pace than initially forecast in the first three months of the year. Data from federal statistics agency, Destatis showed that the Eurozone's largest economy grew at a pace of just 0.3% on a seasonally adjusted basis during the three months ending March 2017. The pace of growth w...

2018-05-22 John Benjamin Read more
Mester aims to maintain Fed's course

The President of The Cleveland Federal Reserve Bank, (known to be a hawk in the FOMC) Loretta Mester aims to maintain Fed's course, stating that the central bank must continue its gradual approach to raising interest rates as the inflation rate still did not reach the central bank's 2% inflation target rate. She spoke on Monday in Paris, amid a ...

2018-05-21 John Benjamin Read more
JPY Positioning Turns Net Long Again

EURUSD Non-Commercials reduced their net long positions in the Euro last week, selling 5k contracts to take the total position to 115k contracts. EUR upside has now been net sold for each week over the last month as the market reacts to a downturn in eurozone economic data and a more cautious tone by the ECB subsequently. Speaking at the ba...

2018-05-21 James Harte Read more
Fed minutes and UK data

The economic calendar for the week ahead is broadly limited to some key themes of Fed minutes and UK data. The FOMC meeting minutes will be coming out on Wednesday which is likely to remain in the spotlight. On the economic front, the UK will see a busy week. Data this week includes the inflation, retail sales and GDP numbers coming up. The d...

2018-05-21 John Benjamin Read more