
Today (Nov 11th) is Armistice Day in the UK , Remembrance Day in Canada and Veterans’ Day in the US .
All are public holidays. While this will not necessarily result in inactive
markets, any price action there is will be tempered by the fact that trading
can be expected to be thin. It might, therefore, be appropriate to remind
ourselves of the highlights from the recent past.
On Nov 9th the FOMC made what was a dollar positive
statement, commented on here.
Last Thursday there was an announcement from the European Central Bank
that interest rates were to be reduced by 25 bps to 0.25%. The market claimed
to be surprised by this but anyone that was watching the inflation figures for
the Eurozone, as OmiCronFX was, would have been
less taken aback by this development.
Friday brought the delayed US Non Farms Payroll report which, a over
200k new jobs, was a blockbuster in terms of recent such statistics. Developments
such as this have raised, by a considerable margin, the expectations for an end
to Quantitative Easing (QE) in the United States . This has
implications for all the major currencies as well as for the crosses, and for
hard commodities such as gold, silver and other precious metals.
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