News & Analysis
Our focus is on helping our clients make better informed trading decisions by providing a balanced and unbiased view of the foreign exchange market.
This morning’s German GDP beat may offer some support in the short term. The Eurozone’s largest economy was widely expected to have entered a technical recession in Q3.
The Eurozone’s largest economy was widely expected to have entered a technical recession in Q3, but stronger consumption and government expenditure offset a sharp downturn.
Price action was fairly muted in G10 FX again yesterday despite threats by President Trump to substantially raise tariffs on China.
Sterling rose sharply yesterday after Nigel Farage announced the Brexit Party would not be contesting Conservative Party seats won in 2017.
The RBNZ faces a finely balanced decision this week, with domestic data offering both positive and negative surprises.
Riots and civil unrest predominantly due to the austerity measures has been a key driver for LATAM markets over the past few weeks as government’s attempt to restructure their fiscal liabilities.
After a strong week, the US dollar trades on the back foot this morning following comments from President Trump on Friday that has dampened optimism of a more substantial trade deal.
Our view is that the Aussie will be broadly flat in Q4 as the RBA cuts rates once more and US-China tensions ease, but remain unresolved, creating persistent uncertainty.
Our view is that USDCHF is likely to remain broadly stable in Q4 and Q1, as the effects of easing trade tensions lead to reduced demand for CHF as a haven asset, but the US dollar itself deteriorates.
Offsetting ECB and FOMC easing is likely to make for uninspiring EURUSD price action in Q4, although the more limited room for rate cuts by the ECB provides a minor source of strength for the euro.