In the case of GBP/AUD, it’s hard to argue against the recent bullish surge; to wit, the pair is up nearly 5,000 pips from where it was trading this time last year, and rates have tacked on 2,700 pips in just over the last four months alone. With the prolonged uptrend seemingly growing a bit long in the tooth, it’s certainly worth pondering whether we may be at an inflection point.
The U.S. dollar saw gains after a critical manufacturing report in China signaled the world’s second-largest economy is slowing down. Today’s insight includes a bounce-back for oil prices, economic concerns Down Under, testimony from European Central Bank head Mario Draghi and the world’s reaction to China’s slowing economic growth.
The U.S. dollar made gains this morning as markets anticipate that central banks around the world will ease monetary policy. The anticipation comes in the wake of the Federal Reserve’s decision last week to maintain its current rate level.
A market selloff is underway. The dollar is sliding against global currencies after the Federal Reserve decision to keep interest rates level. Today’s news features a slump in global oil prices, a jump for gold and silver, a rising New Zealand dollar, and an update on the Chinese real estate market.
The markets opened up more than 100 points in the first hour of trading as investors seem content to wait out the markets this week ahead of the Federal Reserve's September FOMC meeting, where the central bank will decide whether it will hike interest rates for the first time since 2006.
Thousands of gallons of virtual ink has been spilled on the market implications of the Federal Reserve’s monetary policy meeting decision on Thursday, and we’ll undoubtedly see plenty more analysis over the next few days.