Nasdaq is poised to launch a platform for foreign exchange trading which it says would make the $5 trillion-a-day global market more transparent and would diversify its own business, a top executive from the stock market operator said.
The euro hit a ten-week peak on Thursday, tracking European bond yields higher and benefiting from a sell-off in the dollar after weak U.S. jobs data added to speculation that the Federal Reserve will delay raising interest rates.
The dollar rose against the yen and bounced from a two-month low against a basket of currencies on Friday, drawing encouragement from signs that a recent patch of soft economic data may be coming to an end.
The next Fed meeting is Jan. 28-29, and we believe this will serve as a rally-capping influence on equity markets. If the Fed executes another taper this month, we believe the S&P 500 will work on a correction, and possibly approach 1800.
The big story in the FX markets today is the inflation data coming out of Japan last night. Consumer prices in Japan excluding food rose 0.4% in June, beating economists’ forecasts, and propelling the SEP13 Yen/USD futures to a significant short-covering rally.