Market movers today A busy week starts off with inflation data from the Nordics. In Norway, strong wage growth continues to support broader inflation pressures, and we expect August core inflation to tick slightly higher to 6.6% y/y (from 6.4%). In Denmark, inflation likely remained more muted, we think headline prices rose 3.0% y/y in […]

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Research China – Downside risks return Financial stress has increased again and put focus again on whether China is heading for a deeper financial and economic crisis. While we do see a rising risk of this happening (25% probability), our baseline scenario remains that China has the tools to avert such an outcome and will […]

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The Reserve Bank of Australia will announce its next rate decision at 04:30 GMT on Tuesday. Markets are pricing in a 45% probability for another rate increase, as inflation has been hotter than anticipated lately. If the RBA raises rates, the Australian dollar could benefit, although it’s questionable whether the currency can sustain a rally […]

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This week, the yuan broke above the 7.0000 handle against the dollar and continued to rise. Generally, the Chinese currency isn’t a popular trade because it’s officially kept within a trading band. The government allowed that band to drift above the technically and psychologically important level for the first time since late last year. The […]

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Markets remain caught between the soft-landing vs overheating narrative. On the one hand, the challenge comes from too high inflation. The US ISM manufacturing prices paid index took a notable jump higher in February, suggesting that producer prices are rising again. In the euro area, February HICP inflation figures came in red hot. While headline […]

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Rishi Sunak is making his first Brexit debut in efforts to resolve the long-running dispute with the EU over trade rules in Northern Ireland. While hopes for a new breakthrough pushed the British pound in the green territory this week, the reaction was relatively modest, suggesting that investors are being prudent by waiting for more clarity to […]

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Markets The EU and the UK struck a deal to reform the Northern Irish Protocol. Dubbed the Windsor Framework, the agreement entails a so-called green lane in the Irish Sea with significantly reduced checks for goods coming from the UK mainland and destined to stay in Northern Ireland. Goods continuing into Ireland, part of the […]

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Market movers today Today we get flash inflation prints from France and Spain for February, which will give us the first indication of euro area inflation this month. Consensus looks for unchanged headline inflation in both France and Spain at 7.0% y/y and 5.9%, respectively. Given the recent rise in yields, we would likely get […]

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Markets Markets clearly are looking for a new unequivocal driver as established trends, especially in interest rate markets, are meeting short term resistance. Maybe the outcome of the US mid-term elections or Thursday’s October CPI release will be able to do so. However, yesterday markets had to rely on their own internal dynamics as there […]

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Eyes on JOLTS job openings ahead of inflation expectations There is a scarcity of fresh information today. The JOLTS job openings for September and the preliminary November consumer mood index from the University of Michigan will be released later in the day. The results of the JOLTS survey should demonstrate that supply of workets continues to be the most pressing […]

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Post-Brexit trade frictions between Britain and the European Union never completely went away but seemed to have flared up again lately. Unsurprisingly, the dispute is around the complicated Northern Ireland protocol, meaning the matter could drag on for months and potentially not be resolved without escalating into something much bigger first. If the spat leads […]

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Markets The looming Fed meeting tonight keeps markets sidelined for the time being. In all fairness, there wasn’t much else to guide trading in the run-up to Powell’s second policy meeting of the year anyway. The economic calendar only starts heating up from tomorrow onwards. Details on US president Biden’s ‘American Families Plan’ were released […]

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European equities head higher European bourses are on the rise rounding off an upbeat week. Following all-time highs on Wall Street overnight and record Chinese quarterly economic expansion, stocks across Europe appear well supported heading towards the weekend. Signs of strong economic recoveries in the world’s two largest economies is buoying demand for riskier assets […]

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The COVID-19 virus continues to pose significant problems for western countries amid new mutations. Cases are rising in many European countries, notably Eastern Europe. Vaccines seems to be effective against the mutations however. On the vaccinations process, China this week said that it aims to have 40% of population vaccinated by end of July, while in […]

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Wednesday was filled with different news backgrounds, both economic and political. ISM Service sector growth was the slowest over nine months. The European Union has announced that it will file a lawsuit against the UK for violating the terms of the Brexit deal. UK Treasury Secretary Rishi Sunak outlined his program of economic assistance, but […]

The post The Service Sector In The US Has Slowed Down. Tensions Between The EU And The UK Concerning The Brexit Deal Have Escalated appeared first on Action Forex.

Key points Short-term headwinds strengthen as COVID infections stay high The beginning of the vaccine roll-out provides brighter prospects for the future We see pent-up demand in the household sector where savings rates are still elevated Downside risk factors have come down following the UK-EU Brexit deal and lower risk of new US-China trade war […]

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Stock markets continue to grow amid approval of the Covid-19 vaccine developed by AstraZeneca and the University of Oxford. This move will help the UK to increase vaccinations from Monday next week. Another positive news is the support for British Prime Minister Boris Johnson from the Conservative Party. On Tuesday, party officials said that the […]

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The FTSE 100 soared on the first day of trading after the UK and the European Union reached a Brexit deal on Thursday. The index rose by more than 2.70%, outperforming all other European bourses. Most companies in the index rose. Banks, however, dropped sharply because the deal left the important issue of financial services […]

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Britain and the European Union have just agreed on a post-Brexit relationship – including, of course, on trade – ending more than four years of uncertainty and political drama. However, with negotiators having less than 12 months to strike a deal, it was never going to be possible to achieve anything more than a bare […]

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Markets go quiet in thin holiday trading after US stimulus and Brexit hurdles cleared Pressure on the US Senate after House votes to increase stimulus checks Wall Street sets another record, Nikkei soars, London stocks play catch up Dollar on the backfoot again after rebound falters, pound pares losses Markets in holiday calm but stimulus […]

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