RBA Shocks Market With Rate Cut & QE
The outbreak of COVID-19 has prompted a co-ordinated response from global central banks not seen since the GFC. With all central banks in the G10 space having now cut rates in a bid to help provide economic relief during the mas disruption caused by the virus, the RBA has joined forces with the Fed, […]
Surprise Rate Cut From Fed – More To Come?
Fed Cuts Rates by 0.5% In a worrying display of serious the threat of COVID-19 is to the global economy, the US Federal Reserve took the historic step yesterday of announcing an unscheduled rate cut. The Fed announced a surprise .50% rate cut, the first-time rates have been cut outside of the FOMC since December […]
NZD Higher As RBNZ Defies Market Expectations
RBNZ Bucks The Trend At a time when global central banks are increasingly guiding markets and signalling forthcoming moves, the RBNZ is increasingly become a difficult bank to anticipate. In August, the RBNZ caught traders off-guard when, against expectations of a near-certain 25 basis point rate cut, they lowered rates by a huge 50 basis […]
Precious Metals Monday 21-10-2019
Gold Gold has seen relatively subdued price action over recent sessions despite the big moves seen in USD. The recent patch of bad data out of the US continued last week with a disappointing Retail Sales number. Retail Sales were in negative territory over September, echoing the weakness seen in other key readings such as […]
FOMC Minutes Point To Further Cuts
FOMC Minutes Highlight Downside Risks USD saw heavy selling in reaction to the release of the September FOMC meeting minutes. Given that the Fed’s decision to reduce rates by a further 25 basis points saw three voting members dissenting, the risks of less-dovish minutes were elevated. However, although the Fed was split over the decision […]
Will The Fed Cut Rates In October?
October Rate Cut Risks The September FOMC meeting was a disappointing meeting for USD bears. The Fed reduced its headline rate by a further 25 basis points though USD downside was offset by news that three members dissented against the cut. Additionally, the dot plot forecasts failed to show a clear path forward. As such, […]
The IndeX Files 08-10-2019
Brexit & Trade Negotiations Driving Risk Sentiment Global benchmark indices have commenced the week’s trading with a mostly positive tone as attention shifts to the upcoming US – Sino trade negotiations. High-level officials from two leading global economies are due to meet in Washington on the 10th for the next round of negotiations. Over recent […]
RBNZ Holds Rates But Still Room For Further Easing
Rates Held At Record Lows With the RBNZ having unexpectedly cut rates by .50% at its last meeting, there was a lingering sense of caution coming into yesterday’s meeting. While the bank was not expected to cut rates again, there was certainly the sense that the market was not looking to be caught off guard […]