Today's Highlights

  • US rate cut a distinct possibility

  • Eurozone inflation picking up


Current Market Overview

US rate cut a distinct possibility

Two central bankers were in the news yesterday. The US Federal Reserve released its meeting minutes showing a clear propensity to lower their base rate amongst the members of the Open Market Committee. The US Dollar weakened a little on the news but is still down at $1.2540 against the Pound and $1.1270 against the Euro. We will have speeches from a number of FOMC members later today which ought to reinforce the message from the meeting.

The Bank of England publishes its financial stability report this morning. That sounds kind of euphemistic in the current environment where everything is anything but stable. It’ll make interesting reading though.

Eurozone inflation picking up

This morning brought a rise in French and German inflation. Fundamentally that is a positive for the Eurozone but it isn’t a local phenomenon. We are seeing rising inflation at the producer and consumer level in areas around the globe, so it is unlikely to prompt a rate hike from the European Central Bank any time soon. There will be comment from some members of the ECB through the day to keep us ‘informed’.

This afternoon will bring US inflation and initial jobless claims as well as the 2nd day of the Federal reserve Chairman’s testimony to the Joint Economic Committee, in Washington DC. He will say the same as he said yesterday.

Later this evening we will hear from yet another central banker; the Assistant governor of the Reserve Bank of Australia and then the purchasing manager’s index from New Zealand. That should keep the late traders busy.


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: risk aversion could send it sub-1.1180

EUR/USD capped by a critical Fibonacci resistance for two weeks in-a-row. The American dollar has closed the week on a high note as hopes for significant rate cuts faded.


GBP/USD: bears to retake control on a break below 1.2475

Renewed demand for the greenback has resulted in the GBP/USD pair giving back half of its Thursday’s gains at the end of the week, with the pair closing it just above the 1.2500 figure.


USD/JPY: bearish case firmer once below 107.20

The USD/JPY pair flirted with the 108.00 level by the end of the week on renewed demand for the greenback but retreated sharply from the level to settle at around 107.70.


Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News