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5 Oct 2015
Global market sentiment off to a buoyant start – TDS
FXStreet (Delhi) – Ned Rumpeltin, European Head of Currency Strategy at TD Securities, notes that market sentiment is off to a buoyant start this week as investors continue to push out expectations for the first Fed rate hike after Friday’s dire US employment report.
Key Quotes
“Rates markets are pricing in only a 29.8% probability that the first hike could come in December, down from nearly 40% ahead of the payrolls release. Global equities are extending their gains after Friday’s reversal higher.”
“Not surprisingly, the USD is also weaker today, losing ground against nearly all major currencies. Sterling remains slightly stronger despite the weakest Services PMI reading in over two years.”
“Indeed, within the G10 complex, only the JPY is underperforming (-0.2%), but USDJPY spot remains confined to a very tight range ahead of this week’s BoJ policy meeting. There, we do not expect the BoJ to deliver additional easing and see better scope for USDJPY to have its next sustained move to the downside as US growth has slowed and the case for a stronger USD has deteriorated more generally.”
Key Quotes
“Rates markets are pricing in only a 29.8% probability that the first hike could come in December, down from nearly 40% ahead of the payrolls release. Global equities are extending their gains after Friday’s reversal higher.”
“Not surprisingly, the USD is also weaker today, losing ground against nearly all major currencies. Sterling remains slightly stronger despite the weakest Services PMI reading in over two years.”
“Indeed, within the G10 complex, only the JPY is underperforming (-0.2%), but USDJPY spot remains confined to a very tight range ahead of this week’s BoJ policy meeting. There, we do not expect the BoJ to deliver additional easing and see better scope for USDJPY to have its next sustained move to the downside as US growth has slowed and the case for a stronger USD has deteriorated more generally.”