Last week we saw large swings as a large risk off move rocked all markets. The US employment NFP Numbers came in weaker than expected which led to a large sell off. This led to a global sell off in equities which could move into Asia on Monday.
The Fed is now coming under increasing pressure to make their move and lower interest rates. Speculation is growing that they will not wait till the next meeting but will in fact make a rate cut in the next 7 – 10 days. Post payrolls the evidence suggests that the US economy is heading towards rescission or even a hard landing which could further perpetuate risk off trading.
JPY was the clear winner here as safe haven coupled with a decision to raise interest rates. Additionally, the BoJ announced plans to reduce Government Bond Purchases. This led the Yen to a very strong rally gaining almost 5%.
Despite the turmoil both GBP and EUR had a mid-range week. GBP lost post BoE and its decision to cut rates for the first time. The dovish comments will put any upside lid on the GBP. conversely EUR gained on the week with a stronger than expected GDP and CPI numbers lifting the EUR.
Oil was under pressure all week as general risk assets fell. The WTI fell 3% which is its 4th losing week on the trot.
The week ahead will volatile. The spill over from Friday into Asia could lead to further risk off trading.
We have RBA interest rates and global PMI numbers.
Weekly Majors’ Market Performance
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The post Recession fears rise pressure on the Fed? first appeared on trademakers.
The post Recession fears rise pressure on the Fed? first appeared on JP Fund Services.
The post Recession fears rise pressure on the Fed? appeared first on JP Fund Services.
