-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Close
Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessTrending Top 5
Market News Topics
August 01, 2024 16:55 GMT
Weakness for Equities Boosts Greenback, GBP Pressured Post BOE Cut
FOREX
- A particularly soft ISM manufacturing report in the US prompted an extension lower for US yields and notable pressure on risk/equities across Thursday’s session. The employment complement saw a very substantial miss: 43.4 (cons 49.2) after 49.3, the lowest since Jul 2020. Pre-pandemic, that’s the lowest since 2009 and has likely exacerbated the risk off flows.
- Despite the impressive moves in rates and equities, the USD index stands just 0.25% in the green, with the Swiss Franc outperforming on the safe haven demand. EURCHF sits 0.90% in the red at the lowest level since February, just ahead of the 0.94 handle.
- The Yen’s daily price adjustment is masked by an extremely volatile overnight session, where the pair fell to a four-month low of 148.51, closely matching touted support, the 61.8% retracement of the Dec 28 ‘23 - Jul 3 upleg.
- Subsequently the pair bounced very firmly, rising as high as 150.89 and so the soft US data and late equity weakness has only brought the pair back to flat, residing just below 1.5000 ahead of the APAC crossover.
- GBP sits lower on the session, consolidating an early move lower ahead of the Bank of England. The BOE's Monetary Policy Committee delivered a 25 basis point rate cut at its August meeting on the narrowest of margins, a five-to-four vote in favour, with even some of those who voted for it saying that their decision was "finely balanced."
- Despite price action remaining choppy for sterling in the aftermath of the decision, GBPUSD sits 0.70% lower on the session, with the poorer risk sentiment likely weighing.
- Note that support has been established just below the 50-day EMA - at 1.2792 - and a trendline at 1.2752, drawn from the Apr 22 low. A clear break of these points would suggest scope for an extension towards the 1.2700. Initial resistance to watch is at 1.2863, today’s high.
- For the cross, EURGBP (+0.40%) has narrowed in on firm resistance which is seen at 0.8458, the 50-day EMA.
- All focus turns to Friday’s US employment report where nonfarm payrolls are expected to moderate further in July. Swiss CPI will also cross during the European session.
To read the full story
Close
Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok