World First Morning Update 7th August: GBPEUR hits 1m low as Draghi rally extends

The “Draghi rally” following Thursday’s initial disappointment continued yesterday with GBPEUR falling to a one-month low and EURUSD pressuring the 1.24s. This has been driven by falling yields on European periphery debt and in particular the short-term debt of Spain.   We look at the shorter-term money because it gives us a picture of how [...]

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World First Morning Update 6th August: Euro continues to fly high

www.youtube.com/watch?v=Rvh08JsvVm8 Financial markets closed out the week strongly on Friday with a green sweep across the board for all the big European and US markets. Eurozone confidence was more upbeat and the US had all but closed the door on QE for the near future, settling nerves in the short term. Similarly to the way [...]

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World First Morning Update 3rd August: Draghi crushes expectations of immediate help

Yesterday’s ECB decision and press conference was largely an exercise in expectation management; a lesson that could have been given last week but the binary nature of today’s markets put paid to that.   Prices in the past week have been bid higher on the basis of Mario Draghi’s assertion that the ECB would do [...]

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World First Morning Update 2nd August: Fed disappoints before Draghi takes the stage

For those market participants expecting some form of movement from the Federal Reserve last night, it was as disappointing as the Australian showing in the Olympic swimming pool. The FOMC said that it will be keeping interest rates low until late 2014 and that “The committee will closely monitor incoming information on economic and financial [...]

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World First Morning Update 1st August: Chinese PMI shades risk rally before Fed decision

The week really starts in earnest today following two days of relative sideways movements as a result of poor liquidity, and a general lack of commitment on the part of traders to get involved in things before the data calendar gets going.   Overnight the general market warmth, that has caused EURUSD and GBPUSD to [...]

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World First Morning Update 31st July: EU confidence slips further ahead of US measure

Yesterday’s markets were typical of the idle days of summer with volume particularly low and most traders more keen to catch up on the goings on at the Olympic Games than on their dealing screens. Liquidity will be low through the next couple of weeks but with the event risk towards the end of the [...]

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World First Morning Update 30th July: Central bank week starts quietly

And so starts another important week in the life of the European, and world, economies. We are stuffed full of central bank news with markets hoping that the rally caused by Draghi’s comments late last week will be continued by some form of monetary policy easing.   Our thoughts are that the Fed and the [...]

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World First Morning Update 27th July: Draghi challenges markets with talk

Comments from ECB Chair Mario Draghi gave asset prices a welcome boost yesterday with the euro rallying, equities higher and peripheral bonds coming back from recent extreme levels. The speech sounded like a warning to the markets that he, and the resolve of the ECB should not be tested.   He commented that the “within [...]

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World First Morning Update 26th July: UK GDP disappoints for 3rd successive quarter

httpvh://www.youtube.com/watch?v=bMHA28Dqk88     To the comments, Author: jeremy e64c42cdda509545a9ee0aefaca45a8f (10.3.0.9) To the comments, Author: jeremy

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