This afternoon markets are fragmented and have the feel of someone lost looking for guidance.
Will the release of the minutes from the last FOMC meeting provide this stability? We’ll know soon enough at 19.00 London.
The day started well with strong Australian retail sales & building approvals data, followed by better than expected Japanese cash earnings.
The European session offered no cheer though with German employment change disappointing and UK net lending to individuals coming in well below estimates.
The North American session has seen the glass swing back to being half full with Canadian GDP coming out in line with estimates and US consumer confidence landing better than expected. The Case-Schiller house price index provided some good news on the US housing market for the first time in months, though as many analysts point out, the data is 2 months behind. Finally, Chicago PMI came in below estimates.
So a lot of data out today – How have markets reacted?
Markets are mixed this afternoon with stock markets managing to drag themselves up from the depths of a disappointing start and actually trade in the black for the day.
Forex markets are fragmented with a few dominant trends.
Swiss franc dominance
Elsewhere in the financial markets, the yen is certainly strong today, but there’s no doubting that the hot money is streaming into the Swiss franc.
The EUR/CHF is down 0.82% to a new record low of 1.2870. The USD/CHF is down 1.16% and the GBP/CHF is down a huge 1.88%.
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Article by Dave Evans, also see Financial Fixed Odds Trading.
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