Market News

Last week’s Paris terrorist attack continues to haunt the financial markets

Asian shares dipped on Friday, in anticipation of key U.S. employment data later in the session that was expected to advance the case for a Federal Reserve interest rate hike as early as next month.

For the second consecutive day, the US Dollar has surged, especially against the common currency Euro, amid growing speculation of monetary policy divergence.

Tuesday's Asian session saw a sharp reversal of Monday's losses, with MSCI Asia-Pacific shares rising 1.7 percent, bouncing up from Monday's 6-week low.

After last Friday’s attacks in Paris, the Euro is coming under heavy sell pressure and earlier struck a 6½ month trough versus the Japanese Yen.

The Euro traded markedly lower during Asian trading on Monday, the third day after in Paris left the country, and the world, reeling.

The European Central Bank surprised and disappointed the market today, as the President Mario Draghi announced a QE extension program and deposit rate cut of 0.10%.

This week should be more newsworthy than last week, with key Central Bank events due concerning the USD, the JPY and the AUD.Get the economic and political calendar for the popular currencies for the week of November 16, 2015.

The question of whether the Fed will raise interest rates by the end of the year is still very much in doubt. But inflation numbers to be reported on Tuesday could provide the final clues as to whether the Fed’s first rate increase in nearly a decade will actually take place.

Oil prices continued their decline Friday, heading towards below $42.00 a barrel and hitting the lowest they’ve been since August. Asian stocks followed Wall Street down in early morning trading, as prices of commodities headed southward.

Though markets were disappointed when Mario Draghi spoke at the Open Forum in London yesterday, it was a different story today. In testimony given to the European parliament, Draghi pointedly said that the Euro’s appreciation since May was viewed by the ECB as a key component of the ECB’s inflation outlook.

Asian shares slipped lower early Thursday, with energy shares leading declines. Wall Street showed reserved returns Wednesday with limited trading due to the U.S. Veterans Day holiday.

Though every FX player believes they know what the head of the European Central Bank might do next, it doesn’t prevent wariness of a surprise.

The news out of New Zealand is good these days. The country’s Financial Stability Report November 2015 has just been released and the overall picture is positive.

The US Dollar Index edged higher today as it appears the divergence between the Federal Reserve Bank and its major peers will shortly widen.