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    MORNING BELL: September rate hike in sight

    Last week was the best week for the British pound in the last six years. However the sterling started this week lower as investors are expecting the Bank of England meeting minutes on Wednesday. Greece reopened its banks on Monday for the first time in three weeks, of course with capital controls still in place in order to monitor the withdrawals pace. The Greek stock market remains closed until further notice. The euro climbed up around 0.1% to $1.08339 after reaching its lowest point since mid-April on Monday.

    The Reserve Bank of Australia stated early on Tuesday in its meeting minutes that keeping interest rates at record lows of 2% was the best approach, indicating a steady prospect for its monetary policy. Furthermore, Australia’s central bank stated that a lower Australian dollar was necessary to boost balanced growth. The currency dropped to six-year lows against the greenback yesterday reaching $0.73263. However, it managed to have a much more modest fall versus a number of number of other currencies.

    The US dollar is holding steady near its recent highs and was last trading close to five-week highs against the Japanese yen after Fed’s Bullard raised the expectations for a September rate hike. Gold on the other hand dropped to a five year low of $1072.36 early on Monday, affected by VIX’s fall, and the rise in US equities. These signals indicated that the market has calmed down, especially now that Greece is on a more stable status.

     

     

     

     


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