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To raise interest rates after the dollar temporarily adjust inventory down to oil long climb

By Wesley Lane,2015-11-06 05:52
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To raise interest rates after the dollar temporarily adjust inventory down to oil long climb

    To raise interest rates after the dollar temporarily

    adjust inventory down to oil long climb

    On Tuesday (December 22) as the Christmas holiday is coming, investors away from the city, watching, adjust the position.In the last weekThe federal reserveRaising interest rates, the market is still on after large holdingsThe dollarLong position adjustment, and markets that the fed next yearIncreases in interest ratesSpeed slower than previously expected, so the dollar continues to fall in Tuesday's trading.The price of crude oil, vacation makes the market to ease the imbalance between supply and demand concerns, coupled with API released late in New York crude oil inventoriesdataDown, which makesThe United StatesOut of 11 years after the continuous drop in oil prices low, eventually closed up slightly.

    Specific markets, the dollar index dropped down to 98 mark, mainly because of the market that the fed to raise interest rates next year frequency and amplitude may be less than the fed had expected, investors adjusted positions;The euroHigh against the dollar rebounded climbed 4, mainly because ofThe European central bank (ECB)Asset purchases during the Christmas holidays pause, think that the European central bank and the market short-term will not further easing;Gold prices rose for the two soft in the future, traders adjust positions before Christmas;Oil from the 11-year lows, supported by API crude oil inventories fell, but the outlook remains gloomy.

    The dollar index dropped down to 98 mark, mainly because of the market that the fed to raise interest rates next year frequency and amplitude may be not as good as the fed had expected, investors rebalancing.In addition, after the federal reserve to raise interest rates last week decision-making, market of profit-taking after long dollar positions, the decline in the dollar.Mixed economic data released on the day in the United States, the impact on the market is limited.

    The Pacific Ocean investment management co., PIMCO is pointed out that the fed will be before the end of 2017 will remain very loose policy, the FOMC increases in 2016 and 2017 May be less than 4 times, raising interest rates does not mean that U.S. economic expansion end, investors may need to reevaluate the FOMC rate expectations of the path.

    The U.S. economic data overall performance were mixed, with the American in the third quarter GDP, the attention of the final value and Richmond fed manufacturing index are good, but existing home sales was significantly less than expected, another FHFA index performance in line with expectations.The whole mixed data exacerbated the fluctuations in the dollar, but did not pose much impact to the dollar trend.

    The United States, according to the specific data in real GDP in the third quarter quarter final value 2.0%, 1.9%, initial value 2.1%;The United States in the third quarter GDP deflator final value 1.3%, 1.3%, 1.3% initial value.Critics said the United States in the third quarter GDP final value better than expected, showed quite healthy economic growth in the third quarter, mainly because of 3% strong

    consumer demand growth, and business spending increases offset the excess inventory pressure;Although American companies are trying to cut inventories, but high inventory will be a liability in the fourth quarter is expected to economic growth.

    The dollar index shows an hour

    The December Richmond fed manufacturing index 6, expected - 1, before the value.December analysts say that although the Richmond fed manufacturing index significantly better than expected, but from a macro perspective, the U.S. manufacturing sector outlook remains bleak, announced last week the United States on November industrial output fell 0.6%, refresh the biggest monthly decline since March 2012, November ISM manufacturing PMI also recorded a contraction.

    Performance was less than expected, according to data from the annual total sales of previously owned homes in November 4.76 million, the biggest monthly decline since July of 2010, to the lowest levels since the nineteen months recently, expected 5.34 million, value before 5.32 million.On November U.S. existing home sales total annualised rate of 10.5%, is expected to 0.4%, the former value to 4.1%.

    Analysis pointed out that the United States on November existing-home sales growth fall to the lowest level in 19 months, the main reason is that housing prices rising far faster than residents' wage growth, and inventory tightened;On the other hand, the real estate industry needs to adapt to the new federal regulations about end housing sales, to some extent this inhibition potential buyers to buy houses.

    Another in line with expectations of the United States, according to the United States in October FHFA index rate of 0.5%, 0.5%, 0.8% before.

    On the 4th of the euro against the dollar rebounded climbed high, mainly because of the European central bank asset purchases in suspended during the Christmas holidays, and think that the European central bank's short-term market

    will not further easing.In addition, the market forSpainPolitical concerns prompted some safe-haven buying of financing currency to buy back.

    Overall size is 1.5 trillion euro, European central bank bond buying program will be suspended until January 4, which makes investors lost a large support, while at the end of the market liquidity dried up, and Spanish elections did not produce independent to form a political party, have led to price fluctuations.

    As the market into the Christmas holidays, the European central bank's purchases have been reduced.On Monday, according to data from the bank bought 11.18 billion euros of public assets last week, two weeks before the 13.6 billion and 16.46 billion euros respectively.Although the purchase action had slowed during the summer vacation, but this Christmas is the first time since march to start the program completely ceased.

    Political unrest or in 2016The euro zoneThe nascent economic recovery pose a risk.Spain will be in the political turmoil in recent weeks.The country's prime minister Rajoy (Mariano Rajoy?) belongs to the centre-right people's party (PP) failed to obtain an absolute majority in the election, but the left party is unlikely to raise enough seats to form a coalition government.The election results will herald a for a few weeks to form the government of tough negotiations.

    The euro against the dollar figure shows an hour