IronFX Daily Commentary by Sakis Paraskevov | 26/11/2015
November 26, 2015 9:47 am
Main points for Today • SNB’s Jordan repeats that CHF is overvalued • Swiss National Bank Chairman Thomas Jordan said in an interview that CHF remains overvalued, reaffirming the Bank’s readiness to intervene in the markets if it becomes necessary. • He said that there is no limit on size of SNB’s balance sheet and that the current negative interest rates “have worked very well”. • With less than a week ahead of the ECB’s policy meeting, the likelihood for another “surprise” by the SNB is high. They could cut rates deeper into the negative territory to weaken CHF. • Australian capital expenditure for Q3 fell more than expected • AUD tumbled after capital expenditure fell much steeper than market expectations. • This was the fourth straight decline and suggests that the rebalance from the mining sector remains challenging for the nation. • Added to the sluggish growth in China and the falling iron ore prices, it makes it more likely that the RBA will have to cut rates again. However, given the recent comments by the RBA Governor Glenn Stevens that the markets should “chill out” on prospects for another rate cut, no action is expected at their Dec. meeting. • Today: • Eurozone: The M3 money supply for October. The growth rate is expected to remain unchanged, however if it does the 3-month moving average will decline slightly. Usually not a major market mover. • Germany: The Gfk consumer confidence for December is due to be released. The forecast is for the figure to decline, and if met, will be the 5th consecutive month of consumer confidence declining. • US: Markets will be closed for the Thanksgiving holiday. • Speakers: No speakers on the agenda.
Main points for Today
• SNB’s Jordan repeats that CHF is overvalued
• Swiss National Bank Chairman Thomas Jordan said in an interview that CHF remains overvalued, reaffirming the Bank’s readiness to intervene in the markets if it becomes necessary.
• He said that there is no limit on size of SNB’s balance sheet and that the current negative interest rates “have worked very well”.
• With less than a week ahead of the ECB’s policy meeting, the likelihood for another “surprise” by the SNB is high. They could cut rates deeper into the negative territory to weaken CHF.
• Australian capital expenditure for Q3 fell more than expected
• AUD tumbled after capital expenditure fell much steeper than market expectations.
• This was the fourth straight decline and suggests that the rebalance from the mining sector remains challenging for the nation.
• Added to the sluggish growth in China and the falling iron ore prices, it makes it more likely that the RBA will have to cut rates again. However, given the recent comments by the RBA Governor Glenn Stevens that the markets should “chill out” on prospects for another rate cut, no action is expected at their Dec. meeting.
• Today:
• Eurozone: The M3 money supply for October. The growth rate is expected to remain unchanged, however if it does the 3-month moving average will decline slightly. Usually not a major market mover.
• Germany: The Gfk consumer confidence for December is due to be released. The forecast is for the figure to decline, and if met, will be the 5th consecutive month of consumer confidence declining.
• US: Markets will be closed for the Thanksgiving holiday.
• Speakers: No speakers on the agenda.
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