In the wake of the Non-farm Payrolls report, traders continue to weigh up the expectations of when the Federal Open Market Committee (FOMC) is likely to finally make a move on interest rates. Every announcement of key US economic data is being scrutinized for how it will influence on whether it will be September, December or perhaps even pushed back into 2016. This is impacting across markets however, bond markets and forex markets take the full force of this sentiment. The other factor that traders are increasingly having to cope with is that Chinese economic data continues to deteriorate and this is impacting across commodity trades. Falling prices of commodities is deflationary and this not only impacts on currencies, but also equity markets. Traders have an awful lot to ponder as they come back to their desks after the summer holidays.
Read Richard’s Market Overview Report “China and expectations over a Fed rate hike continue to dominate trading sentiment”.