Macro events & news for January 05, 2016

5 January, 2016

Macro events & news for January 05, 2016

FX News Today

The dollar was mostly higher with a bit of a safe-haven money flowing into the USD as geopolitical tensions and a slowdown in China’s economic expansion on Monday, contributed to the 7% sell off in Asian stock markets at the start of the new year. The global stock market sell-off spill over into the European and the U.S. stock markets with U.S, markets preforming better than European equities. However, in overnight Tuesday trading, Chinese stocks traded back from session lows, after the Shanghai Comp tumbled over 3% at the open before reversing back into the green, as officials came in to inject cash into the banking system via a $20 bln open market reverse repo operation to ensure liquidity while also reportedly intervening to support the yuan.

Yesterday, The EURUSD fell to one-month lows near 1.0780 before buyers moved in to support prices; the USDJPY broke below the 118 handle before rallying to 119.70. Meanwhile, the GBP touched close to multi-month lows of 1.4660, and the USDCAD pulled back early on higher oil prices, however, the USDCAD rallied back over 1.3980 when crude Oil prices failed to retain gains.

Monday U.S. data was not uplifting, as both manufacturing ISM and construction spending both missed expectations. The U.S. calendar is thin today, featuring December auto sales and weekly chain store data. The Canadian calendar has industrial product price index for November while the European calendar has U.K. Construction PMI, Italy HICP, Spain unemployment.

Main Macro Events Today

EUR German Unemployment: Yesterday’s PMI readings confirmed that growth is broadening and the improvement is also helping the labor market across the Eurozone and analyst are looking for a fresh decline in German jobless numbers of 5K (median -8K), which should leave the December jobless rate steady at a very low 6.3%.

EUR Preliminary December Inflation: Preliminary December inflation numbers for Italy and the Eurozone. The Spanish reading last week came in higher than expected, while the German HICP, released yesterday, unexpectedly fell.

GBP PMI Construction: Analyst forecast a 56.0 reading up from the previous 55.3.


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FTSE 100 futures are slightly higher

Asian stock markets are narrowly mixed and fluctuating at high levels, as trading volumes are low and investors await the Fed decision...

Markets have come quite a way up

Both central banks are widely expected to keep policy on hold, but the BoE’s statement in particular will be watched carefully...

Dollar traded softer vs many currencies

European Outlook: Asian stock markets mostly moved higher in quiet trade, after Wall Street managed to close with slight gains...


Oil prices are holding above USD 49

Yesterday there was a relatively dovish view from the nonvoting president, Fed Bullard, who continues to twist between a hawkish...

Dollar majors playing narrow ranges

EUR-USD held in the upper 1.18s, below the 31-month high logged midweek at 1.1910, and Cable settled in the mid 1.31s, consolidating the sharp losses...

UK100 is at 0.62% gain for the day

UK preliminary Q2 GDP came on the nose at 0.3% q/q and 1.7% y/y, up from Q1’s 0.2% in the case of the q/q figure and down from Q1’s 2.0% y/y...


The economic week ahead

Both the ECB and BoJ met expectations as each left policy unchanged last week, though the outlook for ECB remains under the dark cloud of future QE tapering...

UK consumer finally falters EURGBP to rise

One year on from Brexit and I was wrong about a recession in the UK by the end of 2016. A little overreaction in my immediate...

ASX tanked yesterday, oil bounced back

May existing home sales bounce to a 5.62 mln rate trimmed the April drop to 5.56 mln from a 5.70 mln cycle-high in March...

  


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