Risk currencies stabilise

5 January, 2016

It was an uncomfortable start to the New Year in many respects, but it’s not possible to pin it down to one particular thing, rather it was a confluence of factors that came to set a risk averse tone across many markets. This was most evident in stocks and especially in Asian, given the gyrations seen in China and the contagion elsewhere. The S&P500 managed to rally into the close, which allowed for a steadier start for Asian stocks, but it was hardly plain sailing. If we look more specifically at currencies, then there was some unwind of the risk aversion moves that were being seen yesterday, with USDJPY moving up from the 118.70 low made during yesterday’s session. The Aussie also managed a modest recovery to the 0.72 level, whilst EURUSD has retained the softer tone gained in the latter half of yesterday’s European session, currently holding just above the 1.08 level.

For today, the main focus on the data calendar will be the release of the latest CPI data for the Eurozone, which is expected to nudge up to 0.3% YoY on the headline rate, with the core rate seen rising to 1.0% (from 0.9%). Headline rates are expected to move higher over the coming few months as the effect of the sharp decline in energy prices 12 months ago falls out of the calculation. Despite the rising tensions between Saudi Arabia and Iran, oil prices ended yesterday’s session lower, but the story is worth keeping an eye on. Naturally, the US employment report on Friday retains the attention of markets this week.


Source link  
CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...

No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...


OPEC Extends Output Cuts

On Thursday, OPEC (Organization of Petroleum Exporters) and non-OPEC producers led by Russia agreed to keep output cuts until the end of 2018...

US Economy Expands Faster Than Predicted

Data released on Wednesday showed that the US economy expanded at its quickest pace since 2014 in Q3. The US Commerce Department said that...

Political Turmoil in Germany Hurts EUR

The EUR lost ground against many of its peers on Monday on news that Chancellor Angel Merkel’s efforts to form a coalition government had collapsed...


USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

Positive data negated by tax plan opposition

The US Labor Department released data on Wednesday showing the consumer price index edged up by 0.1% in October after climbing by 0.5%...

Data Boosts EUR Can CPI Boost USD?

EUR received a boost on Tuesday, as data from Destatis showed German Preliminary GDP climbed to 0.8% in Q3, beating forecasts of 0.6%. In addition...

  


Share: