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  
The precious metal has broken out

The precious metal has broken out from its descending wedge around 1331.00 and moved higher to create a lower high at 1361.80.The price then...

All Focus on US inflation data

The USD has weakened further overnight as the market awaits important US Data at 13:30 GMT. USDJPY broke down under 107.000, while...

Central Bank speakers start a quiet week

UK MPC Member Vlieghe spoke at the Resolution Foundation in London. Some of the comments made were: If there is less credit headwind to the UK economy...


Equities Face a Nervous Session

The global equity markets are bracing themselves for a stormy closing session this week, as data from Thomson Reuters Lipper unit shows US fund...

Super Thursday for the Bank of England

The Bank of England is expected to largely proceed as normal today on ‘Super Thursday’ when the central bank releases its policy decision and statement...

US Nonfarm Payrolls Today

Today is Non-farm Payrolls day in the US. This data release is generally one of the most important of the month, being a leading indicator of consumer...


Australian Dollar drops after soft data

The Australian dollar eased on Thursday following weaker-than-expected economic data. The Australian Dollar took an initial knock on Wednesday on...

Trump Supports a Strong Dollar

Markets have had a volatile session this week thanks to various US officials and yesterday was no exception, with President Trump speaking in Davos...

A Weaker Dollar is Good for the US

Yesterday, Senior US Officials took the lead from their President and made clear the US position on Trade. Commerce Secretary Wilbur Ross...

  


Share: