Geo-political tensions increase

January 6, 2016

It is the yen that has really run away to the upside so far this week (and year), but at the other end of the scale, it’s mostly the commodity currencies that have struggled on the majors. The CAD is of particular note as USDCAD threatens a sustained push above the 1.40 level. A further easing from the Bank of Canada cannot be ruled out and it is divergence in underlying interest rate policy that is a very powerful fundamental driver of currency trends. For this reason, the Canadian jobs data this Friday could eclipse the US release for its significance to currency markets. Overnight, we’ve seen a further rise in the USDCNY reference rate and modest recovery in the stock market in China, this despite the latest Caixin PMI services data falling short of expectations at 50.2 (from 51.2). Geo-political tensions remain high with the news that North Korea tested its first Hydrogen bomb overnight. Naturally the Korean won added to yesterday’s weakness, pushing up just shy of the 1200 level.

For today, markets will be attempting to squeeze some juice out of the latest FOMC minutes from the December meeting. Given that they raised rates, the main focus will be any fresh indications of what will decide further policy moves. The accompanying statement was fairly detailed on this front and given the accompanying press conference, the risk is low that the minutes throw a curve-ball that will impact markets, but investors will be on their guard nonetheless. Before the FOMC minutes, we have final PMI data in the Eurozone at 09:00 GMT, with UK services data at 09:30 GMT. There is also services PMI data in the US and durable goods data.

Publication source
FxPro information  FxPro reviews

January 20, 2017
Advance in inflation across the Eurozone
Euro holds gains against the US Dollar ahead of the ECB rate decision, as majority of economists expect no major updates in the policy, while investors will be taking stock of Draghi rhetoric’s to foresee the timeframe of the next big move by the policymakers...
January 20, 2017
US oil inventory draw gave a temporally support for oil prices
Oil prices remained in red figures after Wednesday's bearish acceleration. Brent a little changed on the day and remained prone to more weakness on Thursday. The benchmark stayed neutral around 54.50 dollars per barrel flirting with the level during the European session...
January 20, 2017
Pound gives up gains
The British pound has pulled back sharply today after making its biggest 1day gain in nearly 20 years’ yesterday, as fears once again crept in about where Brexit will lead to...

Trade360 Rating
Grand Capital Rating
FXCM Rating
HotForex Rating
FBS Rating
Z.com Trade Rating

TopOption Rating
Empire Option Rating
GTOptions Rating
First Binary Option Service Rating
Migesco Rating
Dragon Options Rating