12 January, 2016
FX News Today
Oil prices are pushing 12-year lows, trading below $31 bbl at the time of writing, as concerns about the global economy push traders into risk-off mode.
Commodity related currencies are under-performing the USD, with the AUD, NZD, and CAD all under pressure.
The U.S. Dow Jones stock markets closed higher on Monday, suggesting that the recent stock market sell off is starting to stabilize.
The EUR attempted to rally back over 1.0900, however failed to keep gains and fell back into the mid 1.08’s with the EURUSD lacking any meaningful direction without any market moving European economic data.
The economic calendar for today does not have any heavy data release on tap, apart from the GBP Industrial Production and the USD November JOLTS job opening survey.
Main Macro Events Today
• GBP U.K. November Industrial Production: Analyst expected a rise of 0.1% m/m, actual missed , and came in lower at -0.4%.
• USD Fed’s Stanley Fischer to Speak: No commentary
• EUR ECB speak from Praet and Lautenschlaeger: On January 6, 2016 Praet said the following “the ECB stands ready to take all measures that are necessary to bring inflation to 2%. If you print enough money you will always get inflation. Always”. “But if oil and commodities prices tumble, it is more difficult to allow inflation to rise. If a whole series of such factors occur, you can’t do anything other than somewhat postpone the data on which you seek to reach the higher rate of inflation”. “The emergence of bubbles is a justified concern”.
Nikkei gained 1.09% after a strong close on Wall Street and with the earnings season starting to overshadow lingering trade jitters at least for now. A weaker...
U.S. trade tariffs tightened market conditions. Coeure said that “while the effects of any tariffs on output and inflation may take time to materialise, falls...
China and Hong Kong alongside other markets were closed for Lunar New Year holidays, which muted trading, but the Nikkei gained 1.19%...
The U.S. currency has been correlating inversely with global stock market direction of late on the causation that risk-on phases have seen investors...
U.S. personal income rose 0.3% in November with spending up 0.6%. The 0.4% increase in October income was not revised. The 0.3% spending increase..
The FOMC meeting is front and center this week following the solid November jobs report on Friday, which provided the final bit of cover for...
Asian stock markets headed south again, as declines and energy and mining stocks led shares lower amid a further drop in metal prices. Concern China’s regulators may limit the flow...
The rout on Chinese bond and stock markets that dominated Thursday’s session faded and the Nikkei managed a 0.12% gain as the yen...
After a couple of panicky moments in global equities over the past week, the markets will keep a wary eye on political developments. In Washington...