Risk return temporary

13 January, 2016

Finally some risk appetite is returning to Asian markets which have bounced overnight and this is due to feed into today’s European session. Chinese trade data was better than expected with a surprise improvement in exports which has been assisted by a weaker yuan. The China story has dominated the markets so far this year and in one way it’s nice not to be talking about other things such as the Fed, but in others this topic is likely to remain a dominant force in 2016, more so than in the past as the world’s second largest economy continues to slow meaning this return of risk appetite we’ve seen so far this week may be temporary.

Economic data to focus on today comes in the form of Eurozone industrial production which is expected to decline. If we see a deterioration along the lines of yesterday’s industrial and manufacturing data from the UK then we could see a corresponding move to the downside in the single currency. EURUSD has pulled back from its attempts of breaking the 1.1000 level once again and looks vulnerable to further weakness, especially since today sees some Fed members speaking in the form of Rosengren and Evans, so it will be interesting to hear their thoughts on last week’s impressive nonfarm payroll. Then there’s the release of the Beige Book, so we could see some volatility in the dollar.


Source link  
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...


Chinese Data Disappoints

China’s economy has been robust throughout 2017 as a continued recovery in manufacturing and industrial sectors, a healthy property market...

Data & Polls Pressure Sterling

Sterling suffered downward pressure on Tuesday as the latest monthly report from the British Retail Consortium showed non-food sales slumping...

Closing the Year on a Strong Note

Data released on Monday indicates that the Eurozone economy is on target to close out 2017 strongly. The latest Markit composite PMI fell...


Sterling Falls on Rate Rise

In line with market expectations, the Bank of England raised the UK base rate to 0.5% (from 0.25%) on Thursday. The rise, the first in 10 years, was widely...

Another Political Headache for Trump

USD gave up some of its recent gains on news that investigators had charged President Trump’s former campaign manager regarding...

US Jobless Claims Lowest Since 1973

US Department of Labor released Initial Jobless Claims for the week ending October 13th that showed a resilient and stable labor market...

  


Share: