Morning brief for December 30

30 December, 2016

EUR/USD spiked to 1.0653 in the course of the Asian session (its biggest intraday gain since early November). The US dollar slackened on the year-end profit-taking. There wasn’t any news hitting the wires. Italy’s government is going to bailout the country’s banks. The senior officials are puzzled what made the ECB double its estimate of the capital shortfall for Monte dei Paschi di Siena. We don’t expect much zest from the prices today.

USD/JPY is trading near the 116.70. The upper border of Ichimoku cloud on the H4 timeframe is acting as a resistance. The US bond yields which have been rising since the US presidential election made a reversal and went in the opposite direction towards 2.467 from its last-week peak at 2.650.

GBP/USD edged up to 1.2280. The currency pair plunged to its three-decades low after the British people voted to leave the EU. The UK macroeconomic data showed a certain degree of resilience and offered a modest support to GBP. Many analysts believe that the sterling will be rather strong until the hard Brexit scenario comes into play.

AUD/USD ticked up on the weakening of the greenback. Keep in focus Chicago PMI coming from the US later today. The index should not bring big moves to the chart, however.

Kiwi retraced from 0.6980 to 0.6950 on the Asian session.  

USD/CAD slumped to 1.3455 due to the rising oil prices and falling US dollar. Brent futures soared to $57.10. Oil prices gained 51% in the course of this year due to the OPEC and other producing countries commitments to cut their output.


Source link  
Dollar dips to four-month minimum

The evergreen buck slumped 0.4% being worth 108.81 yen, having dropped to 108.33 yen on Tuesday, which is its lowest outcome since mid-April...

Japanese GDP

Japan will release the first estimate of its GDP in the second quarter at 02:50 MT time on August 14. The recent economic news from Japan was rather positive. In the first three months of 2017...

Traders need to watch American CPI

CPI stands for Consumer Inflation Index and changes in this index correspond to the level of consumer inflation. Higher inflation creates the reason...


NFP and US labor market data

The first Friday of a month is when the US Labor Department releases an update for nonfarm payrolls (NFP), unemployment rate and average hourly earnings...

Morning brief for December 27

Financial markets are still sleeping with Christmas carols. Trading should be thin this week as the market participants are closing out 2016 volatile year...

Gold is tired of moving in the range

On the daily chart of gold, the bears remain control over the market. As long as quotes are below $ 1,195, their positions are not under threat. The update of the December low can lead to the continuation of downward movement towards $1,116...


Banks guidance ahead of the ECB meeting

It seems that everything is clear the ECB will extend its asset-purchasing program, and send the euro lower. But banks smell a rat in this announcement. The ECB should introduce more easing measures...

Goldman Sachs trade ideas for 2017

2017 is promising to be auspicious for the US dollar with the fiscal stimulus, immigration rhetoric and more protectionism spurring inflation rates and offsetting monetary policy tightening. The greenback should have a good advantage in light of the incoming political reshufflings in Europe...

Gold prices drop, but losses seen limited

Gold prices dipped, though losses were expected to remain quite limited as markets were jittery ahead of an American jobs report due later in the day and the American presidential election next week...

  


Share: