Crossing the Bridge

25 November, 2016

The usual bridge day between Thanksgiving and the weekend arrives which will keep volumes light and ranges on the tighter side, all being well. That’s unless you are a retailer, in which case this is known as ‘Black Friday’, a phenomenon that has crossed the Atlantic in recent years. Overnight we’ve seen inflation data from Japan released, which showed prices rising by a firmer than expected 0.1% YoY, although the BoJ’s favoured measure (ex-fresh food) remains firmly in negative territory at -0.4% YoY. Sterling will have one eye on the release of revisions to Q3 GDP, which initially showed a 0.5% gain. The pound continued its positive run yesterday, cable holding above trendline support, with EURGBP holding onto the recent downtrend and the move below 0.85. The strong dollar tone has also undermined gold, with the push below 1200 being sustained yesterday. This has proven to be a key level of support in recent weeks and months, which now turns into near-term resistance.

We do see some minor US data later today in the form of Services PMI at 14:45, with trade data before that at 13:30 GMT. Neither are major market events and for now at least, we are seeing a more consolidative tone to the dollar, which has corrected lower and more so against the Aussie, kiwi and yen. There are no speaker either side of the Atlantic scheduled for today who are likely to impact currencies.


Source link  
Markets Focus on US and UK GDP

UK Gross Domestic Product (QoQ) (Q1) is expected to come in at 0.3% from 0.4% previously. Gross Domestic Product (YoY) (Q1) is expected to be...

Markets Focused on ECB Interest Rate

ECB Deposit Rate Decision will be announced and is expected to remain unchanged at -0.4%. The ECB Interest Rate Decision will also be released...

Today's Focus on US Retail Sales

At 12:30 GMT, US Retail Sales (MoM) (Mar) will be released, with an expected 0.4% from -0.1% previously. Retail Sales Ex-Autos (MoM) (Mar) is expected...


Larry Kudlow - chief economic advisor

Yesterday, Larry Kudlow accepted the role of White House Chief Economic Advisor. He immediately targeted China and said that the next step...

EU leaders agree to shore up budget

EU European Council Meetings took place on Friday and EU Council President Donald Tusk made the following comments: EU leaders agreed to spend...

A Terrible Week for the Dollar

The dollar is down 2.2% since the start of this week in what’s come to be the currency’s worst performance in two years, with USDX falling to 88.15 in a...


U.S. Inflation Data in Focus

A quiet week ahead on the data front at first glance but US Inflation on Wednesday will be a major market mover. Market participants will view this data...

USD Bears Return

USD bears returned to the market as the tensions between North Korea and the US have greatly cooled this week. North Korean media reported that North Korea Leader Kim had delayed...

USD Bears

On Wednesday, St. Louis Federal Reserve President Bullard (a non-voting member of the FOMC) stated in an interview that he, is opposed to further U.S. interest rate increases by the Federal...

  


Share: