Global Markets:
- Asian stock markets: Nikkei up 0.05 %, Shanghai Composite lost 0.50 %, Hang Seng fell 0.20 %, ASX 200 gained 0.10 %
- Commodities: Gold at $1077 (-0.30 %), Silver at $14.24 (-0.55 %), WTI Oil at $36.05 (+0.60 %), Brent Oil at $36.52 (+0.80 %)
- Rates: US 10 year yield at 2.20, UK 10 year yield at 1.82, German 10 year yield at 0.56
News & Data:
- UK GfK Consumer Confidence (Dec): 2 (exp 1 prev 1)
- China CB Leading Economic Index (Nov): 342.9 (prev 341.7)
- PBoC Fixes Yuan Reference Rate at 6.4746 (prev 6.4753)
- Japan to Cut Interest-Rate Estimate for Fiscal 2016 — Nikkei
- Asian shares edge up, crude claws back some ground – RTRS
- Dollar steadies against euro, U.S. data awaited for cues – RTRS
Markets Update:
The US Dollar weakened in the past 24 hours as longs due to position covering ahead of the holidays and year-end. EUR/USD rose from 1.0850 at yesterday's NY open to a high of 1.0940. It finished the day at 1.0915 and consolidated in Asia in a 1.0905-25 range. Meanwhile, the British Pound failed to benefit from the USD weakness, with GBP/USD unable to sustain gains above 1.49. Overnight, it traded in a 1.4878-98 range.
USD/JPY ran into decent bids ahead of the 120.80 level, which kept the pair supported into the NY close. In Asia, the pair came under slight pressure ahead of the Tokyo open, but found support at 121.20 and bounced from there to 121.30.
The commodity currencies recovered, led by the New Zealand Dollar. NZD/USD rallied from 0.6760 at the NY close to a high of 0.6826 in Asia, just 8 pips shy of last week's high. Similar price action was seen in AUD/USD, which rallied from 0.7180 to 0.7225. The Canadian Dollar was also able to regain some strength and USD/CAD fell from 1.3992 to 1.3930.
Looking ahead, the focus today will be on US GDP data and Existing Home Sales numbers.
Upcoming Events:
- 07:00 GMT – Swiss Trade Balance
- 07:00 GMT – German Consumer Climate
- 13:30 GMT – US GDP
- 14:00 GMT – US House Price Index
- 15:00 GMT – US Existing Home Sales
- 15:00 GMT – US Richmond Manufacturing Index
- 21:45 GMT – New Zealand Trade Balance
