Global Markets:
- Asian stock markets: Nikkei up 4.25 %, Shanghai Composite down 0.30 %, Hang Seng rose 1.45 %, ASX 200 gained 1.00 %
- Commodities: Gold at $1100 (+0.15 %), Silver at $14.08 (-0.15 %), WTI Oil at $29.75 (+0.70 %), Brent Oil at $29.58 (-0.15 %)
- Rates: US 10 year yield at 2.03, UK 10 year yield at 1.68, German 10 year yield at 0.45
News & Data:
- Japan Nikkei Manufacturing PMI (Jan, P): 52.4 (exp 52.8 prev 52.6)
- PBoC Fixes Yuan Reference Rate At 6.5572 (prev 6.5585)
- Moody's Cuts '16 Oil Price Estimates To $33/Barrel (Brent Prev $43, WTI Prev $40)
- Nikkei report that BoJ mulls further easing in the midst of economic uncertainty: BBG
- Soros Expects Hard Landing for China Economy — BBG
- China VP Li: China Has No Intention To Devalue Yuan — BBG
- China VP Vows To ‘Look After’ Stock Market Investors — BBG
- Asia stocks rise as ECB soothes nervous markets, oil extends bounce – RTRS
- Dollar firms on divergent monetary policy expectations – RTRS
- Oil prices stretch gains on cold U.S., European weather – RTRS
Markets Update:
The Euro fell overnight after dovish comments from ECB President Draghi, which hinted at further monetary policy easing amid a weak inflation outlook. EUR/USD fell from 1.0920 to 1.0780 during the press conference, bounced from there and recovered into the daily close, but eventually fell back to 1.0830 in Asia. The next major support level is seen at 1.0715/20, the early January lows.
USD/JPY rallied as the stock markets in Asia recovered. The pair started the day around 117.40 and made it to a high of 118.00 earlier. Initial resistance is seen at 118.30 and then at 118.80.
The commodity currencies benefited from improved risk appetite. AUD/USD rose above 0.70 overnight after the short-term double bottom at 0.6830 got confirmed. Meanwhile, NZD/USD rallied from 0.6420 at yesterday's NY open to a high of 0.6560.
USD/CAD saw a sharp decline from 1.4520 to 1.4220 amid a bounce in oil prices, as well as CAD short covering after the BoC disappointment on Wednesday.
Upcoming Events:
- 08:00 GMT – French Manufacturing PMI
- 08:00 GMT – French Services PMI
- 08:30 GMT – German Manufacturing PMI
- 08:30 GMT – German Services PMI
- 09:00 GMT – Euro Zone Manufacturing PMI
- 09:00 GMT – Euro Zone Services PMI
- 09:30 GMT – UK Retail Sales
- 13:30 GMT – Canadian Retail Sales
- 13:30 GMT – Canadian CPI
- 15:00 GMT – US Existing Home Sales
