Global Markets:
- Asian stock markets: Nikkei up 1.00 %, Shanghai Composite rose 1.05 %, Hang Seng gained 1.70 %, ASX 200 rallied 1.70 %
- Commodities: Gold at $1102 (+0.50 %), Silver at $14.10 (+0.30 %), WTI Oil at $32.38 (+0.57 %), Brent Oil at $33.15 (+0.95 %)
- Rates: US 10 year yield at 2.06, UK 10 year yield at 1.72, German 10 year yield at 0.48
News & Data:
- Japan Trade Balance (Dec): JPY 140.2bln (exp JPY 117.0bln prev rev JPY -381.1bln)
- Japan Exports (YoY) Dec: -8.0% (exp -7.0% prev 3.3%)
- Japan Imports (YoY) Dec: -18.0% (exp -16.4% prev -10.2%)
- PBoC Fixes Yuan Reference Rate At 6.5557 (prev 6.5572)
- IMF's Lagarde: Markets Need Clarity On China Currency — RTRS
- Iran Oil Min Zanganeh: OPEC Meeting Unlikely — RTRS
- Asia stocks rise after U.S. snowstorm rescues oil price – RTRS
- Dollar edges down but close to recent highs; Fed, BOJ in focus – RTRS
- Crude extends gains after surge on short-covering, cold spell – RTRS
CFTC Positioning Data:
- EUR short 137K vs 146K short prior week
- GBP short 39K vs. 31K short prior week.
- JPY long 38K vs. 25K long prior week
- CAD short 66K vs. 59K short prior week
- CHF long 1K vs. 3K long prior week
- AUD short 36K vs. 23K short prior week
- NZD short 3K vs 2K long prior week
Markets Update:
It was a quiet trading session overnight, with no significant data releases or events. The US Dollar weakened against most major currencies, while the New Zealand Dollar was the best performing currency overnight. NZD/USD rallied from a low of 0.6460 in the early Asian session to a high of 0.6532 and resistance is now seen at 0.6560 and 0.6590. The Australian Dollar also rose overnight, with AUD/USD climbing from 0.6580 to 0.7030. Meanwhile, USD/CAD fell from 1.4170 to 1.4130 after the Tokyo open and spent the rest of the session trading between 1.4130 and 1.4140.
EUR/USD traded 1.0793-16, while GBP/USD consolidated in a 1.4262-1.4310 range. USD/JPY initially fell to a low of 118.45, but caught a bid as equity markets opened higher and rose to a high of 118.85.
Upcoming Events:
- 09:00 GMT – German IFO Business Climate
- 09:00 GMT – German IFO Business Expectations
- 10:00 GMT – Italian Retail Sales
- 18:00 GMT – ECB President Draghi speaks
The Week Ahead:
Tuesday, January 26th
- 10:45 GMT – Bank of England Governor Carney speaks
- 14:00 GMT – US House Price Index
- 14:45 GMT – US Services PMI
- 15:00 GMT – US CB Consumer Confidence
- 15:00 GMT – US Richmond Manufacturing Index
Wednesday, January 27th
- 00:30 GMT – Australian CPI
- 00:30 GMT – Australian NAB Business Confidence
- 07:00 GMT – German GfK Consumer Climate
- 15:00 GMT – US New Home Sales
- 15:30 GMT – US Crude Oil Inventories
- 19:00 GMT – Federal Reserve Interest Rate Inventories
- 19:00 GMT – FOMC Statement
- 20:00 GMT – RBNZ Interest Rate Decision
- 21:45 GMT – New Zealand Trade Balance
Thursday, January 28th
- 09:30 GMT – UK GDP
- 13:00 GMT – German CPI
- 13:30 GMT – US Durable Goods Orders
- 13:30 GMT – US Initial Jobless Claims
- 15:00 GMT – US Pending Home Sales
- 23:30 GMT – Japan Unemployment Rate
- 23:30 GMT – Japan CPI
- 23:30 GMT – Japan Household Spending
- 23:50 GMT – Japan Industrial Production
Friday, January 29th
- 00:00 GMT – New Zealand ANZ Business Confidence
- 00:30 GMT – Australian PPI
- 06:30 GMT – French GDP
- 06:30 GMT – Bank of Japan Press Conference
- 07:00 GMT – German Retail Sales
- 07:45 GMT – French CPI
- 08:00 GMT – Spanish GDP
- 08:00 GMT – Spanish CPI
- 10:00 GMT – Euro Zone CPI
- 13:30 GMT – US GDP
- 13:30 GMT – Canadian GDP
- 14:45 GMT – US Chicago PMI
- 14:55 GMT – US Michigan Consumer Sentiment
