Global Markets:
- Asian stock markets: Nikkei down 1.10 %, Shanghai Composite gained 1.05 %, Hang Seng rose 1.30 %, ASX 200 up 1.95 %
- Commodities: Gold at $1142 (+0.10 %), Silver at $14.70 (-0.25 %), WTI Oil at $32.50 (+0.70 %), Brent Oil at $35.25 (+0.60 %)
- Rates: US 10 year yield at 1.89, UK 10 year yield at 1.53, German 10 year yield at 0.28
News & Data:
- Australia NAB Business Confidence (Q4): 4 (prev rev 1)
- Bank Of Japan Negative Interest Rate's Scope Seen Capped At JPY 30 Tln — Nikkei
- Venezuela: Iran, Iraq, Algeria, Nigeria & Ecuador Open To OPEC Meeting — BBG
- RBNZ's McDermott: Would Be Happy With Lower Kiwi Exchange Rate
- McDermott: Kiwi Needs To Be Sustainably Lower Than Where It Is
- PBoC Fixes Yuan Reference Rate At 6.5419 (prev 6.5521)
Markets Update:
After a highly volatile day, it was rather calm in the FX market overnight. The USD rose slightly in Asia, after it had its biggest intraday decline in 7 years yesterday.
USD/JPY bounced off 117.05 in the late NY session and rallied to 118.00 as Sydney opened. It extended gains to 118.20 later in the session, but ran out of momentum there. Resistance is seen at 118.50, while support can be expected at 117.60 and 117.05.
EUR/USD retraced some of its earlier gains and fell to a low of 1.1075. Intraday support is seen at 1.1058, but the key level to the downside is now 1.10. Meanwhile, GBP/USD had an even more impressive rally as it rose nearly 300 pips yesterday. The topside was capped at 1.4644 and it fell to 1.4568 in Asia. Decent support can be expected at 1.4490/1.45.
Oil rallied more than 9 % yesterday amid renewed speculation of an emergency OPEC meeting. Venezuela stated that five OPEC members and one non-OPEC country have showed interest to hold such a meeting. WTI climbed from $29.60 to $32.80, while Brent rose from $32.20 to $35.60.
Upcoming Events:
- 08:00 GMT – ECB President Draghi speaks
- 12:00 GMT – Bank of England Interest Rate Decision
- 12:00 GMT – Bank of England Meeting Minutes
- 12:45 GMT – Bank of England Governor Carney speaks
- 13:30 GMT – US Initial Jobless Claims
- 15:00 GMT – US Factory Orders
