Global Markets:
- Asian stock markets: Nikkei up 0.55 %, Shanghai Composite fell 3.60 %, Hang Seng declined 1.25 %, ASX 200 lost 0.20 %
- Commodities: Gold at $1235 (-0.35 %), Silver at $15.27 (-0.20 %), WTI Oil at $31.90 (-0.80 %), Brent Oil at $34.05 (-1.00 %)
- Rates: US 10 year yield at 1.74, UK 10 year yield at 1.39, German 10 year yield at 0.17
News & Data:
- Australia Private Capital Expenditure (QoQ) Q4: 0.8% (exp -3.0% prev -9.2%)
- PBoC Fixes Yuan At 6.5318 (prev 6.5302)
- New Zealand FinMin English RBNZ Has Room To Respond On Inflation If Needed — BBG
- Asian stocks tentative on anxiety over volatile oil – RTRS
- U.S. new home sales tumble; services sector weakens – RTRS
- Pound set for long fall on Brexit fears – FT
- Oil prices reverse losses amid volatility – FT
Markets Update:
USD/JPY bounced off the 111.00 level yesterday and finished the day around 112.00. In Asia, it extended gains to 112.40 as the Nikkei reversed losses. While most other Asian stock markets are down, the Nikkei is currently up around 0.50 %. The British Pound remains under pressure after it broke below the 1.39 level yesterday. In Asia, it recovered slightly as it reached a high of 1.3940, but selling interest appears to be strong on any rally.
EUR/USD has not been moving much in the past few trading sessions and the overnight one has been quiet as well for the currency pair. It opened around 1.1010 in Sydney and traded within a 1.1005-28 range. Further consolidation seems likely until a major data release or event.
The commodity currencies had a mixed performance. While the Australian and New Zealand Dollar declined overnight, the Canadian Dollar was supported by a rise in oil prices. USD/CAD fell from 1.3860 in yesterday's NY session to a low of 1.3680. In Asia, the pair consolidated between 1.3692 and 1.3730.
Upcoming Events:
- 08:00 GMT – Spanish GDP
- 09:30 GMT – UK GDP
- 10:00 GMT – Euro zone CPI
- 13:30 GMT – US Durable Goods Orders
- 13:30 GMT – US Initial Jobless Claims
- 21:45 GMT – New Zealand Trade Balance
