Global Markets:
- Asian stock markets: Nikkei down 0.45 %, Shanghai Composite gained 0.10 %, Hang Seng rose 1.30 %, ASX 200 up 0.35 %
- Commodities: Gold at $1174 (+0.75 %), Silver at $16.65 (+0.55 %), WTI Oil at $53.20 (-0.20 %), Brent Oil at $56.30 (-0.30 %)
- Rates: US 10-year yield at 2.42, UK 10-year yield at 1.34, German 10-year yield at 0.27
News & Data:
- China Caixin Services PMI (Dec): 53.4 (prev 53.1)
- China Caixin Composite PMI (Dec): 53.5 (prev 52.9)
- Australia AIG Services Index (Dec): 57.7 (prev 51.1)
- Japan Monetary Base (YoY) (Dec): 23.1% (est +22.30%, prev +21.50%)
- Japan Nikkei Services PMI (Dec): 52.3 (est 51.5, prev 51.8)
- Japan Nikkei Composite PMI (Dec): 52.8 (prev 52)
- U.S. likely to designate S. Korea as currency manipulator along with China – Yonhap News
- PBOC fixes yuan @ 6.9307 (prev fix 6.9498, prev close 6.9306)
- Fed policymakers agree Trump fiscal boost poses inflation risk – RTRS
- Dollar eases off 14-year peak as market braces for Trump reality check – RTRS
- Asian stocks rise for eighth day on strong PMIs, Wall Street gains – RTRS
Markets Update:
The US Dollar weakened after yesterday's release of the FOMC meeting minutes, which did not reveal much new information and led to profit-taking by USD longs. EUR/USD broke above 1.05 in Asia and extended gains up to 1.0550, while GBP/USD rallied to a high of 1.2348, up 150 pips from Tuesday's low.
Strong Chinese and Japanese services PMI data boosted risk sentiment and led to a rally in Asian equities. Meanwhile, the Yen appreciated. USD/JPY fell from 117.20 pre-FOMC to a low of 116.15 and support at 116.05 looks fragile now.
AUD/USD broke above 0.73 in Asia and NZD/USD is consolidating around the 0.70 level.
Upcoming Events:
- 08:15 GMT – Swiss CPI
- 09:30 GMT – UK Services PMI
- 12:30 GMT – ECB Meeting Minutes
- 13:15 GMT – US ADP Nonfarm Employment Change
- 13:30 GMT – US Initial Jobless Claims
- 14:45 GMT – US Markit Services PMI
- 15:00 GMT – US ISM Non-Manufacturing PMI
- 16:00 GMT – US Crude Oil Inventories
