Global Markets:
- Asian stock markets: Nikkei down 0.10 %, Shanghai Composite gained 0.30 %, Hang Seng rose 1.30 %, ASX 200 lost 0.60 %
- Commodities: Gold at $1215 (+0.15 %), Silver at $17.18 (+0.18 %), WTI Oil at $52.70 (+0.45 %), Brent Oil at $55.70 (+0.45 %)
- Rates: US 10-year yield at 2.34, UK 10-year yield at 1.31, German 10-year yield at 0.31
News & Data:
- Australia Westpac Consumer Confidence Change SA (MoM) Jan: 0.1% (prev. -3.90%)
- China House Prices: 12.4 % (prev. 12.6 %)
- PBOC set USD/CNY midpoint at 6.8525 (prev. fix 6.8892, prev. close 6.8501)
- Fed's Williams: We've reached Fed's goal of full employment, gradual hikes likely appropriate
- Fed's Williams: Good case for 3 hikes in 2017 even without fiscal stimulus; no rate threshold to trigger balance sheet move
- Asia stocks up as Trump's dollar comment boosts exporters; sterling shines – RTRS
- Oil ticks up on weaker dollar, U.S. production outlook caps gains – RTRS
Markets Update:
The British Pound rallied more than 3 % yesterday, after UK Prime Minister presented her Brexit plan. While she did announce an exit from the EU single market, she also promised a parliamentary vote on Brexit and wanted to draw a line under the discussion of a "hard" or "soft" Brexit. GBP/USD was trading around 1.2160 when May started her speech and finished the day at 1.24. In Asia, it did retraced somewhat, falling to 1.2330.
The rise of the Pound put the Dollar under pressure across the board. EUR/USD rose back above 1.07, although it struggled at 1.0720 resistance on the first test. Meanwhile, USD/JPY fell below 113 support and a test of 111.40 seems likely in the near-term.
The commodity currencies rallied. AUD/UD extended gains to 0.7565, while NZD/USD almost reached 0.7220 resistance. USD/CAD however, ran into strong support at 1.3020 and bounced from there to 1.3070.
Upcoming Events:
- 07:00 GMT – German CPI
- 09:30 GMT – UK Unemployment Rate
- 09:30 GMT – UK Claimant Count Change
- 10:00 GMT – Euro Zone CPI
- 13:30 GMT – US CPI
- 14:00 GMT – FOMC Member Kaplan speaks
- 14:15 GMT – US Manufacturing Production
- 14:15 GMT – US Industrial Production
- 15:00 GMT – Bank of Canada Rate Decision
- 15:00 GMT – US NAHB Housing Market Index
- 16:00 GMT – FOMC Member Kashkari speaks
- 16:15 GMT – Bank of Canada Governor Poloz speaks
- 21:30 GMT – New Zealand Business NZ Manufacturing Index
- 21:45 GMT – New Zealand Building Permits
