Global Markets:
- Asian stock markets: Nikkei down 1.10 %, Shanghai Composite gained 0.35 %, Hang Seng rose 0.05 %, ASX 200 lost 0.80 %
- Commodities: Gold at $1215.75 (+0.90 %), Silver at $17.19 (+0.95 %), WTI Oil at $53.25 (+0.05 %), Brent Oil at $55.55 (+0.10 %)
- Rates: US 10-year yield at 2.43, UK 10-year yield at 1.43, German 10-year yield at 0.42
News & Data:
- PBOC set USD/CNY mid-point at 6.8572 (prev fix 6.8693, prev close 6.8820) – RTRS
- Dollar slips after Trump's protectionist address, Asia shares resilient – RTRS
- Oil firms after producer meeting, but high U.S. output weighs – RTRS
- Dollar drops as investors await details of Trump's policies – RTRS
CFTC Positioning Data:
- EUR short 67K vs 66K short last week. Shorts increased by 1K
- GBP short 66K vs 66K short last week. Unchanged
- JPY short 78K vs 80K short last week. Shorts decreased by 2K
- CHF short 14K vs 14K short last week. Unchanged
- CAD short 5K vs 8K short last week. Shorts trimmed by 3K
- AUD long 5K vs 2K short last week. Longs increase by 7K in the week
- NZD short 12K vs 14K short last week. Shorts trimmed by 2K
Markets Update:
The US Dollar declined in Asia, following a protectionist tone in US President Donald Trump's inauguration speech. EUR/USD opened around 1.0695 and rallied to 1.0750, while GBP/USD broke above 1.2420 resistance and extended gains to 1.2445. USD/JPY came under renewed pressure and fell from 114.40 to 113.45, with little support now seen until 112.
The commodity currencies benefited from the Dollar weakness as well. AUD/USD rallied from 0.7550 to 0.7580, while NZD/USD made it up from 0.7160 to 0.7210.
Oil prices were slightly higher at the open as the OPEC announced over the weekend that the output cuts have been implemented successfully. Precious metals are up on the day as well, driven by the broad USD weakness. Gold almost reached $1220 overnight, while Silver rallied to $17.24.
Upcoming Events:
- 11:30 GMT – ECB President Draghi speaks
- 13:30 GMT – Canadian Wholesale Sales
- 15:00 GMT – Euro Zone Consumer Confidence
The Week Ahead:
Tuesday, January 24th
- 08:00 GMT – French Manufacturing PMI
- 08:00 GMT – French Services PMI
- 08:30 GMT – German Manufacturing PMI
- 08:30 GMT – German Services PMI
- 09:00 GMT – Euro Zone Manufacturing PMI
- 09:00 GMT – Euro Zone Services PMI
- 14:45 GMT – US Manufacturing PMI
- 15:00 GMT – US Existing Home Sales
- 15:00 GMT – US Richmond Manufacturing Index
- 23:50 GMT – Japanese Trade Balance
Wednesday, January 25th
- 00:30 GMT – Australian CPI
- 09:00 GMT – German IFO Business Climate
- 13:15 GMT – German Central Bank President Weidmann speaks
- 14:30 GMT – US Crude Oil Inventories
- 15:30 GMT – SNB Chairman Jordan speaks
- 16:00 GMT – Bank of England Governor Carney speaks
- 21:45 GMT – New Zealand CPI
Thursday, January 26th
- 09:30 GMT – UK GDP
- 13:30 GMT – US Initial Jobless Claims
- 14:45 GMT – US Services PMI
- 15:00 GMT – US New Home Sales
- 23:30 GMT – Japanese CPI
Friday, January 27th
- 00:30 GMT – Australian PPI
- 13:30 GMT – US GDP
- 15:00 GMT – US Michigan Consumer Sentiment
