Global Markets:
- Asian stock markets: Nikkei up 0.65 %, Shanghai Composite lost 0.20 %, Hang Seng rose 0.60 %, ASX 200 lost 0.80 %
- Commodities: Gold at $1192 (-0.60 %), Silver at $16.70 (-0.80 %), WTI Oil at $53.05 (+0.10 %), Brent Oil at $56.00 (+0.05 %)
- Rates: US 10-year yield at 2.38, UK 10-year yield at 1.30, German 10-year yield at 0.32
News & Data:
- China Trade Balance (USD) (Dec): $40.82bn (est 47.55bn, prev rev 44.23bn)
- China Exports (USD) (YoY) (Dec): -6.10% (est -4.00%, prev rev -1.60%)
- China Imports (USD) (YoY) (Dec): 3.10% (est 3.00%, prev rev 4.70%)
- Japan M2 Money Stock (YoY) (Dec): 4.0% (est 4.10%, prev 4.00%)
- Japan M2 Money Stock (YoY) (Dec): 3.4% (est 3.50%, prev 3.40%)
- Yuan move last week was not a result of the PBOC intervening in the market — Sec News
- Fed's Kaplan predicts US GDP growth of 2% this year, even without fiscal stimulus
- Fed's Kaplan: Believes the FOMC should be removing monetary accommodation in 2017; inflation heading towards 2%
- Fed's Bullard: Low rates are appropriate in 2017, unlikely to see inflationary surge due to Trump. Any fiscal policy will lag – RTRS
- Yellen: Economy is performing well. Doesn't see any short-term obstacles
Markets Update:
Overnight, the US Dollar recovered somewhat from the recent losses. EUR/USD was rejected off 1.0670 resistance and fell back to 1.06 in Asia, while GBP/USD declined from 1.2320 in yesterday's EU session to a low of 1.2140. Concerns about a hard Brexit continue to weigh on the currency, and it the sharp reversal suggests it might test the recent low of 1.2040 again soon.
USD/JPY managed to bounce off 113.75 and rose to a high of 115.18 in Asia. Short-term techs remain bearish, and major resistance is seen at 115.50/60, followed by 116 and 116.80-117.00. Meanwhile, AUD/USD is consolidating after a strong rally this week. It failed to take out 0.7520 resistance on the first try, but remains well bid, and we could see a retest soon.
Economic Calendar:
- 08:00 GMT – Spanish CPI
- 13:30 GMT – US PPI
- 13:30 GMT – US Retail Sales
- 15:00 GMT – US Michigan Consumer Sentiment
- 20:30 GMT – US CFTC Positioning Data
