Global Markets:
- Asian stock markets: Nikkei down 2.05 %, Shanghai Composite fell 0.50 %, Hang Seng declined 0.55 %, ASX 200 lost 0.90 %
- Commodities: Gold at $1228.10 (+0.15 %), Silver at $15.40 (-0.20 %), WTI Oil at $30.45 (-1.00 %), Brent Oil at $33.95 (-1.00 %)
- Rates: US 10 year yield at 1.72, UK 10 year yield at 1.43, German 10 year yield at 0.21
News & Data:
- Japan All Industry Activity Index (MoM) Dec: -0.9% (exp -0.3% prev rev -1.1%)
- PBoC Fixes Yuan Reference Rate At 6.5186 (prev 6.5152)
- Fed’s Williams: Low Treasury Yields Largely Reflect Global Events — BBG
- Williams: No Real Reason To Worry About State Of US Economy
- Williams: Fed Has Options In A Downturn, Negative Rates A Tool
- Williams: Headwinds Economy Faces Means Progress Won't Be Quick
- BoE’s Weale: Would Be Surprised If Took As Long To Hike Rates As Market Expects — RTRS
- South Korea MoF: Wary Of Weakening Won — RTRS
- BoK: Increasingly Alert To KRW Weakness — BBG
Markets Update:
Most major pairs consolidated overnight, due to the lack of data and events. EUR/USD opened around 1.11 in Asia and was able to reach a high of 1.1130. Intraday support is seen at 1.1070, while resistance is noted at 1.1150/60. Meanwhile, GBP/USD was rejected at 1.4390 resistance and retraced earlier gains in the Asian session, falling to 1.4315.
USD/JPY was offered as stocks declined again. The pair fell from 113.40 to 112.70 after the Tokyo open and consolidated between 112.70-113.00 for the rest of the session. Expect solid support at 112.50, while resistance now lies at 113.40 and 113.80.
The Australian Dollar came under renewed pressure and tumbled from 0.7165 to a low of 0.7093 in Asia. First support is seen at 0.7070, but the key level remains 0.70. The Canadian Dollar weakened overnight, as oil prices retraced. USD/CAD, which traded as low as 1.3650 in yesterday's EU session, rose to a high of 1.3780.
Upcoming Events:
- 07:00 GMT – German PPI
- 08:30 GMT – Swedish Unemployment Rate
- 09:30 GMT – UK Retail Sales
- 13:30 GMT – US CPI
- 13:30 GMT – US Core CPI
- 13:30 GMT – Canadian CPI
- 13:30 GMT – Canadian Retail Sales
- 20:30 GMT – CFTC Positioning Data
