Global Markets:
- Asian stock markets: Shanghai Composite down 0.65 %, Hang Seng lost 0.60 %, ASX 200 declined 0.30 %, Nikkei closed for Holiday
- Commodities: Gold at $1132 (+0.15 %), Silver at $15.86 (-0.05 %), WTI Oil at $52.70 (-0.50 %), Brent Oil at $54.85 (-0.35 %)
- Rates: US 10-year yield at 2.55, UK 10-year yield at 1.37, German 10-year yield at 0.26
News & Data:
- UK Lloyds Business Barometer Dec: 39 (prev 32)
- China MNI Business Indicator Dec: 55.9 (prev 53.1)
- PBoC fixes yuan midpoint at 6.9463 (prev 6.9434)
- Asia stocks pressured by Wall Street, dollar holds below 14-year peak – RTRS
- Dollar relaxes, saves its strength for New Year – RTRS
- Oil prices fall on profit taking, strong dollar – RTRS
Markets Update:
The FX market was quiet overnight, with Japanese markets closed and a lack of news/data. EUR/USD consolidated in a 1.0430-45 range, while GBP/USD traded 1.2270-90 and USD/JPY 117.45-60 in Asia. AUD/USD fell from 0.7205 to 0.7230, while NZD/USD tumbled from 0.6910 to 0.6895.
The Dollar remains strong into year-end, and despite techs showing that the move is slightly stretched in the short-term, momentum remains strong. Next week, volumes are likely to be lower, but we could see some renewed volatility due to position adjustments prior to the end of the year.
Today, the focus in the European session will be on French and UK GDP data. For the UK numbers, the market is expecting a 0.5 % print quarter-on-quarter and 2.3 % year-on-year.
Upcoming Events:
- 07:00 GMT – German GfK Consumer Climate
- 07:45 GMT – French GDP
- 09:30 GMT – UK GDP
- 15:00 GMT – US Michigan Consumer Sentiment
- 15:00 GMT – US New Home Sales
