Global Markets:
- Asian stock markets: Nikkei up 1.30 %, Shanghai Composite gained 0.75 %, Hang Seng declined 0.35 %, ASX 200 rose 0.30 %
- Commodities: Gold at $1169 (-0.23 %), Silver at $17.02 (-0.45 %), WTI Oil at $51.20 (+0.75 %), Brent Oil at $54.10 (+0.40 %)
- Rates: US 10 year yield at 2.43, UK 10 year yield at 1.38, German 10 year yield at 0.38
News & Data:
- Chinese CPI (YoY) Nov: 2.3% (est 2.2%, prev 2.1%)
- Chinese PPI (YoY) Nov: 3.3% (est 2.2%, prev 1.2%)
- Japanese M2 Money Stock (YoY) Nov: 4.0% (est 3.7%, prev 3.7%)
- Japanese M3 Money Stock (YoY) Nov: 3.4% (est 3.2%, rev 3.1%)
- Japan BSI Large All Industry Survey Q4: 3.0 (prev 1.9)
- Japan BSI Large Manufacturing Survey Q4: 7.5 (prev 2.9)
- Australian Home Loans (MoM) Oct: -0.8% (est -1.0%, prev 1.6%)
- Australian Investment Lending (MoM) Oct: 0.7% (prev 4.6%)
- NZ Card Spending Retail (MoM) Nov: -0.1% (est 0.4%, prev 0.6%)
- NZ Card Spending Total (MoM) Nov: -0.3% (prev 0.6%)
- Malaysia Industrial Production (YoY) Oct: 4.2% (est 3.4%, prev 3.2%)
- Malaysia Manufacturing Sales Value (YoY) Oct: 1.9% (prev 1.1%)
- PBoC sets CNY midpoint at 6.8972 (prev 6.8731)
Markets Update:
The Euro declined yesterday, after the ECB extended the duration of its QE programme to December 2017 and maintained its dovish tone. In Asia, EUR/USD consolidated between 1.0590 and 1.0620. Support is now seen at 1.0550, followed by the key level at 1.0503. To the topside, resistance is noted at 1.07 and 1.0805. GBP/USD followed the Euro lower, and fell from 1.27 to 1.2550 yesterday. The break below 1.2570 support is bearish and suggests Cable could test 1.24 soon.
USD/JPY remains well bid and rose from 114 to 114.60 in Asia. Strong resistance is noted at 114.80, but if it takes out that level, there is not much resistance until 116.
The commodity currencies were rather quiet overnight. AUD/USD traded 0.7440-65, while NZD/USD consolidated between 0.7165 and 0.7180.
Upcoming Events:
- 06:45 GMT – Swiss Unemployment Rate
- 07:00 GMT – German Trade Balance
- 09:30 GMT – UK Trade Balance
- 15:00 GMT – US Michigan Consumer Sentiment
- 20:30 GMT – CFTC Positioning Data
