Global Markets:
- Asian stock markets: Nikkei up 1.20 %, Shanghai Composite gained 0.40 %, Hang Seng rose 0.25 %, ASX 200 up 0.10 %
- Commodities: Gold at $1084 (+0.05 %), Silver at $14.56 (+0.15 %), WTI Oil at $39.66 (-0.80 %), Brent Oil at $42.80 (-1.00 %)
- Rates: US 10 year yield at 2.29, UK 10 year yield at 1.93, German 10 year yield at 1.93
News & Data:
- Australia AiG PCI (Nov): 50.7 (prev 52.1)
- PBoC Fixes Yuan Reference Rate At 6.3985 (prev 6.3851)
- Japan Econ Min Amari Foresees 0% Growth In Japan’s July To September GDP — JT
- Gulf Markets Slip After Oil Price Drop — RTRS
- UAE Backs OPEC Plan To Maintain Stable Crude Supplies — 7D
- China 2016 GDP May Grow More Than 6.5% — Sec. Journal
CFTC Positioning Data:
- EUR short 182K vs. short 175K previous
- GBP short 28K vs. short 32K previous
- JPY short 75K vs. short 77K previous
- CAD short 39K vs. short 39K previous
- CHF short 25K vs. short 22K previous
- AUD short 47K vs. short 57K previous
- NZD long 5K vs. long 4K previous
Markets Update:
It has been a quiet start into the new trading week in FX and most of the major pairs consolidated in a tight range. EUR/USD traded in a 1.0854-87 range and sentiment is mixed after a less dovish than expected ECB and stronger than expected US employment data. In the medium- and long-term, EUR sentiment remains negative, but in the short-term, there is potential for a further short squeeze. The key level to watch is 1.10 and should we see a break above it, there will likely be further upside momentum.
GBP/USD opened around 1.51 in Sydney and spent the session in 1.5095-1.5115 range. USD/JPY traded 123.15-30, while AUD/USD was consolidating between 0.7320 and 0.7340. USD/CAD rose from 1.3365 to 1.34 as Oil prices fell overnight. Oil is under renewed pressure after the OPEC meeting and it seems that it could revisit the yearly low at $37.70 soon.
Upcoming Events:
- 07:00 GMT – German Industrial Production
- 09:30 GMT – Euro Zone Sentix Investor Confidence
- 15:00 GMT – Bank of England Governor Carney speaks
- 17:30 GMT – FOMC Member Bullard speaks
The Week Ahead:
Tuesday, December 8th
- 00:30 GMT – Australian NAB Business Confidence
- 02:00 GMT – Chinese Trade Balance
- 09:30 GMT – UK Industrial Production
- 09:30 GMT – UK Manufacturing Production
- 10:00 GMT – Euro Zone GDP
- 13:15 GMT – Canadian Housing Starts
- 13:30 GMT – Canadian Building Permits
- 15:00 GMT – US JOLTs Job Openings
- 17:50 GMT – Bank of Canada Governor Poloz speaks
Wednesday, December 9th
- 01:30 GMT – Chinese CPI
- 06:45 GMT – Swiss Unemployment Rate
- 07:00 GMT – German Trade Balance
- 20:00 GMT – RBNZ Rate Decision
- 20:00 GMT – RBNZ Statement
- 20:05 GMT – RBNZ Governor Wheeler speaks
Thursday, December 10th
- 00:30 GMT – Australian Employment Change
- 00:30 GMT – Australian Unemployment Rate
- 07:45 GMT – French CPI
- 08:30 GMT – SNB Rate Decision
- 08:30 GMT – SNB Chairman Jordan speaks
- 12:00 GMT – Bank of England Rate Decision
- 12:00 GMT – Bank of England Meeting Minutes
- 18:00 GMT – Bank of England Governor Carney speaks
- 18:00 GMT – Bundesbank President Weidmann speaks
Friday, December 11th
- 07:00 GMT – German CPI
- 07:45 GMT – French Current Account
- 13:30 GMT – US PPI
- 13:30 GMT – US Retail Sales
- 15:00 GMT – US Michigan Consumer Sentiment
