Global Markets:
- Asian stock markets: Nikkei down 0.90 %, Shanghai Composite lost 0.50 %, Hang Seng gained 0.45 %, ASX 200 fell 0.85 %
- Commodities: Gold at $1206 (+0.85 %), Silver at $16.90 (+0.80 %), WTI Oil at $52.45 (+0.15 %), Brent Oil at $55.70 (-0.30 %)
- Rates: US 10-year yield at 2.37, UK 10-year yield at 1.31, German 10-year yield at 0.32
News & Data:
- Japan Industrial Production (MoM) Nov F: 1.5 (prev. 1.50%)
- Japan Industrial Production (YoY) Nov F: 4.6% (prev. 4.60%)
- Japan Capacity Usage (MoM) Nov: 3.0% (prev. 1.40%)
- Australia ANZ Roy Morgan Weekly Consumer Confidence 15-Jan: 119.3 (prev. 120.1)
- Australia Home Loans (MoM) Nov: 0.9% (est. 0.30%, prev. -0.80%)
- Australia Investment Lending (MoM) Nov: 4.9% (prev. 0.70%)
- Australia New Motor Vehicle Sales (MoM) Dec: 0.3% (prev. -0.60%)
- NZIER: NZ Business Confidence (Q4): 26 (prev 28)
- PBOC fix USD/CNY mid-point at 6.8992 (prev. close 6.9005, prev fix 6.8874)
- Asia stocks and pound weak, brace for May's speech on Brexit stance – RTRS
- Oil prices mixed on Saudi commitment to cut output, investor scepticism – RTRS
Markets Update:
The Pound is recovering slightly ahead of the speech by UK PM May. GBP/USD started the day around 1.2017 in Asia and rallied to a high of 1.2080 later in the session. The market is expecting a hard Brexit announcement from May, so this is already partly priced in. We will also get UK CPI data 0930 GMT, so volatility in the GBP pairs will be very high today. The key levels to watch are 1.18 and 1.23.
EUR/USD rose along with Cable and reached a high of 1.0645. While it has been consolidating in the past few days, volatility can be expected to increase as well today, given that Brexit also impacts the Euro. Key resistance lies at 1.0685/1.07, while support at 1.0580.
USD/JPY is under pressure again and is likely to break below 113.60 support soon. Next support is seen at 113, followed by 111.40.
Upcoming Events:
- 09:00 GMT – Italian Trade Balance
- 09:30 GMT – UK CPI
- 10:00 GMT – Euro Zone ZEW Economic Sentiment
- 10:00 GMT – German ZEW Economic Sentiment
- 11:00 GMT – ECB Member Nowotny speaks
- 13:45 GMT – FOMC Member Dudley speaks
- 15:00 GMT – FOMC Member Bullard speaks
- 23:00 GMT – FOMC Member Williams speaks
