Global Markets:
- Asian stock markets: Nikkei down 0.10 %, Shanghai Composite fell 0.30 %, Hang Seng declined 0.25 %, ASX 200 lost 0.45 %
- Commodities: Gold at $1234 (-1.10 %), Silver at $15.77 (-0.75 %), WTI Oil at $40.98 (-1.15 %), Brent Oil at $41.42 (-0.90 %)
- Rates: US 10 year yield at 1.94, UK 10 year yield at 1.45, German 10 year yield at 0.21
News & Data:
- PBoC Fixes Yuan At 6.4936 (prev 6.4971)
- Bank of Japan's Funo: Will Use All 3 Easing Measures To Achieve Price Target — BBG
- Funo: Vital BoJ Proceeds With Monetary Easing
- Funo: Must Achieve Inflation Goal, Balanced With Growth & Wage Increases — RTRS
- BoJ's Funo: Expect CPI To Reach 2% Around H1 Of FY2017
- Japanese FinMin Aso: May Take More Than 3 Months to See Effects Of BoJ’s NIRP — BBG
- BoJ Gov Kuroda: BoJ Expects Small Impact From 2017 Tax Hike — BBG
- Kuroda: BoJ Will Manage Monetary Policy Appropriately
- Kuroda: Economic Environment Is Set For Wage Growth
- IEA: Oil Market Will Balance In 2017, Stockpiles To Fall 2018-2021 — BBG
- IEA: Doha Meeting Wont Impact Supplies — BBG
- Dollar edges down, underpinned by Fed rate talk – RTRS
Markets Update:
Overnight, the US Dollar strengthened against most major currencies, while Asian stock markets and Gold fell. Gold had a sharp decline around 04:00 GMT, when stops below $1240 were triggered and price fell to a low of $1231. Silver fell from $15.88 to $15.72.
EUR/USD started the new trading day around 1.1225 but then declined to 1.1205 as the USD strengthened across the board. Meanwhile, GBP/USD fell from 1.4225 to 1.4195 and remains under pressure as the market seems to think that yesterday's terrorist attack have increased the chance of a Brexit. The next notable support level now lies at 1.4120, followed by 1.4050.
USD/JPY is still struggling with 112.50 resistance and consolidated in a 112.15-47 range overnight. Should it break above 112.50, resistance is then seen at 113.0 and 113.80. USD/CAD remains surprisingly quiet, given the price action in oil. The pair briefly broke above 1.31 yesterday morning, but eventually settled again in a 1.3030-60 range. Overnight, it rose from 1.3050 to 1.3090.
Upcoming Events:
- 08:00 GMT – Spanish PPI
- 10:00 GMT – Swiss ZEW Economic Expectations
- 12:40 GMT – German Central Bank President Weidmann speaks
- 14:00 GMT – US New Home Sales
- 14:30 GMT – US Crude Oil Inventories
- 21:45 GMT – New Zealand Trade Balance
