Global Markets:
- Asian stock markets: Nikkei up 2.25 %, Shanghai Composite gained 0.40 %, Hang Seng fell 0.25 %, ASX 200 lost 0.05 %
- Commodities: Gold at $1161 (-0.05 %), Silver at $16.42 (+0.10 %), WTI Oil at $52.75 (+0.80 %), Brent Oil at $55.90 (+0.75 %)
- Rates: US 10-year yield at 2.47, UK 10-year yield at 1.31, German 10-year yield at 0.25
News & Data:
- Japan Nikkei Manufacturing PMI (Dec F): 52.4 (prev 51.9)
- Westpac China Consumer Sentiment (December): 116.6 (prior 114.9)
- South Korea Current Account 7.14bln (prev 6.01bln)
- China considers options to support the yuan and curb outflows, BBG reports
- Strong dollar lifts Japan shares, crimps commodities – RTRS
- Oil prices edge up on expectations of tightening supplies – RTRS
- Dollar edges back towards 14-year peak as U.S. debt yields rise – RTRS
Markets Update:
The US Dollar regained some strength following stronger than expected manufacturing data released yesterday. EUR/USD fell to a fresh multi-year low at 1.0340 in New York, but was able to recover into the end of the trading day. In Asia, it traded within a 1.0390-1.0425 range.
The Pound remains under pressure as well, with on-going worries about a hard Brexit also weighing on the currency. It bounced off 1.22 support again, but it looks rather fragile given how weak the rallies are.
USD/JPY had a sharp decline from 118.65 to 117.20 yesterday, after resistance proved to be too strong again. However, it rebound in Asia and rallied back above 118. Further gains seem likely.
AUD and NZD were less volatile. AUD/USD saw a decline back to 0.72, but is now again consolidating near the 0.7245 resistance level. The New Zealand Dollar fell from 0.6940 to 0.6890.
Upcoming Events:
- 08:15 GMT – Spanish Services PMI
- 08:45 GMT – Italian Services PMI
- 08:50 GMT – French Services PMI
- 08:55 GMT – German Services PMI
- 09:00 GMT – Euro Zone Services PMI
- 09:30 GMT – UK Construction PMI
- 10:00 GMT – Italian CPI
- 10:00 GMT – Euro Zone CPI
- 19:00 GMT – FOMC Meeting Minutes
- 22:30 GMT – Australia AIG Service Index
