FX News Today
- Overnight, stock markets remained cautious after a slightly higher close on Wall Street. – USA500 futures down by 0.3% in overnight trading.
- Japanese markets remained under pressure and Nikkei was down -0.34%, but signals from China’s Commerce Ministry that trade talks are still on after talks between Chinese Vice Premier Liu He and US Treasury Secretary Mnuchin on how to push ahead with talks underpinned gains in Chinese markets.
- The delayed Brexit vote in the UK and the shock resignation of India’s central bank head added to a fearful tone in the region and wider indices continue to languish at low levels.
- Sterling slammed to $1.25 after Brexit vote delay, Gilt yields probed 4-month lows.
- EURUSD reversed to 1.1350 amid ‘hard Brexit’ risk from a 1.1443 3-week high.
- USDJPY has settled in the lower 113.0s – The pair had underpinned by fundamentals and limited by period bouts of intense risk-off trades, which generate safe haven demand for the Yen.
- WTI crude -3% to low $51s despite OPEC’s 1.2 mln bpd output cut.
Charts of the Day
Main Macro Events Today
- UK Average Earnings Index & Unemployment Rate – Expectations – The Q3 GDP growth, which is expected to be confirmed at 0.2% q/q, lower than initially expected and partly reflecting the -0.2% q/q contraction in Germany that quarter.
- German ZEW Economic Sentiment – Expectations – The last reading for the year is expected to come in little changed at -24.0 versus -24.1 in November, indicating that pessimists continue to outnumber optimists.
- US PPI – Expectations – Headline PPI is expected to be flat in November and core prices should rise just 0.1%, following respective gains of 0.6% and 0.5% in October.
- UK PM May to meet Juncker and EU leaders after delaying Brexit vote.
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Andria Pichidi
Market Analyst
HotForex
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