10-year Bund yields are down -0.6 bp at 0.216% in opening trade. Treasury yields also fell back from overnight highs and are now down -0.2 bp at 2.739%, while JGB yields remain up 0.8 bp at 0.001%.
Stock markets mostly managed to move higher in Asia overnight (excluding the Nikkei which closed with a loss of 0.09%) and DAX futures are also up, while US futures are narrowly mixed and the FTSE 100 future is swinging between gains and losses.
Brexit developments remain in focus, but while in the UK officials continue to struggle to find a consensus on the way forward, the focus in the Eurozone turns to the ECB meeting today.
Rates are widely expected to remain on hold and the guidance little changed, but Draghi is likely to sound much more cautious on the growth and inflation outlook, which should underpin stock markets.
Norges Bank is also expected to hold rates steady and the data calendar focuses on Eurozone PMI readings, which are expected to show further weakness in the preliminary release for January.
US earnings reports have helped to underpin risk appetite in recent days, while the ongoing government shutdown is preventing timely data releases and leaving investors focused on trade talk developments, company news and in Europe, Brexit jitters.
Charts of the Day
Main Macro Events Today
EU Services, Manufacturing, and Composite PMI – The Services PMI is expected to come out at 51.5 in January, compared to 51.2 in December. This is expected to have a positive impact on the Composite PMI, which is expected to rise to 51.4 compared to 51.1 in December. The Manufacturing PMI is expected to have remained at the same levels as in December.
World Economic Forum at Davos – The third day of the WEF annual meetings held in Davos and attended by officials from over 90 countries. Comments from central bankers and other influential officials can create significant market volatility.
ECB Interest Rate Decision – ECB is not expected to proceed with any changes in the interest rate yet as it is has just started evaluating the effects from the end of QE in December. However, communication could provide important information regarding the future path of policy.
US Jobless Claims – Initial Jobless Claims are expected to rise to 220k compared to 213k last week, while Continuing Jobless Claims are expected to decline slightly to 1.735M, compared to 1.737M last week.
US Services, Manufacturing, and Composite PMI – Reductions in PMIs are expected in all sectors, in conjunction with the overall perception of a slowdown in the US, and the ongoing government shutdown.
Support and Resistance Levels
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission. Date : 24th January 2019.
MACRO EVENTS & NEWS OF 24th January 2019.
FX News Today
10-year Bund yields are down -0.6 bp at 0.216% in opening trade. Treasury yields also fell back from overnight highs and are now down -0.2 bp at 2.739%, while JGB yields remain up 0.8 bp at 0.001%.
Stock markets mostly managed to move higher in Asia overnight (excluding the Nikkei which closed with a loss of 0.09%) and DAX futures are also up, while US futures are narrowly mixed and the FTSE 100 future is swinging between gains and losses.
Brexit developments remain in focus, but while in the UK officials continue to struggle to find a consensus on the way forward, the focus in the Eurozone turns to the ECB meeting today.
Rates are widely expected to remain on hold and the guidance little changed, but Draghi is likely to sound much more cautious on the growth and inflation outlook, which should underpin stock markets.
Norges Bank is also expected to hold rates steady and the data calendar focuses on Eurozone PMI readings, which are expected to show further weakness in the preliminary release for January.
US earnings reports have helped to underpin risk appetite in recent days, while the ongoing government shutdown is preventing timely data releases and leaving investors focused on trade talk developments, company news and in Europe, Brexit jitters.
Charts of the Day
Main Macro Events Today
EU Services, Manufacturing, and Composite PMI – The Services PMI is expected to come out at 51.5 in January, compared to 51.2 in December. This is expected to have a positive impact on the Composite PMI, which is expected to rise to 51.4 compared to 51.1 in December. The Manufacturing PMI is expected to have remained at the same levels as in December.
World Economic Forum at Davos – The third day of the WEF annual meetings held in Davos and attended by officials from over 90 countries. Comments from central bankers and other influential officials can create significant market volatility.
ECB Interest Rate Decision – ECB is not expected to proceed with any changes in the interest rate yet as it is has just started evaluating the effects from the end of QE in December. However, communication could provide important information regarding the future path of policy.
US Jobless Claims – Initial Jobless Claims are expected to rise to 220k compared to 213k last week, while Continuing Jobless Claims are expected to decline slightly to 1.735M, compared to 1.737M last week.
US Services, Manufacturing, and Composite PMI – Reductions in PMIs are expected in all sectors, in conjunction with the overall perception of a slowdown in the US, and the ongoing government shutdown.
Support and Resistance Levels
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
10-year Treasury yields are up 1.6 bp at 2.732% while JGB yields fell back -0.4 bp to -0.008%, despite broad gains on Asian stock markets overnight.
Topix and Nikkei managed gains of 0.87% and 0.97% respectively. The Hang Seng is up 1.44% and the CSI 300 1.23%. The ASX climbed 0.8%, lifted by higher commodity prices.
Earnings reports have helped to prop up market sentiment this week, despite the fact that economists and central banks are now catching up with the gloomy view on the outlook for world growth that already sent markets lower at the end of last year.
The global cyclical chip sector seems to be recovering, which is underpinning tech stocks.
US and European stock futures are also posting broad gains, suggesting an overall positive end to the week, with markets now bracing for key events next week including the continuation of US-Sino trade talks as well as the Fed meeting.
ECB’s Coeure commented that it’s too early to discuss whether ECB will hike rates this year, while adding that the central bank may have to adjust rate guidance at some point. Coeure admitted in a Bloomberg interview that the economic slowdown has surprised the central bank although he also added that the jury is still out on how persistent the slowdown will be.
Charts of the Day
Main Macro Events Today
Baker Hughes US Oil Rig Count – Oil Rigs stood at 852 last week, with the number of drills highly dependent on the price of Oil.
US Monthly Budget Statement – In view of the US government shutdown, the Budget Statement in December is expected to be much lower than the previous month, at a deficit of 12 billion, compared to a deficit of 205 billion in November.
World Economic Forum at Davos – The third day of the WEF annual meetings held in Davos and attended by officials from over 90 countries. Comments from central bankers and other influential officials can create significant market volatility.
German Ifo Business Climate – Following the slowdown in the German economy, business climate is expected to decline to 100.7 compared to 101.0 in the previous month.
Support and Resistance Levels
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
10-year Treasury yields corrected from Friday’s highs and are down -1.8 bp at 2.740%.
Stock markets in Asia initially got support from US President Trump’s agreement to a temporary end to the 35-day partial government shutdown which underpinned Wall Street on Friday.
However, Trump also threatened to resume the shutdown on Feb 15 if his demands on the financing of a border wall are not met.
Japan underperformed and Topix and Nikkei were under pressure from the off, while elsewhere gains faded during the course of the session as markets continue to fret over potential risk factors, first and foremost the US-Sino trade talks and Brexit.
Topix and Nikkei lost -0.68% and -0.60% respectively. The Hang Seng is now down -0.105 and the CSI 300 down -0.06%.
Australia is shut for a holiday and US futures are heading south.
Oil prices fell back from a session high of USD 53.64 per barrel and the front end WTI future is now at USD 53.01 per barrel.
Charts of the Day
Main Macro Events Today
ECB Draghi Speech (EUR, GMT 14:00) – The ECB President is due to testify at the European Parliament in Brussels.
New Zealand Trade Balance (NZD, GMT 22:45) – The New Zealand trade balance is expected to have come out in surplus area in December, compared to a deficit in November.
Support and Resistance Levels
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
US equities turned lower after a miss by CAT and warning from Nvidia, both partly blaming the global slowdown and China in particular for their woes;yields back down.
Criminal charges in the US against Chinese telecom giant Huawei overshadow trade talks and prevent a long-awaited US-Sino deal.
Topix and Nikkei lost -0.63% and -0.47% respectively.
Brexit at complex crossroads in UK; today’s parliamentary votes may clear picture
Oil prices are higher and the front end WTI future is trading at USD 52.43 per barrel.
EURUSD recovered to clear 1.14, up from last week’s 6-wk low at 1.1289.
USDJPY came off highs, concurrently with correction in global stock markets.
Charts of the Day
Main Macro Events Today
Brexit:
A number of amendments are due to be voted today in Parliament, including ones that seek to either delay Brexit from March 29, or to legislate against there being a no-deal Brexit, or opens the way to a second referendum on EU membership.
Parliament is also due to vote on the Prime Minister May’s Withdrawal Agreement, which lacking a concession from the EU to write-in an amendment that legally time limits the Irish backstop, or allows the UK to unilaterally withdraw from it, looks set to be rejected.
A no-deal Brexit scenario remains a possibility, although May, while using it as a threat, will likely ultimately prevent it, as will Parliament.
US Consumer Confidence – Expectations –January consumer confidence is expected to decline further to 126.0 from a prior 5-month low of 128.1 in December, versus an 18-year high of 137.9 in October.
Japanese Retail Trade – Expectations – December retail sales are seen contracting at a -1.0% y/y from -2.2% for large retailers. Total sales are expected to slow further to a 1.0% y/y rate from 1.4% in November and 3.6% in October.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Stock markets traded mixed in Asia – NASDAQ is outperforming, Nikkei lost -0.52% and UK100 futures are moving higher.
No more bad news from Apple: Apple Inc.’s report of sharp growth in its services business helped to underpin sentiment,.
Brexit: UK lawmakers didn’t vote to extend the Brexit deadline. PM May heads back to Brussels to re-negotiate backstop.
EU leaders were once again quick to stress that the legal text of the withdrawal agreement is not up for discussion.
French GDP numbers held up better than expected and German GfK consumer confidence unexpectedly jumped higher.
EURUSD ebbed back to net unchanged (1.1430) after posting 2-week high at 1.1451.
USDJPY stucks in the mid-to-low 109.0s.
GBPUSD is trading near 1.3100 from 1.3190 high.
The front end WTI future is trading at USD 53.42 per barrel.
Charts of the Day
Main Macro Events Today
German Jan HICP – Expectations -While the German HICP rates are above the Eurozone average now, base effects from lower energy prices continue to keep the headline rate below the ECB’s 2% limit. The preliminary January reading should be at 1.8% y/y .
ADP Employment – Expectations –The January ADP Employment report should reveal a 195k gain for the month, after a 271k December gain.
FOMC – Expectations – The FOMC statement will be released at 19:00 GMT. That will be followed by Chairman Powell’s press conference, which will now be a regular affair at each meeting, although forecasts will continue to be published quarterly. No one expects any action on rates tomorrow (including IOER). We expect the statement to include the new watchword “patient,” along with “flexible,” with the latter perhaps a nod to the balance sheet, and stress on data dependency.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Asian stock markets rallied after the FOMC, which boosted risk appetite.
FOMC held policy steady and pledged to be patient with further interest rate hikes – a possible sign that the Fed is signalling a potential end to its tightening cycle.
Topix and Nikkei climbed 1.08% and 1.06% respectively.
US Equities firmed after Apple, Boeing, AMD results.
German Retail Sales slumped 4.3% m/m at the start of the European session. It raised concerns about the health of the German economy.
European futures are moving higher, in tandem with US futures, after a rally overnight.
WTI crude +2.0% near $54.50 after small EIA build.
USDIndex stumbled 0.45% to 95.40; EUR probed 1.15, JPY through 109.00.
Charts of the Day
Main Macro Events Today
Eurozone Prelim. Flash GDP – Expectations – Overall Eurozone GDP should show growth holding at 0.2% q/q, but with risk to the downside.
German and EU Unemployment Change – Expectations – A decline is anticipated in the German unemployment number of -4K. The December Eurozone unemployment rate is seen falling back to 7.8% from 7.9%.
Canadian GDP – Expectations – GDP for November is on track to contract 0.1% in November (m/m, sa) as the sharp decline in oil prices materially impacted the economy.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
US-Sino trade talks will continue later this month with the March 1 deadline for tariff hikes coming ever closer. Both sides sounded cautiously optimistic
Stock markets traded mixed in Asia. Topix and Nikkei closed with a gain of -0.18% and a marginal gain of 0.07% respectively.
China’s manufacturing PMI decline dropped to the lowest level since February 2016. This revived concerns about the country’s economic strength.
Earnings reports continue to come into the mix and banks were the biggest drag on Japanese benchmarks, while electronics makers gained.
European stock futures are moving higher and US futures are now also mostly up as the focus shifts to US jobs data.
The WTI rallied as much as 2%, peaking at two-plus month highs of $55.32 before falling back to the current $53.80.
EURUSD eased from 3-week highs, back to 1.1440 area. USDJPY is above 2-week lows and currently retesting 109.
Charts of the Day
Main Macro Events Today
Eurozone Manuf. PMI – Expectations – January Eurozone Manufacturing PMI will likely be confirmed at just 50.5 from the preliminary print, dropping from December’s 51.4, with confidence data adding to concerns that the slowdown will be more protracted than initially expected.
Eurozone’s CPI – Expectations –Eurozone preliminary CPI reading for January should be at just 1.5% y/y, down from 1.6% y/y at the end of 2018.
US Nonfarm Payrolls and ISM Manu. PMI – Expectations – January nonfarm payrolls are expected to increase by 200k, with a 195k private payroll gain. The ISM is expected to slip to a new 2-year low of 54.0 in January from 54.3 in December, versus a 14-year high of 61.4 in August.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
10-year Treasury yields are up 0.7 bp at 2.691%, and 10-year JGB yields climbed 0.8 bp to -0.023%.
Yields continue to move higher and Asian stock markets mostly managed modest gains in quiet trade, with China and South Korea closed for Lunar New Year celebrations.
Topix and Nikkei managed gains of 1.07% and 0.46% respectively, while the Hang Seng climbed 0.21% and the ASX closed up 0.48%. US futures are marginally higher.
US President Trump told CBS trade talks with China are “doing very well” and also sounded confident on an agreement with North Korea, which helped to underpin confidence and risk appetite, after strong US data releases on Friday dampened concern about the outlook for world growth and counterbalanced disappointing forecasts from Amazon.
Earnings reports will remain a key factor this week alongside fundamentals and political developments in Europe also, where Brexit concerns remain high on the agenda.
Charts of the Day
Main Macro Events Today
ECB Mersch Speech – Yves Mersch, a member of the ECB Executive Board will speak at Lamfalussy Lectures Conference of Lamfalussy Award at Central Bank of Hungary in Budapest
UK Construction PMI – The UK PMI is expected to have stood at 52.6 in January, compared to 52.8 in December.
US Factory Orders – Factory Orders are expected to have grown by 0.2% in November, compared to -2.1% in October.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
RBA left the cash rate on hold as expected and conceded that some downside risks have increased. RBA set to make subtle shift to the dovish side.
RBA’s central scenario for the economy is around 3% growth in 2019.
AUDUSD perked up to 0.7260 from 0.7204.
Alphabet beat on profits and revenue, by making $8.94 billion on $39.27 billion revenue, but shares fell 3% on continuing pressure on advertising prices and decreasing margins.
European stock futures are moving higher, while US futures are struggling and slightly in the red.
Better than expected BRC retail sales out of the UK helped to underpin sentiment ahead of Services PMI.
WTI retreated 1.2% to $54.0 area, down from 2019 highs of $55.74 bbl – Currently at $55.00 area.
Charts of the Day
Main Macro Events Today
Eurozone Services PMI – The overall Eurozone Services PMI for January is expected to come in unchanged from the preliminary number at 50.8, which should leave the composite at 50.7.
UK Service PMI – It is expected to come in with a headline of 51.0 after 51.2 in December.
EU Retail Sales – They are expected to have corrected -1.8% m/m, after the strong November reading.
US Service and ISM Non-Manufacturing PMI – The ISM-NMI Index is expected to slip further to 57.5 in January from 58.0 in December, versus a 13-year high of 60.8 in September. Services PMI is expected to be unchanged at 54.2 for January.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Asian stock markets had another lacklustre session.
In Europe, Bunds got another boost from the much weaker than expected German orders number. Manufacturing orders down -1.6% m/m.
RBA shifted to a neutral stance: RBA Governor Philip Lowe mentioned that the ‘interest rate outlook is now more evenly balanced’.
AUD tumbled in tandem with 10-year rates, which dropped -6.3 bp to 2.180%.
EURUSD at 12-day lows under 1.1400; GBPUSD drifted back below 1.3000.
WTI future is trading at USD 53.66, after falling back from levels over USD 55 yesterday.
Charts of the Day
Main Macro Events Today
US Trade Balance – The November trade deficit is expected to narrow to -$54.0 bln from -$55.5 bln.
Nonfarm Productivity and Labor Costs – Nonfarm productivity growth is pegged at 2.5% in Q4, following a Q3 trimming to 1.7% from 2.3%, while unit labor costs may rise 1.5%.
Canadian Ivey PMI – The January Ivey PMI is expected to improve to a seasonally adjusted 62.0 from 59.7 in December.
NZ Employment Change – The ISM-NMI Index is expected to slip further to 57.5 in January from 58.0 in December, versus a 13-year high of 60.8 in September. Services PMI is expected to be unchanged at 54.2 for January.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
10-year Treasury yields are down 0.5 bp at 2.690% but JGB yields are up 1.3 bp at -0.016%, despite a 0.59% decline in the Nikkei and a 0.83% drop in the Topix amid another mixed session in Asia.
Japanese shares were hit by corporate earnings, while the ASX continued to rally, gaining 1.10%, in tandem with local bonds after the dovish shift at the RBA this week.
The RBI meanwhile surprised with a cut in the repo rate by a quarter point. Hong Kong and China remained closed and despite some movement, investors continue to hold back ahead of the next round of US-Sino trade talks next week.
US futures are heading south despite a cautiously upbeat assessment of the economy from Fed Chairman Powell, who said “the US economy is now in a good place”.
The front end WTI future managed a session high of USD 54.04 before falling back to USD 53.79 per barrel.
Charts of the Day
Main Macro Events Today
Theresa May meetings in Brussels – Theresa May and the European Commission’s president will meet today, with the UK PM hoping to obtain fresh concessions, despite the EU’s insistence that it will not renegotiate the Brexit deal. In late afternoon, May is also expected to meet with Donald Tusk, the European Council President.
BoE Interest Rate Decision – BoE is not expected to bring forth any changes to its interest rate policy ahead of a Brexit agreement and thus the rate is expected to remain at 0.75%.
BoE Carney Speech – Mark Carney is expected to speak along with other MPC members about the BoE inflation report.
Fed Clarida Speech – FOMC Member, Richard Clarida is due to speak at the Czech National Bank’s conference about the neutral interest rate, with audience questions expected.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
10-year Treasury yields are down -1.1 bp and JGB yields dropped -1.7 bp to -0.038% as Asian stocks tumbled on growth concerns and pessimism on US-Sino relations, with markets worrying that there won’t be a trade deal in time to prevent another round of tariff hikes.
Asked whether he would meet Chinese President Xi Jinping before the March 1 deadline US President Trump said “No”, before adding “unlikely”, although he suggested they would “maybe” meet later.
Topix and Nikkei lost -1.86% and -1.96% respectively today. The Hang Seng fell back -0.215, after returning from holiday, while mainland China markets remained closed.
The ASX is down after the RBA slashed its growth projection to 2.5% from 3.25% with its quarterly statement on monetary policy today. The CPI forecast was cut to 1.25%.
Growth warnings in Europe yesterday saw European and US markets closing with broad losses. The negative growth backdrop and heightened risk aversion is keeping bond markets supported.
Oil prices fell back to USD 52.26 per barrel.
Fed’s Bullard promotes caution on balance sheet unwind. He declined to say how close the Fed is to ending balance sheet unwind process but said “We are closer than I thought we were a year ago”.
Charts of the Day
Main Macro Events Today
Russia Interest Rate Decision – No surprises are expected from the Russian Central Bank which is expected to keep its interest rate at 7.75%.
Canada Labour Market Data – Canadian data are expected to show a slight deterioration in the economy in January, as net change in employment is forecast to be lower than December while the unemployment rate is forecast to have grown to 5.7%, compared to 5.6% in December.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Stocks in Asia traded mixed, amid lingering concerns over US-Sino trade relations and doubt whether the talks will bring sufficient progress to prevent another round of punitive tariffs.
Chinese equities rallied after returning from last week’s holiday, with small caps and stocks in the tech hub of Shenzhen rallying. The Hang Seng was up 0.46% as of 6:30GMT the CSI 300 up 1.62% and Shanghai and Shenzen Comp climbed 1.18% and 2.58% respectively.
Japanese markets were closed for a holiday, so Treasury futures won’t trade either until Europe opens.
Elsewhere in Asia bonds traded mixed with Australia outperforming as the ASX underperformed and dropped -0.17%.
Chinese Vice Premier Liu He will meet Treasury Secretary Mnuchin and Trade Representative Lightizer in Beijing for high level talks this week.
Meanwhile the government in Washington may be heading for another shutdown, which is adding to caution in wider markets.
US futures are slightly in the red, while European futures moved slightly higher. The front end WTI future is trading at USD 52.22 per barrel.
Charts of the Day
Main Macro Events Today
Swiss CPI – The inflation rate in Switzerland is expected to have stood at 0.6% y/y in January, down from 0.7% y/y in December.
UK GDP and Production Data – UK GDP is expected to have stood at 1.4% y/y in the final quarter of 2018, compared to 1.5% y/y growth in Q3. Manufacturing production is expected to have declined by 0.7% y/y, compared to a decline of 1.1% y/y in November. Industrial Production is expected to have increased by 0.2% m/m, compared to a decline of 0.4% in November.
US Unit Labour Cost – US Unit Labour Cost growth are expected to have stood at 1.7% in 2018Q4, compared to 0.9% in the third quarter.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Stock markets remain supported by improving risk appetite, with investors hoping for progress in US-Sino trade talks.
Japanese markets outperformed in catch up trade on returning from yesterday’s holiday and underpinned by a weaker yen.
US lawmakershave reached an “agreement in principle” on funding for border security that would stop a second government shutdown on Friday.
Brexit concerns continue to linger.
Comments from ECB’s Lane, has underpinned speculation that Draghi will rule out another rate hike this year amid the expected downward revisions to growth forecasts.
The front end WTI future is trading at USD 52.55 per barrel.3
EURUSD went sub-1.1300 for first time in 6 weeks on generally firmer dollar.
USDJPY rallied to 6-wk high of 110.64, underpinned by rally in global stocks.
Charts of the Day
Main Macro Events Today
German President Weidmann speech – German President Weidmann is due to deliver a speech titled “The role of the central bank in a modern economy – a European perspective” at the University of South Africa, in Pretoria.
BoE Carney speech – Due to speak about the economic outlook and global trade tensions, in London.
Fed Chair Powell speech – Due to deliver a speech titled “Economic Development in High Poverty Rural Communities” at the Hope Enterprise Corporation Rural Policy Forum, in Mississippi.
Fed Mester and George speech – Cleveland Fed hawk Mester will update the economic outlook and policy, while KC Fed hawk George will discuss “Charting America’s Economic Course.” Though both have been two of the most hawkish on the FOMC, each has recently indicated a pause is in order currently.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
10-year Treasury yields are up 0.5 bp at 2.693% and JGB yields lifted 1.2 bp to -0.0013%.
Stocks were supported by trade talk hopes as US President Donald Trump’s suggestion that he could see letting the March 1 deadline on China tariffs slide a little if the two sides were close to a complete deal helped to underpin sentiment.
The negative sentiment that dominated much of the last months of 2018 continues to unwind, but markets will ultimately have to see permanent solutions and real results, otherwise they remain at risk of sliding back again.
For now though markets are mostly in a positive mood and while the ASX closed with a loss of -0.26%, Topix and Nikkei rallied 1.06% and 1.34% respectively. The Hang Seng is up 1.21%, China’s blue chip index CSI is up 2.1% and the Shanghai Composite 1.92%.
US futures are equally moving higher, as are European futures.
Oil prices have also come back from the lows seen early in the week and the front end WTI future is trading at USD 53.64 per barrel.
The calendar today has inflation releases for the UK and the US, with the Riksbank meeting not expected to post any surprises.
Charts of the Day
Main Macro Events Today
UK Price Indices – The UK’s Price Indices are expected to continue close to their December levels, however at mixed outcomes. The Retail Price Index is expected to stand at 2.6% y/y compared to 2.7% last month, the PPI to increase to 3.8% y/y compared to 3.7%, while the CPI is expected to have stood at 1.9% compared to 2.1% in December.
EU Industrial Production – Industrial production in the European Union is expected to continue its decline albeit at a slower pace, with a reduction of 0.4% m/m expected in the December data, compared to a 1.7% reduction in November.
US CPI Inflation – Inflation is expected to have declined in the US, in association with the prevailing understanding of a slowdown in the economy, with the CPI expected to have increased by 1.5% y/y, compared to 1.9% y/y in December. Core CPI is expected to have increased by 2.1% y/y compared to 2.2%.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
10-year Treasury yields are up 0.2 bp at 2.704% and JGB yields fell back -0.8 bp to -0.025% as the rally on stock markets faded.
Wall Street still closed with slight gains, but there wasn’t enough momentum to sustain a further broad move higher in Asia.
Topix and Nikkei closed little changed and the Hang Seng is down -0.26% while CSI 300 and Shanghai Comp are up 0.33% and 0.13% respectively, after Chinese data showed a rebound in exports at the start of the year.
The tech hub of Shenzhen outperformed with a gain of 0.93%, but the ASX closed with a marginal loss.
US futures as well as European futures are moving higher though, so there is still some life in markets after reports that the US is considering delaying China tariffs for 60 days. President Trump had already told reporters that trade talks are making good progress.
Charts of the Day
Main Macro Events Today
EU GDP – The common currency’s GDP is expected to have grown by 1.2% y/y in the final quarter of the year, the same growth rate recorded in Q3.
US Retail Sales – One of the most important indicators of consumption, Retail Sales ex Autos are expected to have grown by 0.1% m/m in December, compared to 0.2% m/m in November.
US PPI Inflation – In accordance with the slowdown picture in the US, PPI inflation is expected to have slowed to 2.5% y/y in January, compared to 2.7% y/y in December.
US Jobless Claims – Continuing Jobless Claims are expected to have increased to 1.74M on the week ending at January 8, compared to 1.736M last week. Initial Jobless Claims are expected to have decreased to 225K compared to 234K the previous week.
Brexit Vote –Theresa May has put a new motion before Parliament asking to allow her to continue negotiating, in order to seek changes to the backstop.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
USD under pressure from that weak data yesterday, as US retail sales mix has revived concerns about the global growth outlook and without tangible results, markets seem unwilling to invest any more in trade talk hopes.
Euro slipped under 1.1300 (1.285), as Germany’s flirt with recession has also shifted the focus to flagging growth in Europe, which has its own trade dispute with the US.
GBP pressured from another lost Brexit vote for the Government, moving under 1.2800.
Overnight Chinese CPI and PPI both missed expectations and Japanese Industrial Production remained woeful. Gains in AUD (under 0.7100) and NZD (0.6825) were reduced.
Stock markets closed narrowly mixed on Wall Street with the USA100 managing a slight gain, while USA30 and USA500 were pressured by disappointing Retail Sales.
In Asia most markets headed south, with Chinese indices underperforming. CSI and Shanghai Comp had rallied in recent sessions on hopes that another round of punitive tariffs could be avoided and that Trump would push out the March 1 deadline to give talks more time to progress, but the blue chip CSI 300 lost 1.58% today and the Shanghai Comp lost 1.13%, while the tech hub of Shenzen outperformed slightly, but also declined by 0.27%. The JPY dropped to 110.28 while Topix and Nikkei closed with losses of 0.79% and 1.13% respectively and the Hang Seng declined by 1.86%.
US futures are also broadly lower, suggesting a somber close to the week. Oil prices tested the USD 55 per barrel mark before returning to $55.54 per barrel.
Charts of the Day
Main Macro Events Today
UK Retail Sales – Retail Sales ex-Fuel are expected to have increased in January, to 3.0% y/y, compared to 2.6% in December.
US Industrial Production – Industrial Production is expected to have increased by 0.1% m/m in January, compared to 0.3% m/m in the previous month.
Michigan Consumer Sentiment – Sentiment is expected to have rebounded as markets anticipate that the preliminary reading will see it increase from 91.2 in January to 93.0 in February.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Japanese bond yields increased, outperforming against most other bonds in Asia as stock markets rallied.
Trade optimism, improving credit data out of China and better than expected machinery orders in Japan boosted risk appetite and Topix and Nikkei closed with gains of 1.6% and 1.8% respectively.
The Hang Seng is up 1.7% as CSI 300 and Shanghai Comp have gained 2.9% and 2.4% respectively so far.
US President Trump said over the weekend that talks were “very productive” and China’s President Xi Jinping said the latest round of meetings “achieved important progress in another step”, which fueled optimism that another round of punitive tariffs can be avoided.
Improved credit data out of China meanwhile helped to calm concerns about growth prospects in the country.
US futures are narrowly mixed and European stock markets marginally higher, so it remains to be seen whether the rally will be sustained.
The front end WTI future is trading at USD 55.93 per barrel, after testing highs over USD 56.
US markets are closed today and there was no trade in Treasuries.
Charts of the Day
Main Macro Events Today
US Presidents’ Day – US Markets closed today for a public holiday.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Dr Nektarios Michail
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Japan’s central bank: “We won’t rule out further easing measures.”
US-China trade talks resume for an extended second week in Washington after terminating in Beijing last week with “progress” but without resolution.
In Europe, Trump’s threat of auto tariffs and Brexit talks dominate ahead of tomorrow’s Fed minutes.
President Trump has 90 days to decide whether to act on the probe into whether imported vehicles pose a national security threat.
AUDJPY has been the biggest mover in a day of directionally challenged markets, as participants wait on progress from the US-China trade talks.
Cable has lodged back above 1.2900.
Crude Oil prices meanwhile are trading close to three-month highs.
Charts of the Day
Main Macro Events Today
German ZEW Investor Sentiment – A slight improvement is expected, to -14.0, which is actually a tad more pessimistic than Bloomberg consensus, which expects a rise to -13.5 from -15.0.
UK Unemployment – Unemployment rate is expected to come in unchanged at the multi-decade low 4.0%
UK Average Earnings – The average household income is anticipated to rise 3.5% y/y in the three months to December, up from 3.3% in the month prior, which would be a new cycle high for this metric.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Bund yields lower in opening trade, Equity markets mostly higher in Asia.
Stock markets in Asia remained underpinned by hopes of a US-Sino trade deal.
Wall Street closed higher, helped by positive earnings at Walmart Inc. Fresh.
President Trump meanwhile suggested that March 1 tariff deadline is not cast in stone, so there is hope that further tariffs can be avoided.
Japan’s exports fell 8.4% in January, while imports declined 0.6% y/y. The contraction in exports seems consistent with escalating concern that Japan’s export sector will be dented this year by global trade frictions and the slowing in China’s economy.
The Yuan lifted after a Bloomberg report saying the US was looking for a pledge from China that it will not devalue its yuan currency as part of the trade deal.
USDJPY has climbed to 110.91 from 110.60, amid cautious risk-on theme
WTI crude edged out fresh 3-month high of $56.77.
Charts of the Day
Main Macro Events Today
Juncker and May meet for another round of crunch talks in Brussels today.
EU Consumer Confidence – The overall Eurozone number Consumer Price Index (M/M) on course to be confirmed at 1.4% y/y.
FOMC minutes – The focus turns on the FOMC minutes to the January 29, 30 policy meeting as we look to glean more information on the Fed’s pivot to a more dovish point of view, even as rates were left unchanged. We did get a glimpse from Chairman Powell’s press conference, where he noted tighter financial conditions, along with tame inflation. And he said the onus is on price pressures to force a rate move.
Australian labour data – The unemployment rate is seen holding steady at 5.0%.
Support and Resistance
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
