Global Markets:
- Asian stock markets: Nikkei up 0.26 %, Shanghai Composite lost 0.27 %, Hang Seng rose 0.56 %, ASX 200 up 0.12 %
- Commodities: Gold at $1344.40 (0.70 %), Silver at $17.42 (1.63 %), WTI Oil at $64.50 (0.31 %), Brent Oil at $69.97 (0.14 %)
- Rates: US 10-year yield at 2.55, UK 10-year yield at 1.33, German 10-year yield at 0.51
News & Data:
- (AUD) MI Inflation Gauge m/m 0.1 % vs 0.2 % previous
- NZD) FPI m/m -0.8 % vs -0.4% expected
- (JPY) M2 Money Stock y/y 3.6% vs 4.0 expected
- (USD) Business Inventories m/m 0.4% vs 0.4% expected
- (USD) IBD/TIPP Economic Optimism 55.1 vs 52.3 expected
- (USD) CPI m/m 0.1% vs 0.1% expected
- (USD) Core CPI m/m 0.3% vs 0.2% expected
- (USD) Core Retail Sales m/m 0.4% vs 0.3% expected
- (USD) Retail Sales m/m 0.4% vs 0.5% expected
- Dollar index wallows at three-year lows, euro buoyed by ECB taper hopes
- Oil near three-year highs on output cuts despite rising North American rig count- RTRS
CFTC Positioning Data (Week ending Dec 12, 2017)
- EUR long 145K vs 128K last week. Longs increased by 17K
- GBP long 26K vs 16 long last week. Longs increased by 10K.
- JPY short 126K vs 122 short last week. Shorts increased by 4K
- CHF short 22K vs 16K short last week. Shorts increased by 6K
- CAD long 17K vs 15K long last week. Longs increased by 2K.
- AUD long 5K vs 20K short last week. Longs increase by 25K
- NZD short 11K vs 17K short last week. Shorts decreased by 6K
Markets Update:
Most Asia – Pacific markets opened on a positive note hitting record highs on Monday morning following a strong US lead from last Friday boasting a best start to a year since 2003. Wall Street was on a roll as the fourth-quarter earnings season kicked off with solid results from banks and robust retail sales, driving investor optimism about economic growth. The U.S. dollar retreat continued as investors priced in the risk of tighter policies elsewhere in the developed world.
USDJPY opened lower for the day as the Yen gained close to 0.2 percent against the US Dollar. Currently the USD is seen trading around above 110.80 yen recovering from session lows of 110.58. The Nikkei stock rose 0.28 percent as technology and financial names rose early in the session. Automakers proved to be a mixed picture. Large financial companies continued to benefit from higher bond yields.
EURUSD was marginally up for the day currently seen trading around 1.2215 as the EUR rose 0.1 percent against the US Dollar. This is following a 1.4 percent rise on Monday. The dollar index, which tracks the dollar against a basket of currencies slipped 0.3 percent to 90.72 after falling 0.9 percent last week, ending around the weakest since September. The yield on 10-year Treasuries increased two basis points to 2.48 percent Friday. The yield on 10-year Treasuries was 2.55 percent at Friday’s close, up about seven basis points for the week.
AUDUSD opened the week on a positive note rising over 0.4 percent, extending their gains against the dollar. Currently the Aussie dollar is priced at 0.7950 against the US Dollar. Australia’s 10-year yield was at 2.77 percent, up about two basis points from Friday’s close. Likewise, the Kiwi was marginally up against the US Dollar and is currently seen trading above 0.7265.
Upcoming Events:
- All Day – (USD) Bank Holiday
- 10:00 GMT – (EUR) Trade Balance
- 18.15 GMT – (GBP) MPC Member Tenreyro Speaks
- 21:00 GMT – (NZD) NZIER Business Confidence
The Week Ahead:
Tuesday, January 16th
- 07:00 – (EUR) German Final CPI m/m
- 07:45 – (EUR) French Gov Budget Balance
- 09:30 – (GBP) CPI y/y
- 10:00 – (EUR) Italian Trade Balance
- 17:00 – (CHF) SNB Chairman Jordan Speaks
- &more…
Wednesday, January 17th
- 10:00 – (EUR) Final CPI y/y
- 11:45 – (GBP) MPC Member Saunders Speaks
- 14:15 – (USD) Industrial Production m/m
- 15:00 – (CAD) BOC Rate Statement
- 16:15 – (CAD) BOC Press Conference
- 21:30 – (USD) FOMC Member Mester Speaks
- &more…
Thursday, January 18th
- 08:00 – (EUR) German Buba President Weidmann Speaks
- 13:30 – (CAD) ADP Non-Farm Employment Change
- 13:30 – (USD) Building Permits
- 13:30 – (USD) Unemployment Claims
- 16:00 – (USD) Crude Oil Inventories
- &more…
Friday, January 19th
- 07:00- (EUR) German PPI m/m
- 08:15 – (CHF) PPI m/m
- 09:00 – (EUR) Current Account
- 09:30 – (GBP) Retail sales m/m
- 13:30 – (CAD) Manufacturing Sales m/m
- 15:00 – (USD) Prelim UoM Consumer Sentiment
- &more…
