FX News Today
German and U.K. GfK consumer confidence unexpectedly improved with the EURUSD seeing a minor rally from lows under 1.0850 to near 1.0940 in Monday’s trade. However, price still remains below the 10 day moving average. Meanwhile, the GBPUSD price trades just above the 1.4880 support level at the time of writing.
Crude oil prices remain fragile in the face of unrelenting supply; USOil price is trading higher today with prices just under $36 at the time of writing, the lower USD this morning has supported oil prices.
Gold has been moving higher as a softer U.S. dollar activated short covering. Global stock markets are mixed with strong gains in the U.S., Japan’s Nikkei 225 closing slightly lower, while European stock exchanges closing lower by 1%+. Asian stock markets have closed mostly higher, as U.S. and U.K. stock futures did. This points to gains on European markets at the open after the Monday European market sell off, as the traditional Christmas rally continues.
The U.S. calendar data reports today aren’t likely to have much impact, as attention turns to Christmas and the New Year holidays.
Main Macro Events Today
• U.S. Richmond Manufacturing Index: Analyst expect an improvement to 0.0 from -3.0 in November. The Empire State and Philly Fed are already out and showed mixed headline performance which would indicate another month of depressed sentiment.
• USD Final GDP: Analyst expect Q3 GDP to be revised down to 1.8% from 2.1% in the final report, following 3.9% growth in Q2. Forecast risk: downward, given the huge inventory boost that is being unwound with data revisions. Market risk: downward, as weakness may delay Fed tightening assumptions for 2016.Inventories are expected to be revised down by $10 bln.
• USD Housing Price Index: Analyst expect existing home sales to rise 0.7% to a 5.400 mln unit rate in November following the 3.4% October decrease to 5.360 mln units. Forecast risk: downward, as NAHB declined in November. Market risk: downward, as a run of weaker data could impact rate hike time lines. The pending home sales index should grow by 0.3%.
Disclaimer: 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 purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
EUR/USD mired near 1.0730 after choppy Thursday market session
EUR/USD whipsawed somewhat on Thursday, and the pair is heading into Friday's early session near 1.0730 after a back-and-forth session and complicated US data that vexed rate cut hopes.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.