Allan von Mehren
Danske Bank A/S
Market movers ahead
In Greece, anti-austerity party Syriza is poised to win the general election and Greece faces higher uncertainty and volatility.
Inflation is expected to have dropped further into negative territory in the euro area.
US GDP growth remained solid above 3% q/q in Q4 (annualised) supported by strong private consumption.
The Fed is expected to reiterate that it can afford to be patient at this week’s FOMC meeting.
The Danish central bank could be forced to cut interest rate further to stem the appreciation pressure on DKK.
Global macro and market themes
Euro risk assets are heading higher on ECB QE and growth recovery.
Too much doom and gloom – good news from the US and China as well.
The ECB surprise of buying 30-year bonds pushes yields to extremes.
EUR/USD lower short term.
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Editors’ Picks
AUD/USD recovers further toward 0.6800 on risk-recovery
AUD/USD extends recovery toward 0.6800 in Asian trading on Thursday, despite mixed Australian employment data. The Aussie cheers a return of risk appetite, which weighs on the post-Fed US Dollar recovery. All eyes now remain on US economic data for fresh impetus.
USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles
USD/JPY is attacking 143.00 in Thursday's Asian session, reversing sharply from 144.00. The pair pares back gains in tandem with the US Dollar, as the latter's post-Fed recovery falters due to a rebound in risk sentiment. The focus is next on the US data due later today and Friday's BoJ decision.
Gold price regains positive traction amid a modest USD pullback from one-week high
Gold price attracts some dip-buying during the Asian session on Thursday and seems to have stalled its retracement slide from the $2,600 mark, or a fresh all-time peak touched the previous day. The US dollar trims a part of its intraday gains to a one-week high, which turns out to be a key factor lending support to the commodity.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
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