Dollars Down Under benefit from China-US truce

Today's Highlights

  • Yen and US Dollar weaken

  • Brexit debate sets direction for Pound

  • UK housing prices fall


Current Market Overview

The Australian and New Zealand Dollars are the strongest performers for today, as the markets seem to be happy with positive developments in the US-China trade negotiations. The idea of a 60-day extension to the trade truce is certainly welcomed.

Yen and US Dollar weaken

Data from both Japan and Germany showed both countries narrowly avoided technical recession at the end of last year. Nevertheless, such positive sentiment has not been reflected in the markets. For now, the Yen is the weakest currency for today, followed by the US Dollar.

Brexit debate sets direction for Pound

The direction of the Pound will be determined by the Brexit debate in the House of Commons today. More on that later…

UK housing prices fall

The latest UK house price survey from the Royal Institution of Chartered Surveyors (RICS) balanced dropped to -22 in January, below the expectation of -20. It seems that both buyers and seller activity continues to slip. London and the South East are leading price weakening at a national level. Because of the drop in sales, the lettings market is faring better, however, with demand rising. So, some good news for overseas property buyers in the UK…

The data diary for today

Eurozone Gross Domestic Product (GDP) and employment data will be the focus during European trading.

Later in the day, US Retail Sales, Producer Price Indices, Jobless Claims and Business Inventories will be released. Near neighbours, Canada, will also release their manufacturing sales data and New Housing Price Index.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.