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
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.