Market movers today

  • It will be a quiet day today in terms of major economic data releases. Among other important data releases later this week, the December jobs report in the US is due out on Friday.

 

Selected market news

Over the weekend, PMI manufacturing figures in China for December were released. NBS PMI manufacturing December figures came out at 51.4 (slightly below consensus at 51.5) from 51.7 in November, having increased quite a lot in November. PMI from both the official NBS and the private Caixin index have been strong recently. While we look for some slowing of the Chinese economy in 2017, we expect it to remain strong in the short term, as a strong housing market and infrastructure boost in 2016 have yet to peak. There are early signs that the regional tightening towards housing is starting to work. The timing of the peak of the cycle is uncertain but we expect it to be in Q4/Q1.

On Friday last week, Norges Bank announced daily NOK purchases in January of 1,000m, i.e. an increase from the December pace of NOK900m. The purchases are related to the fiscal rule. The rise in purchases is not a big surprise as the 2017 rise in the fiscal use of petroleum funds together with lower oil revenues require Norges Bank to transfer a larger NOK amount from the petroleum fund and the State's Direct Financial Interest (denominated in FX). While the NOK purchases are not aimed at strengthening the NOK, the larger use of ‘oil money' is NOK positive and is one among several factors suggesting EUR/NOK will end 2017 lower than the current spot.

 

Download The Full Daily FX Market Commentary

This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector.
This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange.
Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex Analysis

Editors’ Picks

EUR/USD: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.

EUR/USD News

GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex Majors

Cryptocurrencies

Signatures