An eventless Asian session, with persistent broad based US dollar strength dominating markets. While an overnight rebound in commodities’ prices helped lift the Asian stocks somewhat. However, risk sentiment witnessed a minor-turnaround as investors turned cautious heading into the US president-elect Trump’s first news conference after the elections.
Later in the European session, we have limited economic events on the cards, with the UK manufacturing and industrial production data to take center-stage. Also, we have BOE Governor Mark Carney’s testimony before the Treasury Select Committee. While the NA calendar also offers only the EIA crude inventory data release, as the main risk event for today remains Trump’s presser due at 1600GMT.
Markets would focus specifically on Trump’s comments on fiscal spending, policy reforms and China in order to gauge whether he remains on track to fulfill his campaign promises to ‘make America great again’.
Main topics in Asia
Russia has cut oil production – Kremlin
Russia’s Kremlin spokesperson Dmitry Peskov informed markets that the nation has started cutting oil output in accordance with its agreement with OPEC.
PBOC sets USD/CNY at 6.9235 vs 6.9234
Asian stocks ex-China advance, Trump’s presser eyed
The stocks on the Asian indices had a positive start on Wednesday, and remained mostly higher, following a strong close on the US stocks.
Rumors in Asia of China drastic capital flight measures ahead of Chinese New Year
Livesquawk reports latest rumors doing the rounds in markets, citing that there seems to be drastic capital flight measures implemented by China ahead of Chinese New Year.
Key focus for the day ahead
GBP/USD keeps the negative tone near 1.2160
Today’s docket in the UK economy includes Manufacturing Production, Industrial Production, Trade Balance figures and the GDP Estimate by NIESR. On the USD-side, US president-elect Donald Trump will hold a press conference in the European evening.
EUR/USD attempting gains near 1.0560, Trump in focus
The bulls are seen trying hard to regain the bids above the mid-point of 1.05 handle, with EUR/USD hovering close to session tops as we head into the early European trading.
Goldman Sachs: GBP is 'actionable' and soon set to become even more 'unfashionable’
Analysts at Goldman Sachs published its Macro Markets Strategy report this Wednesday, mainly focused on the GBP outlook in wake of a Hard-Brexit scenario.
Yuan’s next move may depend on Trump’s news conference - CNBC
CNBC carries an article on Wednesday, suggesting that the upcoming Trump’s first news conference post-US elections win will determine the next direction for the Chinese Yuan.
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