UK inflation and Phase One trade deal amongst market movers today – Danske Bank


Danske Bank analysts point out that they are looking very much forward to the signing of the US-China phase 1 trade deal although the signing in itself is not a huge market mover.

Key Quotes

“The signing ceremony is scheduled to take place in the White House at 17:30 CET. The 86-page agreement will also be released today. The US and China have said that now the phase 1 trade deal has been finalised, they will get started with phase 2. We think those negotiations are going to be more complicated and think there is a 50% chance of a permanent deal ahead of the US presidential election. The good news is that we have gone from a period with trade war escalation to now de-escalation and we do not think US President Trump dares to U-turn again, as the trade war was hurting the US economy, in particular the to him very important manufacturing sector, hence damaging his re-election chances.”

“We also get UK inflation data for December today. Due to the high uncertainty and weak growth, focus has turned away from inflation, but if inflation comes in lower than expected, it could add fuel to the recent repricing of the Bank of England ahead of the upcoming meeting on 30 January. CPI core was 1.7% y/y in November and is expected to remain unchanged.”

“In the euro area, industrial production data for November is due out at 11:00 CET, which will be interesting given the weakness we have seen in the European manufacturing sector in 2019.”

“Today's key release in the Scandis is the Swedish inflation data for December. We expect CPIF and CPIF excluding energy to print 1.6% y/y and 1.7% y/y, respectively, which is close to one-tenth of a percentage point below the Riksbank's forecast.”

“The US empire manufacturing index for January is due out at 14:30 CET.”

“We also have some Fed speeches and the Fed Beige Book although we do not expect neither of them to be very interesting.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD near daily lows with mixed US data

The EUR/USD pair continues trading just above the 1.1000 level, as US Durable Goods Orders rose by 2.4%, largely surpassing the market’s expectations, although core readings plummeted in the red.

EUR/USD News

GBP/USD unable to recover, barely above 1.3000

GBP/USD trades a handful of pips above the critical 1.3000 figure as looming BOE and Brexit weigh on market mood while the dollar remains the strongest.

GBP/USD News

Bitcoin moving on the razor edge

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. 

Read more

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

Oil News

USD/JPY Forecast: Consolidating at lows, bearish

Coronavirus-related fears and upcoming first-tier event keeping investors in cautious mode. US Durable Goods Orders seen posting a tepid advance in December. USD/JPY at risk of resuming its decline once below 108.65.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures