IronFX Daily Commentary by Sakis Paraskevov | 11/01/2016
January 11, 2016 10:08 am
Main points for Today
• China remains the epicenter of the markets • China’s central bank set the daily midpoint rate for the yuan higher for a second day, in an attempt to ease fears that it is trying to weaken its currency to gain a competitive export advantage. • Nevertheless, the Asian equity markets continue to tumble and the carnage seems to have no end. • The dollar pared gains as worries over China kept demand for safe-haven investments, despite a strong US employment report. • Nonfarm payrolls increased 292k in December from an upwardly revised 252k previously, and above expectations of 200k. • Overall, the strong report combined with solid data going forwards could give the bulls a good reason to buy USD. • Today: • Norway: CPI for December is expected to have slowed slightly, but to still remain above the Norges Bank target of 2.5%. market participants are most likely to watch the oil prices as a proxy for the krone’s near-term direction. • Canada: Housing starts for December. • This week: • Tuesday: UK’s industrial production for November. Following the weak construction and manufacturing PMIs, we see an increased likelihood for a soft industrial production figure. Could prove GBP-negative. • Wednesday: China’s trade surplus is forecast to have narrowed somewhat in December, with imports once again expected to have fallen at a faster pace than exports. Falling imports could hurt AUD and NZD. • Thursday: Bank of England monetary policy meeting. Since, the minutes of the meeting are released at the same time as the decision, this gives us the opportunity to get additional insights about members’ views on the UK economic outlook and future decisions, especially with the “Brexit” referendum looming and GBP/USD testing its lowest levels since June 2010. • Friday: US retail sales for December are forecast to have slowed from November.
Main points for Today
• China remains the epicenter of the markets
• China’s central bank set the daily midpoint rate for the yuan higher for a second day, in an attempt to ease fears that it is trying to weaken its currency to gain a competitive export advantage.
• Nevertheless, the Asian equity markets continue to tumble and the carnage seems to have no end.
• The dollar pared gains as worries over China kept demand for safe-haven investments, despite a strong US employment report.
• Nonfarm payrolls increased 292k in December from an upwardly revised 252k previously, and above expectations of 200k.
• Overall, the strong report combined with solid data going forwards could give the bulls a good reason to buy USD.
• Today:
• Norway: CPI for December is expected to have slowed slightly, but to still remain above the Norges Bank target of 2.5%. market participants are most likely to watch the oil prices as a proxy for the krone’s near-term direction.
• Canada: Housing starts for December.
• This week:
• Tuesday: UK’s industrial production for November. Following the weak construction and manufacturing PMIs, we see an increased likelihood for a soft industrial production figure. Could prove GBP-negative.
• Wednesday: China’s trade surplus is forecast to have narrowed somewhat in December, with imports once again expected to have fallen at a faster pace than exports. Falling imports could hurt AUD and NZD.
• Thursday: Bank of England monetary policy meeting. Since, the minutes of the meeting are released at the same time as the decision, this gives us the opportunity to get additional insights about members’ views on the UK economic outlook and future decisions, especially with the “Brexit” referendum looming and GBP/USD testing its lowest levels since June 2010.
• Friday: US retail sales for December are forecast to have slowed from November.
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