Forex Today: Stuck to tight ranges ahead of a Big week, Eurozone CPI – Up next
Forex today experienced a quiet start to a Big week ahead, with no relevant macro news out of the Asia-pac regions and hence, most majors stuck to tight trading ranges. The US dollar consolidated around 97.50 against its major peers, with the 19-month tops still on sight amid looming trade and global economic slowdown worries. The USD/JPY pair staged a solid comeback and regained the 113.50 handle amid positive Japanese equities and S&P 500 futures. Meanwhile, the Antipodeans traded on the back foot, despite a rally in iron-ore futures, as markets remained cautious ahead of this week’s Fed rate hike.
Both crude benchmarks traded a tad firmer while gold futures on Comex moved-off 10-day lows, but treaded water near 1241 levels amid higher Treasury yields.
Main Topics in Asia
Australia MYEFO: $5.2bn deficit, a $9.3bn upgrade - Westpac
UK housing prices, consumer spending on the decline as Brexit weighs - Reuters
PBOC: Will further improve monetary policy transmission channel
Oil weak-footed, WTI hobbled beneath $51.50
France’s Ferrand: French budget deficit is likely to reach 3.4 % in 2019
Italian coalition leaders have reached budget accord - ANSA
BIS says recession hunters should focus on the state of the financial cycle - Reuters
UK PM May attacks second Brexit referendum proposal - Bloomberg
South Korea trims 2018, 2019 GDP outlook
Ireland’s Coveney: Delay to Brexit if UK wants a new deal - BBC
Key Focus Ahead
Following a data-empty Asia-pac calendar, the EU docket appears busier, with the Eurozone trade and final CPI figures due at 1000 GMT while the UK sees no economic releases ahead of the BOE policy announcement this week. Around 10.30 GMT, the Bundesbank, Germany’s central bank, the monthly economic report will be published that will offer fresh insights on the German economic growth prospects.
In the NA session, the NY Empire State manufacturing index will drop in alongside the Canadian foreign securities purchases data at 1330 GMT, which is expected to virtually have no impact on the markets. The US docket remains data-light at the start of FOMC week.
EUR/USD: Focus on risk sentiment
The American dollar could continue to draw bids, sending the EUR/USD pair lower toward the recent low of 1.1215 if the global equities remain risk-averse on mounting global growth fears.
GBP/USD heads into the new week trading south of 1.2600
A new week sees little data early on for the GBP and plenty of Brexit headlines to gum up the wheels for bullish hopefuls.
Week ahead: Fed rate hike looms but long pause could follow
Some of the key data releases in the coming week include: German Ifo Business Climate and US Building Permits and Housing Starts on Tuesday; UK and Canadian CPI estimates, and late in the day, New Zealand GDP on Wednesday …
RBA minutes: Watch the tone around housing - ANZ
Analysts at Australia and New Zealand banking group offer a sneak peek at what to expect from Tuesday’s Reserve Bank of Australia’s (RBA) December monetary policy meeting minutes due at 0030 GMT.
WTI exposed to serious downside risks – Goldman Sachs
Analysts at Goldman Sachs are out with their technical outlook on the US oil (WTI), as we head into a new trading week, pointing to serious downside risks.