USD rises pending State of Union address
January 30, 2018
Europe Market Movements
The GBP has started the week with sharp losses, falling against the USD from 1.4149 yesterday to 1.4024 this morning. Is this a return to ‘the real world’ after last week’s highs? Time will tell; but in the meantime, traders are eyeing today’s speech by the Governor of the Bank of England. The EUR is also trading lower this morning, falling against the CAD from 1.5337 to 1.5270 this morning and against the USD from 1.2428 to 1.2352. On the radar, today’s events which might affect the Eurocurrency.
US/Canada Market Movements
USD traders wait expectantly for President Trump’s State of the Union speech in the early hours of Wednesday morning (GMT) and for crucial economic data tomorrow. In the meantime, the USD Index is up this morning by 0.21%. Watch out for the possible effects of this afternoon’s API Weekly Crude Oil Stock (21:30 GMT), on the CAD.
Asia/Oceania Market Movements
Australia’s business conditions rose to 13 in December, hitting a 5-month high. The AUD rose to 0.8078 against the USD by 6:40 AM GMT but falling to 0.8058 by 7:10 AM GMT. It also rose against the JPY but by 7:13 AM GMT it had fallen to 87.6370. Don’t miss Australia’s consumer price index due for release tonight.
Oil prices have fallen, with Brent below $69 a barrel for the first time in six days and WTI at $64.68. Prices may be in for volatility today with the release of the API Weekly Crude Oil Stock.
Asian stocks have retreated from record highs today, with the MSCI down by 1.1%, Australian stocks falling by 0.9%, Kospi by 1% and the Nikkei by 1.4%. Analysts expect losses today in the FTSE, Germany’s DAX and France’s CAC. It remains to be seen whether the President’s State of the Union address does anything to the markets.
|10:00 GMT||EUR: Gross Domestic Product: Consumer Confidence|
|13:00 GMT||EUR: Harmonized Index Consumer prices|
|15:30 GMT||GBP: BOE Governor Speaks|
|02:00 GMT+1||USD: State of the Union address|