Will EU data today challenge GBP upward trend?
January 22, 2018
Europe Market Movements
The GBP has been on an upward trend, with it trading against the USD this morning at 1.3973, up 0.15% from last Friday’s closing rate. It’s also rallying against the EUR, trading this morning at 0.8768, down by 0.62% from Friday. But influential data is out in the EU today, with Zew Survey –Economic Sentiment in Germany and the EU and the European Consumer Confidence figures at 3 PM GMT. Traders will be on the go today, ready to jump in at the right moment.
US Market Movements
The USD continues its downward trend against other major currencies. This morning it’s trading at 1.2464 against the CAD, down from yesterday’s 1.2486. The US government shutdown has ended (temporarily it seems), can the USD be expected to change direction? All traders are studying the World Economic Forum currently taking place at Davos, Switzerland, for hints on possible market movements. Make sure this is in your radar screen.
Asia/Oceania Market Movements
The JPY rose yesterday after the Bank of Japan kept monetary policy unchanged but the USD has recovered some of its losses today, currently trading at 111.061, up by 0.34% from yesterday. The Nikkei extended gains on Tuesday, rising to the highest since November 1991. The MSCI Asia Pacific index went up by 0.8 %, the Hang Seng by 1.3% and Australia’s S&P/ASX 200 by 0.8%, the steepest climb in two weeks. How will the end of the US shutdown affect the markets?
The price of oil continues to ascend with Brent crude at $69.41 yesterday and WTI at $63.99. Warnings against cryptocurrencies continue, with Goldman Sach’s investment management division saying that Bitcoin’s astronomical rise push sit into bubble territory. They added that “cryptocurrencies have moved beyond bubble levels in financial markets, and even beyond the levels seen during the Dutch ‘tulipmania’ between 1634 and early 1637”.
With the US earnings season in full swing Netflix reported on Monday an increase of 2 million subscribers, tripling profits. Shares jumped by 9% in afterhours trading. Traders wait for General Electric’s earnings report tomorrow and Intel and Starbucks on Thursday.
|10:00 GMT||EUR: ZEW Survey – Economic Sentiment|
|11:00 GMT||GBP: CBI Industrial Trends|
|15:00 GMT||USD: Richmond Fed Manufacturing Index|
|23:50 GMT||JPY: Merchandise Trade Balance|