FX News Today
- Asian stock markets rallied driven by MSCI and weighted on Bonds.
- The announcement MSCI Inc. that it will increase the weight of Chinese stocks in its global benchmarks also underpinned bourses.
- The strong manufacturing PMI reading out of China, following on the heels of better than feared US GDP readings yesterday, helped to underpin risk appetite.
- The Yen has weakened concomitantly with rising stock markets in Asia.
- German January retail sales much stronger than expected at 3.3% m/m.
- Eurozone HICP inflation seen ticking up to 1.5% y/y from 1.4%.
- EURUSD dropped back from 3-week highs to mid 1.13s.
- USDJPY rallied to 10-week high of 111.80.
- Gold slide on better US GDP, higher yields and stronger Dollar.
Charts of the Day
Main Macro Events Today
- EU Final Manufacturing PMI – They are expected to confirm the overall Eurozone reading at 49.2, which would leave it in contraction territory.
- EU CPI and core – The overall Eurozone HICP is seen ticking up to 1.5% y/y from 1.4%, while core inflation is likely to hold at just 1.1% y/y.
- German jobless numbers – Jobless data is seen rising 1K (median -3K), which should leave the jobless rate at a record low of 5.0%
- Canadian Q4 GDP – GDP for the last quarter of 2018 is expected to slow to a 1.0% pace (q/q, saar) in January from the 2.0% rate of expansion in Q3, reflecting the hit from the oil price plunge during the quarter.
- Canadian December GDP – It is seen coming in flat (0.0%) after the 0.1% decline in November, reflecting the drag on the economy from the oil producing sector.
- US December personal income – It is projected rising 0.5% after a 0.2% rise in November, reflecting strength in December aggregate income.
- US PCE – A -0.3% decline is seen in real PCE in December, following a 0.3% increase in November. Core PCE Price Index is anticipated at 0.2% m/m from 0.1% m/m.
- US ISM Manufacturing PMI – The February ISM is expected to slip to 55.0 in February, but from a robust 56.6 reading in January.
Support and Resistance
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Andria Pichidi
Market Analyst
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