Today was another usual quiet Monday without any tier one data to drive the market.
The London session had very little movement all the way until the end of NY session.
Later in Asian session we had Chinese CPI & PPI which all came out better than previous and expected number, it’s in line with all the positive Chinese datas previously from Trade Balance to GDP.
The oil market closed low today regardless of the positive news from OPEC compliance as we mentioned in our previous video.
Although oil market is looking good fundamentally for near term, the demand for oil is still weak especially from the emerging market, notably India due to last year’s currency crunch.
The biggest news today was the meeting between Trump and Trudeau, and as expected the result was also quiet friendly especially more a bullish sentiment for CAD as Trump differentiates the difference between trading with Canada and trading with Mexico where one is more of a “fair trade”.
This is also a fact that U.S & Canada trade has always been largely balanced, unlike U.S and Mexico trade.
So looks like NAFTA will be “tweaked” instead of chopped.
For EUR
Greek debt negotiation continues and the political battle between IMF and ECB is the main headline. Although the bonds are set to expire in summer, but remember Greece also went bankrupt in 2015 which also caused panic selling over EUR - we might have that again this year on top of all the other panic political events in Eurozone.
Again, EUR has remained the weakest currency both fundamentally and sentimentally now.
For USD
The sentiment has taken a shift since last week due to the softer tone of Donald Trump. The 2 consecutive meeting with Abe and Trudeau all showed his attitude for working together instead of creating enemies, unlike whatever he’s said during the campaign.
The NY FED has raised up the 1 year inflation expectations from 2.8% to 3%, this highest since summer 2015.
Yellen is due to speak tomorrow and market can react greatly to price in the possible rate hike in March.
USD has remained to be fundamentally strong currency and as long as we don’t have negative sentiment lies ahead of it, USD is on a one way street up.
Michael Flynn also resigned today over the Russia contacts issue, this is a good sentiment for the White House and USD as well.
For CAD
The press conference today has boosted new confidence into the tie between U.S and Canada. As mentioned, NAFTA and trading with U.S is a much important issue for Canada, so as long as the trading relationship can continue, and with the positive news from OPEC, on top of all the positive fundamental datas from Canada, all these elements have contributed to a stronger CAD.
For GBP
Not much major news today for Brexit, the positive fundamental datas last Friday continued to fuel up GBP.
For AUD
The positive Chinese datas continue to support AUD, the high commodity price, Chinese growth and carry trade with Yen especially during the risk on sentiment we have now all contributed to a higher AUD.
The future path is still unknown as all 3 factors (commodity price, China growth and weak Yen) are unstable for long-term, but for now AUD is looking stronger than all other currencies.
For NZD
Not much major news today but the current risk on sentiment has helped NZD especially from the large selling of last week. We should see more NZD recovery for this week.
For JPY
The marke has calmed down since the meeting between Trump and Abe and now resumed back to risk on sentiment which will continue to pressure Yen - good for the Japanese economy but bad for the currency holder.
For CHF
Not much major news, fundamentally still bearish and sentimentally bearish for now due to the risk on sentiment. Be careful for any further negativity in Eurozone as this will increase the safe haven inflow into Swiss Franc.
Today was another usual quiet Monday without any tier one data to drive the market.
The London session had very little movement all the way until the end of NY session.
Later in Asian session we had Chinese CPI & PPI which all came out better than previous and expected number, it’s in line with all the positive Chinese datas previously from Trade Balance to GDP.
The oil market closed low today regardless of the positive news from OPEC compliance as we mentioned in our previous video.
Although oil market is looking good fundamentally for near term, the demand for oil is still weak especially from the emerging market, notably India due to last year’s currency crunch.
The biggest news today was the meeting between Trump and Trudeau, and as expected the result was also quiet friendly especially more a bullish sentiment for CAD as Trump differentiates the difference between trading with Canada and trading with Mexico where one is more of a “fair trade”.
This is also a fact that U.S & Canada trade has always been largely balanced, unlike U.S and Mexico trade.
So looks like NAFTA will be “tweaked” instead of chopped.
For EUR
Greek debt negotiation continues and the political battle between IMF and ECB is the main headline. Although the bonds are set to expire in summer, but remember Greece also went bankrupt in 2015 which also caused panic selling over EUR - we might have that again this year on top of all the other panic political events in Eurozone.
Again, EUR has remained the weakest currency both fundamentally and sentimentally now.
For USD
The sentiment has taken a shift since last week due to the softer tone of Donald Trump. The 2 consecutive meeting with Abe and Trudeau all showed his attitude for working together instead of creating enemies, unlike whatever he’s said during the campaign.
The NY FED has raised up the 1 year inflation expectations from 2.8% to 3%, this highest since summer 2015.
Yellen is due to speak tomorrow and market can react greatly to price in the possible rate hike in March.
USD has remained to be fundamentally strong currency and as long as we don’t have negative sentiment lies ahead of it, USD is on a one way street up.
Michael Flynn also resigned today over the Russia contacts issue, this is a good sentiment for the White House and USD as well.
For CAD
The press conference today has boosted new confidence into the tie between U.S and Canada. As mentioned, NAFTA and trading with U.S is a much important issue for Canada, so as long as the trading relationship can continue, and with the positive news from OPEC, on top of all the positive fundamental datas from Canada, all these elements have contributed to a stronger CAD.
For GBP
Not much major news today for Brexit, the positive fundamental datas last Friday continued to fuel up GBP.
For AUD
The positive Chinese datas continue to support AUD, the high commodity price, Chinese growth and carry trade with Yen especially during the risk on sentiment we have now all contributed to a higher AUD.
The future path is still unknown as all 3 factors (commodity price, China growth and weak Yen) are unstable for long-term, but for now AUD is looking stronger than all other currencies.
For NZD
Not much major news today but the current risk on sentiment has helped NZD especially from the large selling of last week. We should see more NZD recovery for this week.
For JPY
The marke has calmed down since the meeting between Trump and Abe and now resumed back to risk on sentiment which will continue to pressure Yen - good for the Japanese economy but bad for the currency holder.
For CHF
Not much major news, fundamentally still bearish and sentimentally bearish for now due to the risk on sentiment. Be careful for any further negativity in Eurozone as this will increase the safe haven inflow into Swiss Franc.