Yesterday the CPI q/q and Trimmed Mean CPI q/q from AUD were largely mixed result to a bit bearish under the expectation. However, it was still largely in line with most economists’ expectation but it did signal a further possibility for RBA to cut rate, although not as fast as next meeting.
The only tier one data today is German Ifo Business climate in London session which came out as negative.
Then we had the crude oil inventories in NY session which came out as large built, more than expected and previous.
WTI is virtually unchanged today, we now have strong oil built up in U.S oil producer V.S strong commitment for oil output cut from OPEC producers. The oil is trading in the range and really decided which direction it’s going to head it.
We also had BOE Carney speaks at 11:05am which was unscheduled before.
Japanese government released a statement regarding their budget deficit which had increased from expectation. Weak consumer spending and lower tax income were few among the reasons. This means Japan is really in no hurry to raise rate or stop bond buying and on the contrary, the easing is still very much alive to further diminish Yen.
Equity market made history today as Dow closed above 20K for the first time, all Europeans and U.S markets are green to signal another strong risk on sentiment which coexisted with many executive orders of Donald Trump. It looks like market has completely digested the new president and now revert back the fundamental of 2017 which is quiet promising, for now.
PM May is going to publish the Brexit plan to the Parliament on Thursday which again is going to further remove uncertainty over the negotiation and the whole Brexit sentiment has really died down a bit by the fact of surging GBP.
Currently the global market is facing a strong risk on sentiment from U.S as Donald Trump so far has fulfilled his election promises, and expectations on his tax cut and fiscal policies will be fulfilled to further boost the market.
The strong currencies are still NZD & AUD, which NZD completely takes the lead as the CPI datas today were very positive although not outside deviation.
GBP is also expected to continue its strength.
USD although acts as one of the safe heaven currency to be pressured in front of this sentiment, but the underlying fundamental is clear that FED will raise rate if the fiscal policies are indeed loosen to heat up the economy. This has reflected in bond yield and USD is also looking to be strong.
The losers are JPY & CHF as the sentiment really pressured both currencies.
CAD will also be hurt if we have strong dollar and unstable oil outlook, but the 2 pipelines in North will certainty help the economy of CAD. We will have to see how the NAFTA goes.
Finally, EUR although previously stated as a strong currency, but if the market continues to heat up then EUR will be lagging to become an unattractive currency.
Yesterday the CPI q/q and Trimmed Mean CPI q/q from AUD were largely mixed result to a bit bearish under the expectation. However, it was still largely in line with most economists’ expectation but it did signal a further possibility for RBA to cut rate, although not as fast as next meeting.
The only tier one data today is German Ifo Business climate in London session which came out as negative.
Then we had the crude oil inventories in NY session which came out as large built, more than expected and previous.
WTI is virtually unchanged today, we now have strong oil built up in U.S oil producer V.S strong commitment for oil output cut from OPEC producers. The oil is trading in the range and really decided which direction it’s going to head it.
We also had BOE Carney speaks at 11:05am which was unscheduled before.
Japanese government released a statement regarding their budget deficit which had increased from expectation. Weak consumer spending and lower tax income were few among the reasons. This means Japan is really in no hurry to raise rate or stop bond buying and on the contrary, the easing is still very much alive to further diminish Yen.
Equity market made history today as Dow closed above 20K for the first time, all Europeans and U.S markets are green to signal another strong risk on sentiment which coexisted with many executive orders of Donald Trump. It looks like market has completely digested the new president and now revert back the fundamental of 2017 which is quiet promising, for now.
PM May is going to publish the Brexit plan to the Parliament on Thursday which again is going to further remove uncertainty over the negotiation and the whole Brexit sentiment has really died down a bit by the fact of surging GBP.
Currently the global market is facing a strong risk on sentiment from U.S as Donald Trump so far has fulfilled his election promises, and expectations on his tax cut and fiscal policies will be fulfilled to further boost the market.
The strong currencies are still NZD & AUD, which NZD completely takes the lead as the CPI datas today were very positive although not outside deviation.
GBP is also expected to continue its strength.
USD although acts as one of the safe heaven currency to be pressured in front of this sentiment, but the underlying fundamental is clear that FED will raise rate if the fiscal policies are indeed loosen to heat up the economy. This has reflected in bond yield and USD is also looking to be strong.
The losers are JPY & CHF as the sentiment really pressured both currencies.
CAD will also be hurt if we have strong dollar and unstable oil outlook, but the 2 pipelines in North will certainty help the economy of CAD. We will have to see how the NAFTA goes.
Finally, EUR although previously stated as a strong currency, but if the market continues to heat up then EUR will be lagging to become an unattractive currency.