yesterday the CPI datas from NZD were positive to almost deviation, this has removed the easing concern for RBNZ and hence removed further rate cut in the near future.
Meanwhile, the market continued to quiet risk on sentiment to further boost commodity currencies. Right now AUD is pressured due to the soft inflation data, and it has really put NZD on top of all currencies.
Tier one data in London was the Prelim GDP for UK, it came out as positive than expected and in line with previous. This was a surprise as most economists were predicting a lower GDP due to higher inflation and lower consumption from the effect of GBP devaluation.
This has further pushed the sentiment of GBP for the session, which GBP has been enjoyed a good ride since last week PM May’s speech.
The unemployment claim in U.S came out as negative than expected and previous, although not a big impact data as labour market is still solid.
Later on we will have Tokyo Core CPI and National Core CPI to give us some direction for the economy in Japan.
The only tier one data for tomorrow is the Advance GDP and Core Durable Goods order from USD, both are tradable events and we will expect this catalyst to change the current sentiment of USD to push it up, or continue to pressure it down.
WTI closed higher today with solid green candle.
U.S Yield is unchanged while Gold drop $11 and Dow continued to stand above 20K.
For EUR, although many worries for high inflation if ECB do not tapper the QE soon, however, response from ECB was still firm on their policy. Looking at it logically, Euro is indeed a big family so even though one of the members such as Germany is doing exceptionally well, he/she will still be trapped within the family rules. Because of that, we still hold fundamental bearish view in EUR. The current risk on sentiment also pressured EUR to the downside.
For USD, stock markets had certainty calmed the investors down from the uncertainty of Donald Trump policies. As mentioned, U.S is still a fundamental solid currency with sentimental weakness. The continuation of risk on sentiment will not benefited USD too much as it’s one of the safe heaven currency. However, for long-term perspective, if USD paris dropped to any attractive buying zone, then you can prepare to buy with a longer timeframe to hold.
For CAD, oil market climbed up today but not due to any positive news but from the high of stock market and the current strong risk on sentiment. Right now the future of CAD is still depended on how the NAFTA works out with U.S.
For GBP, no major news on the progress of Brexit and now since it has gone into the route of Parliament, we can expect things to drag out a bit. The Parliament will “debate” the Article 50 Brexit legislation on Jan 31st and Feb 1st. Then bill will be examined from Feb 6th to Feb 8th. Yes like i said, its’ going to be dragged out a bit.
For AUD & NZD, both currencies are benefited from the current strong risk on sentiment with NZD taking the lead from its promising CPI datas yesterday. AUD has stalled a bit due to the soft CPI datas.
For JPY & CHF, both currencies have taken a hit from the current risk on sentiment and will be expected to react to the stock market direction in the opposite way from now on.
yesterday the CPI datas from NZD were positive to almost deviation, this has removed the easing concern for RBNZ and hence removed further rate cut in the near future.
Meanwhile, the market continued to quiet risk on sentiment to further boost commodity currencies. Right now AUD is pressured due to the soft inflation data, and it has really put NZD on top of all currencies.
Tier one data in London was the Prelim GDP for UK, it came out as positive than expected and in line with previous. This was a surprise as most economists were predicting a lower GDP due to higher inflation and lower consumption from the effect of GBP devaluation.
This has further pushed the sentiment of GBP for the session, which GBP has been enjoyed a good ride since last week PM May’s speech.
The unemployment claim in U.S came out as negative than expected and previous, although not a big impact data as labour market is still solid.
Later on we will have Tokyo Core CPI and National Core CPI to give us some direction for the economy in Japan.
The only tier one data for tomorrow is the Advance GDP and Core Durable Goods order from USD, both are tradable events and we will expect this catalyst to change the current sentiment of USD to push it up, or continue to pressure it down.
WTI closed higher today with solid green candle.
U.S Yield is unchanged while Gold drop $11 and Dow continued to stand above 20K.
For EUR, although many worries for high inflation if ECB do not tapper the QE soon, however, response from ECB was still firm on their policy. Looking at it logically, Euro is indeed a big family so even though one of the members such as Germany is doing exceptionally well, he/she will still be trapped within the family rules. Because of that, we still hold fundamental bearish view in EUR. The current risk on sentiment also pressured EUR to the downside.
For USD, stock markets had certainty calmed the investors down from the uncertainty of Donald Trump policies. As mentioned, U.S is still a fundamental solid currency with sentimental weakness. The continuation of risk on sentiment will not benefited USD too much as it’s one of the safe heaven currency. However, for long-term perspective, if USD paris dropped to any attractive buying zone, then you can prepare to buy with a longer timeframe to hold.
For CAD, oil market climbed up today but not due to any positive news but from the high of stock market and the current strong risk on sentiment. Right now the future of CAD is still depended on how the NAFTA works out with U.S.
For GBP, no major news on the progress of Brexit and now since it has gone into the route of Parliament, we can expect things to drag out a bit. The Parliament will “debate” the Article 50 Brexit legislation on Jan 31st and Feb 1st. Then bill will be examined from Feb 6th to Feb 8th. Yes like i said, its’ going to be dragged out a bit.
For AUD & NZD, both currencies are benefited from the current strong risk on sentiment with NZD taking the lead from its promising CPI datas yesterday. AUD has stalled a bit due to the soft CPI datas.
For JPY & CHF, both currencies have taken a hit from the current risk on sentiment and will be expected to react to the stock market direction in the opposite way from now on.