Quiet Markets Persist Into the End of the Week – US CPI Tonight
We had another relatively quiet day in the markets yesterday with the currencies once again trading in familiar ranges. There was one major exception in the Sterling as it experienced a bit of a roller coaster ride while the other currencies were playing on the tea cups! It was hit hard (Cable off over a big fig and EurGbp up 60 pips) during the London session as once again Brexit discussions appeared to be going south in a big way with the UK’s payment proposals still at a deadlock. However, we saw a complete reversal of the move as a further report from Handelsblatt showed that the EU are prepared to come to the table.
Across the rest of the majors, Euro drifted off of recent highs and UsdJpy continued to trade in recent ranges with volatility now down at 2 year lows in the pair. Aud and Nzd maintained a bullish tone as commodities kept up their recent rally against the dollar.
Looking ahead to today’s trading and at the risk of sounding like a broken record it’s another quiet day ahead with very little fundamental releases until the New York session. Traders in Asia will be looking at the RBA Financial Stability Review which is released at 11.30 am and the Chinese Trade Balance numbers which come out at lunchtime. But, the main focus for market participants will be the US CPI numbers at 11.30 pm. As was confirmed by the recent Fed minutes, a lot of attention will be given to this data and strong numbers will be seen as a green light for a December rate hike by many. The retail sales numbers will be released at the same time so could throw a bit of a spanner in the works but in the current environment, the CPI data should take precedence.
Good Luck trading today and if you have any questions or queries, please contact the team at info@sec.rakuten.com.au
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Each day our daily FX Insight comes out with a different city featured in the title picture. We are offering 25 Aud each day for the first FX Insight reader that contacts us at info@sec.rakuten.com.au with the correct identity of that day’s city. This amount will be added to the winners trading account, if you don’t have a trading account one of our friendly staff will, of course, be happy to assist you in setting one up!
Thursday’s City: Washington DC