EUR/USD's Upside is Capped Around 1.0942

Markets Yesterday’s most striking market move happened in the gas market. Europe’s main reference, the Dutch TTF future, dropped more than 14% to the lowest level since September 2021 (55.45 €/MWh). Well-filled storage sites and the up until now very mild winter explain the consistent downtrend over the past months. Breaking through key support at […]

USD/JPY – Calm Before the Storm?

The Japanese yen is in calm waters on Tuesday, as the Bank of Japan’s two-day meeting starts today. In the European session, USD/JPY is trading at 128.76, up 0.18%. Markets eye BOJ meeting The markets are keeping a close eye on the BOJ meeting. The central bank shocked the markets at the December meeting with […]

EUR/USD Drifting, Eurozone Inflation Next

The euro continues to drift this week and is trading close to the 1.0820 line. This follows last week’s sharp gains of 1.8%. German inflation falls – will eurozone follow suit? German Final CPI came in at -0.8% m/m in December, matching the forecast and unchanged from November. The annual average in 2022 was 7.9%, […]

China Smashed Expectations for the Economy, But that Hasn't Stopped the Yuan's Correction

An extensive package of statistics from China showed a much better economy than the average analysts had expected. But this set of economic surprises failed to affect the renminbi, which is falling for a second day, having lost 1.4% in the meantime. China’s economy grew by 3% last year (2.7% was expected). GDP was virtually […]

Canada: Another Welcome Cooling in Inflation in December

Consumer price inflation continued to come off the boil in December, up 6.3% versus a year ago (y/y), from 6.8% in November. The decline in energy prices gathered speed in December, as prices at the pump fell 13.1% month-on-month (m/m). Gasoline prices are now only 3% higher than a year ago. Food inflation also cooled […]

Sunset Market Commentary

Markets US markets reopened after the long weekend (Martin Luther King Day), but didn’t provide any new directional narratives for global trading. Core US and European yields this morning tried to build on a tentative bottoming out process. Still, the feeling was/is that any sustained rise in yields remains difficult for now. Early in US […]

Canadian Dollar Shrugs as CPI Declines

It has been a quiet day in the currency markets, and the Canadian dollar has followed suit. In the North American session, USD/CAD is trading at 1.3386, down 0.15%. Canada’s inflation heads lower Inflation in Canada slowed to 6.3% y/y in December, down from 6.8% a month earlier and matching the consensus. On monthly basis, […]

UK Earnings Rise Alongside Employment Drop

The UK market is showing further signs of a reversal in the labour market towards a fall in employment, but the increased pace of wage growth is keeping a close eye on the Bank of England’s actions and comments. Jobless claims rose by 19.7K in December after climbing by 16.1K a month earlier, a logical […]

An Improving Outlook for the Eurozone Economy and Currency

Summary Recent developments hint at some improvement in the outlook for what will still be a challenging 2023 for the Eurozone economy. A sharp drop in energy prices is driving a slowdown in headline inflation. Against this backdrop, real household incomes and consumer spending could be more resilient than previously expected and, indeed, Eurozone PMI […]

Will Aussie Get a Boost from Labour Market?

Australia’s employment report for August is scheduled to be released on Thursday at 01:30 GMT, and it is believed that these data will attract some interest. Ahead of the data, the Australian dollar fell near $0.6900 after a significant pullback off the five-month high around $0.7000. While the domestic economy is robust, the country’s heavy exposure to China is giving investors another reason to be bullish on the currency […]