Macro Events & News

FX News Today

European Fixed Income Outlook: Asian stock markets moved mostly higher led by industrial and tech stocks and the Treasury yields climbed as investors nervously eye the risk of a U.S. government shutdown, as the federal spending authority is set to expire today, which weighed on the dollar. The Yen advanced, but the Nikkei still managed a 0.19% gain and the CSI 300 is up 0.50%. FTSE 100 futures are fractionally higher, U.S. futures marginally in the red. Core EGB yields climbed with Treasury yields yesterday, but peripherals outperformed and Eurozone spreads narrowed amid signs that the ECB remains very cautious in its approach to changes in the guidance, even as hawks slowly gain the upper hand. Today’s calendar has U.K. retail sales and Eurozone current account and BoP data after PPI numbers at the start of the session.

FX Update: The dollar has traded softer on U.S. political concerns, though has remained above recent trend lows versus the yen, euro and most other currencies. The narrow trade-weighted USD index (DXY) is down 0.2%, making a low at 90.33 and swinging the 37-month low of Wednesday at 90.14 back into scope. The House of Reps passed the stopgap funding bill yesterday, and the vote now goes to the Senate, which has delayed its vote until later today and where there remains significant opposition to the bill. Republicans have been making amendments to the bill in an attempt to entice Democrat votes, but Democrats signalled that they have enough Senate opposition to stop the bill, which does not give sufficient concessions to them on immigration, government spending and other issues. According to the Washington Post, 39 Democrat and at least two GOP Senate members are known to be in opposition, leaving the bill short of the 60 votes needed to advance. This will be the dominant focus for markets today for market participants. Should the vote fail, government agencies will start shutting down from tomorrow — a scenario that would likely spark heavy dollar selling.

Charts of the Day

 Main Macro Events Today        

  • US Partial Government Shutdown
  • Swiss Product and Import Prices  –  should fall to a 0.4% in December after November’s 0.6%.
  • US Retail Sales  – December retail sales expected to show a decline of 0.8% m/m (median -0.6% m/m), which would correct some of the 1.1% m/m gain that was seen in November.
  • Canadian Manufacturing Sales – manufacturing shipment values expected to rise 1.9% m/m after the 0.4% dip in October.
  • Prelim UoM Consumer Sentiment – expected to rise to 97.0 after the index slid 0.8 points to 95.9 in December, supported by the bull run in equities and the passage of the tax bill.
  • FOMC Member Quarles Speech

Support and Resistance Levels

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Andria Pichidi

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.