FX News Today
- USDJPY has posted a six-day high at 109.00. Yen crosses have also remained buoyant amid a backstop of re-established risk appetite in global markets, in turn feeding an outperforming bid in Japanese equity markets, while the Dollar has concurrently firmed up a tad against most currencies after descending yesterday.
- 10-year Treasury yields are down -1.1 bp at 2.685% while 10-year JGB yields rose 1.8 bp to -0.08%.
- Asian bond as well as stock markets traded mixed, as the focus remains on US-China trade talks.
- A weaker Yen helped Japanese markets to outperform and Topix and Nikkei are up 0.39% and 0.82% respectively. The Hang Seng meanwhile is unchanged, CSI 300 and Shanghai Comp are down -0.23% and -0.30% respectively, while the ASX closed with a gain of 0.69% and US and European stock futures are also moving higher. The front end WTI future is trading at USD 48.54 per barrel.
- Markets look a little less committed presently, wanting specifics from the ongoing US-China trade talks and a break in the partial government shutdown, the consequences of which are becoming more evident as time ticks on.
- The Trump administration expressed optimism of a “reasonable” deal and news that China dispatched one of Xi’s top aids to the low level negotiations in Beijing underpinned hopes of progress. The US Secretary of Commerce said yesterday that a deal can be reached that “we can live with.”
- Meanwhile US President Trump’s TV address today will be watched closely with investors hoping for clues on the possible end to the government shutdown.
Charts of the Day
Main Macro Events Today
- EU Business Climate Indicator – Business Climate is expected to have decreased to 0.99 in December, compared to 1.09 in November.
- Canadian Trade Balance – The Canadian trade deficit is expected to have increased to $1.95 billion, compared to $1.17 billion in October.
Support and Resistance
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Dr Nektarios Michail
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