The spotlight is on Chinese data and the currency
Jan 03, 2016 23:23 pm UTC| Commentary
The markets attention will likely remain on the CNY, given that the Chinese authorities have signalled that they will allow the currency to fall more against the USD. The recent announcement of the launch of the CFETS CNY...
SEK and CHF: Two very different outlooks
Jan 03, 2016 23:02 pm UTC| Commentary
Despite Riksbank Governor Ingves talking over the holiday period about downside risks to inflation from rapid currency appreciation, Swedens economy easily justifies a stronger SEK. Indeed, this should be confirmed in this...
Jan 03, 2016 22:41 pm UTC| Commentary
A broadly range-bound AUDUSD is expected in the near term, as pressures on the currency from commodity weakness are partly offset by reduced rate cut prospects due to modestly improving domestic conditions. A marginally...
Canada's employment report and PMI in focus
Jan 03, 2016 22:18 pm UTC| Commentary Economy
Recent economic data have surprised to the downside as the Canadian economy registered no growth in October and showed flat retail sales in real terms. The lack of momentum points to a lacklustre growth in Q4, and the...
Global factor to continue to drive USDJPY
Jan 03, 2016 22:00 pm UTC| Commentary
Since the Bank of Japan (BoJ) unexpectedly supplemented its QQE program on 18 December meeting, USDJPY has been trading heavily at 120-122. In addition to the disappointment on the BoJ, a lack of upward momentum in the USD...
Mixed activity indicators to keep downward pressure on sterling
Jan 03, 2016 21:45 pm UTC| Commentary
Likely mixed December PMIs will be the focus for GBP this week and include manufacturing (Monday; consensus: 52.8; last: 52.7), construction (Tuesday; consensus: 56.0; last: 55.3) and services (Wednesday: consensus: 55.6;...
Low inflation to encourage expectations of further ECB action
Jan 03, 2016 21:31 pm UTC| Commentary Central Banks
Euro area headline and core December inflation (Tuesday) will be the focus for the EUR, both are expected to increase slightly, to 0.4% y/y (last: 0.2%) and 1.0% y/y (last: 0.9%), respectively, but remain well short of the...