New Zealand ANZ Commodity Price Index (MoM) (Dec): +0.7% (prev rev to +3.2% from +2.70%)
Brazil cut Selic rate by 75bps to 13.00% (est. 13.25%, prev. 13.75%)
Dollar loses altitude, Asia shares at 11-week top – RTRS
Oil dips on rising U.S. crude inventories, plentiful global supplies – RTRS
Dollar slumps after Trump offers no details on economic policies – RTRS
The US Dollar weakened sharply after the press conference held by US President-elect Donald Trump. The market was anticipating some details about Trump’s economic plans, but received none, which led to covering of USD long positions.
Heavy selling was seen in USD/JPY, which fell to a low of 114.27 at one point. It recovered slightly later, but ran out of momentum above 115.50 and eventually declined back to 114.40 in Asia.
EUR/USD rallied above 1.06, but once again failed to take out resistance at 1.0620. Key support is now seen at 1.0565/70, and a break below would confirm the third rejection off 1.0620, suggesting the Euro is heading back towards 1.04.
GBP/USD rallied as far as 1.2270 yesterday, but retraced back to 1.2170 in Asia. On-going concerns about a hard Brexit will likely continue to prevent any larger gains in the near-term.
The Australian Dollar is looking strong. AUD/USD rallied from 0.7430 to 0.7470 in Asia, and resistance is now seen in the 0.7500-20 area. A break above would signal a move towards 0.78.
09:00 GMT – Italian Industrial Production
10:00 GMT – Euro Zone Industrial Production
12:30 GMT – ECB Meeting Minutes
13:30 GMT – US Initial Jobless Claims
14:15 GMT – Bank of England Governor Carney speaks