Global Markets:

  • Asian stock markets: Nikkei up 1.40 %, Shanghai Composite and Hang Seng both gained 0.10 %, ASX down 0.20 %
  • Commodities: Gold at $1219.40 (-0.50 %), Silver at $17.04 (-0.40 %), Crude Oil at $59.40 (-0.90 %)
  • Rates: US 10 year yield at 2.159, UK 10 year yield at 1.914, German 10 year yield at 0.679

News & Data:

  • New Zealand Manufacturing Index lowered to 55.2 from 59.3
  • New Zealand Dec ANZ Consumer Confidence Index at 126.5 from 121.8
  • New Zealand Dec ANZ Consumer Confidence Index M/M up 3.9% from -1.3%
  • New Zealand Nov Non-Resident Bond Holdings up 66.5% from 64.8%
  • US House passes $1.1trln bill funding most of government through to Sept 2015, sends measure to Senate for debate 
  • US' Reid: Senate to vote on $1.1trln funding accord in coming days
  • US' Reid: Senate will pass short term funding bridge bill to fund government

Markets Update:

It was a quiet session overall with little data releases/news. The Nikkei bounced, but other major Asian equity indices are mixed. Oil reached a low of $58.80 and is trading around $59.30 heading into the London open. Gold and Silver are down on the day.

EUR/USD consolidated in a 20 pips range overnight. There is talk of good bids ahead of the 1.2350 level and large stops resting through 1.2335. The earlier failure to break above 1.25 suggests we might see bit of range trading in the next few sessions. Bulls will need a clear break above the level for upside momentum to accelerate, while short-term sentiment would likely switch back to negative should the pair drop back below 1.23.

USD/JPY was well-bid at the Tokyo open, reaching a high of 119.20. Local names were then sellers in the later session, which pushed the pair back below the big figure. Selling intensified ahead of the EU open and supply from leveraged names eventually led to a decline to 118.50. Key intraday support noted at 118.25/30. Asia mentioned decent offers at 119.25 and then 119.50.

USD/CAD broke above 1.15 in yesterday’s NY session, but option-related offers pre-1.1550 have capped the topside for now. The small bounce in Oil pushed the pair slightly low, to a low of 1.1530, but there is talk of good demand towards 1.15 and 1.1480. Chart support noted at 1.1448 and then 1.1396 (Dec 9 low), while to the topside, no significant resistance until 1.16 and then 1.1724 (Summer 2009 high). Meanwhile, AUD/USD traded within a 0.8240-80 range overnight. Bids seen towards 0.8220, while better selling interest expect in front of 0.8320.

Upcoming Events:

  • 07:00 GMT – German WPI (0.3 % m/m)
  • 08:00 GMT – Spanish CPI (-0.1 % m/m, -0.4 % y/y)
  • 09:00 GMT – Itlaian CPI (-0.2 % m/m, 0.2 % y/y)
  • 10:00 GMT – Euro Zone Industrial Production (0.1 % m/m, 0.5 % y/y)
  • 12:30 GMT – US PPI (-0.1 % m/m, 1.4 % y/y)
  • 14:55 GMT – US UoM Consumer Sentiment (89.7)
  • 14:55 GMT – US UoM Consumer Expectations (79.8)