Good morning
Risk-sentiment turned negative once again this Friday, following a rebound during yesterday’s US session. Safe-havens are back in demand reducing the appetite for risk amid negative equities and falling oil prices. As a result, the dollar-yen pair continues to benefit from risk-averse conditions, now breaking lower near 117.70, after failing to sustain above 118 handle. EUR/USD also extended its post-ECB minutes recovery and now looks to test 1.09 handle as the demand for low-yielding currencies rise to fund the investments in higher-yielding/ risk assets.
Gold price dropped below 1080 today despite the Feds comments on slowing inflation that might affect rate rises. Oil benchmarks on both sides of Atlantic fell back in the red and resumed their dominant bear trend in Asia, reversing the bounce seen on Thursday.
A very light data session is first up so the focus today is likely to remain on a host of US macro data due to be released during the NY session (13:30 GMT). The US retail sales, PPI and consumer sentiment data will remain the main highlight, with the retail trade volumes expected to decline 0.1% m/m, deteriorating from still marginal growth of 0.2% in November. While the flash University of Michigan (UoM) confidence survey (15:00 GMT) might marginally improve to 93.0 points, from 92.6 in December.
A quick reminder, the US observe Martin Luther King Day on Monday 18 January. FX markets remain open, although less liquid, with precious metals closing early (12:30 NYC).
Good luck and have a great weekend.
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