Market Review for January 12, 2016

Source:Vinson Financials Broker (Review and Forex Rebates Up to 85%)

GBPUSD hit a fresh low of 1.4482 (at the time of writing) after the disappointing Manufacturing Production data at 0.4% that missed the estimate of 0.1%, Industrial Production m/m was also lower than expected at -0/7%. All these in a risk aversion environment that continue today due to recent developments in China. Crude oil is also trade near historic low near 31 USD per barrel forcing commodity currencies like CAD and NZD to trade lower. More specific the USD/CAD traded above the 1.4260 level and the NZDUSD trade near the 0.6525 area but retrace now to 0.6550. All the above can be justified from USD strength as well, where we had also the recent comments form Atlanta Fed president Dennis Lockhart that noted that it’s helpful to look at the real economy of the United States as opposed to the financial economy and ask if something is fundamentally wrong he also said there was no serious imbalances that made the US economy vulnerable to external shocks. Furthermore he still favoured continuation of tightening of monetary policy later on this year.

During Asian session the markets was stabilizing and stocks showed some profits. In regards to economic releases we had so far the Japan’s Current Account at 1.42 trillion, the Bank Lending y/y at 2.2%, the Economy Watchers Sentiment at48.7 and the Consumer Confidence at 42.7 later on the BOJ governor Kuroda will speak. New Zealand released the ANZ Commodity Prices m/m at -1.8%

Later on we also expected the BOE governor Carney speech that may move the market.

View our full economic calendar for a daily roundup of major economic events.

Data releases to monitor:

JPY:        BOJ Gov Kuroda Speaks

GBP:      BOE Gov Carney Speaks

USD:      NFIB Small Business Index, FOMC Member Fischer Speaks, JOLTS Job Openings