What is going to affect market movements today? Get insights about market trends with HotForex’s 11 January Market Moving Fundamental Events.
11 January, HotForex –Asian stock markets are mostly slightly lower, yields are coming down after the sharp move higher in recent days and 10-year JGBs shed -1.1 bp while Treasury yields are down 2.0 bp at 2.537%. Global equity indices have reached levels that raised concerns of overheating, while a number of bond auctions added to the uptick in yields yesterday.
European Market Outlook
But while Germany under-subscribed 10-year auction yesterday spooked investors, strong demand in the USD 20 bln 10-year Treasury auction helped to calm nerves and saw yields heading sound again. Losses on Asian stock markets meanwhile were modes.
The Nikkei closed down -0.33%, U.S. futures are narrowly mixed and UK100 futures are moving higher and with the EUR holding below 1.20 against the Dollar, the GER30 may be able to recover somewhat after under-performing yesterday, as full year 2017 GDP estimates are likely to show very strong growth, while Bund futures are likely to open higher.
The dollar is firmer after China rebutted yesterday’s Bloomberg story alleging that it was pondering a reduction on U.S. Treasury purchases. USD-JPY broke a run of three consecutive declines, which printed a seven-week low at 111.27 yesterday, in recouping to the upper 111.0s.
China’s State Administration of Foreign Exchange said that the Bloomberg report was based on “false” information. The remark saw the yield on the 10-year T-note tick lower while giving the dollar a lift.
The narrow trade-weighted USD index recovered to within a few pips of 92.47 after seeing a low of 91.92 yesterday. EUR-USD has ebbed back under 1.1950 after yesterday foraying above 1.2000 in the wake of the Bloomberg story. Market participants will now return focus on incoming fundamental leads while continuing to digest this week’s BoJ tapering of its QE program.
Main Macro 11 January Market Moving Fundamental Events
- BOE Credit Conditions Survey
- ECB Monetary Policy Meeting Accounts
- Canadian NHPI – November new home price index expected at 0.2%m/m from 0.1% m/m.
- US PPI & Unemployment claims – Headline PPI may dip 0.2% in December vs 0.4%, while core is expected at 0.2% vs 0.3%. Initial jobless claims are projected to drop 5k to 245k for the January 5 week.
Support and Resistance Levels
This article about 11 January Market Moving Fundamental Events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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