A steady stream of economic data will flow through the financial markets on Thursday. German IFO expectations, according to the 25 January Market Moving Fundamental Events are being released today and will be a key economic release for today’s session.
25 January, HotForex –Asian stock markets headed south, led by Japan with the Nikkei losing -1.13%, as the dollar was further pressured by U.S. rhetoric on USD and trade. U.S. stock futures are down in tandem with FTSE 100 futures as the focus turns to the ECB meeting today as a strong data round so far this week has rekindled concerns of a major shift in guidance.
European Market Outlook
The strong PMI readings out of the Eurozone and the rise in U.K. employment numbers coupled with a stronger pound saw U.K. bond markets underperforming yesterday and yields surging higher led by Gilts, while the FTSE 100 underperformed amid a wider dip in equities.
With the pound remaining strong and the ECB meeting hanging over markets we are unlikely to see a major correction during the AM session and ahead of key surveys in the form of the German Ifo and the U.K. Distributive trade survey. Meanwhile, we expect Draghi to continue to move cautiously, although that the ECB is heading for an exit from QE this year is pretty clear.
USDJPY is down for a third straight day, this time logging a four-month low of 108.73. Broader dollar declines has once again been driving, with the buck making fresh lows versus a range of other currencies. EURJPY and other yen crosses have been trading comparatively steadily.
Stock markets in Asia have come off the boil amid concerns about Trump’s protectionist bent, and after his Treasury Secretary’s verbal embracement, yesterday, of the weakening dollar trend, which many are calling the “Mnuchin Moment”. The dollar, which is down for a fifth consecutive quarter, which is the most protracted decline since 2007-8, is posting its biggest monthly loss in over two years.
There at signs that this is causing some consternation in Asia, with a Bloomberg report today citing South Korean policymaker has affirmed that “excessive” movements in USD-KRW are being “monitored.”
Main Macro 25 January Market Moving Fundamental Events
- ECB Rate Decision & Statement & Press Conference – 12:45 and 13:30 GMT – Asset purchasing is ending – but when and how is the Hawk/Dove Debate – how will Draghi play this with and appreciating EUR?
- German Ifo – Expectations – a slight dip in the reading to 117.0 from 117.2
- Canadian Retails Sales – Expectations – Decrease to 0.7% from 1.5% last time
Support and Resistance Levels
This article about 25 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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