As activity on the economic calendar thins off so is volatility gradually fading in the currency markets. Today, we have the crude oil inventories report as the key economic data on the daily Forex news.
21th December, AtoZForex – We also have the New Zealand GDP due for release on the daily Forex news list.
#1 Monte dei Paschi rescue plan: Italy seeks €20 bln
Italy’s government has decided to seek the parliamentary confirmation that will permit it to lend20 billion euros to ensure the stability of the Italian banking sector. The governments will probably begin its aid from rescuing Monte dei Paschi di Siena, country’s third largest lender.
#2 Crude oil inventories
The last inventories report showed the actual figure surpassed forecasted decline of 1.4 million barrels. However, economists claim the reading has no bearing on the true state of the inventories since most declines were in PADD 5, predominated by the West Coast while Gulf Coast imports actually ticked higher. This week, the inventories report is forecast to show a 2.4M fall in the number of barrels of crude oil held in inventory by commercial firms during the past week.
Opportunity: Buy oil on dips
#3 End of gold rally? Janet Yellen confirms rate hike pace
Gold prices headed lower on Tuesday, after previously recovering for two consecutive sessions. Optimistic comments by Federal Reserve (Fed) Chairwoman Janet Yellen in relation to the US labor market have firmed the market view on the rate hike pace in 2017. Spot gold dropped 0.2 percent to $1,136 per ounce by 0100 GMT. The US gold futures fell to $1,139.10, down 0.3 percent. The Chair of Fed, Janet Yellen stated that the US job market has advanced to its strongest in almost a decade. She has highlighted that the wage growth is on the rise. Moreover, Janet Yellen stressed the expectations that the central bank will continue to raise interest rates in 2017.
#4 No more Swiss National Bank Currency Intervention in near-term?
The SNB’s quarterly monetary policy meeting concluded last week was a non-event. The central bank left the 3-month deposit rate at -0.75%. However, the language of the SNB was seen to have changed in describing its intention as far as currency intervention was concerned. The statement said that the SNB: “will remain active in the foreign exchange market as necessary while taking the overall currency situation into consideration.” The phrase “while taking the overall currency situation into consideration” missing from its September statement.
#5 IMF Chief Christine Lagarde guilty of negligence case
Head of the International Monetary Fund (IMF) Christine Lagarde faced trial in the end of July. As she was accused of negligence in misusing public funds. Following the court ruling, it was decided not to take enforcement actions against the IMF chief. However, Christine Lagarde was found guilty of criminal negligence for a repayment made to Bernard Tapie. This occurrence happened eight years ago, while she was France’s Finance minister. Despite being accused, she will remain in her position as the head of the IMF. On Monday, the French court announced that Christine Lagarde would not be sentenced to jail time nor charged a penalty. Yet, she was still accused of negligence.
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