Oil prices continued its crash, Gold continued to rally, while the USD remained mixed yesterday. As we resume an active economic calendar today, we expect volatility ahead for the sterling and USD as we look at the daily Forex news today.
11th January, AtoZForex – Today, crude oil will be up for further volatility, as we also have the oil inventories on the daily Forex news and events overview.
#1 The Euro will go extinct?
The Euro may be out of existence in ten years from now if both Germany and France do not rise up and bolster the single currency union. This is the opinion of French presidential candidate Emmanuel Macron, saying that “The truth is that we must collectively recognize that the euro is incomplete and cannot last without major reforms.”
#2 Mexico peso hits record low on Trump uncertainty, more weakening feared
The peso closed 2016 as the worst performing major currency, after losing 20% against the dollar, driven by fears of Trump uncertainty. DonaldTrump has clarified that he will withdraw from a joint trade deal with Mexico if he cannot renegotiate it in the United States’ favor, and he has threatened hefty tariffs on Mexican-made goods. Hence,]making further declines in the value of the currency inevitable.
Opportunity: Buy USDMXN on dips
#3 USD stable ahead Donald Trump first Conference Post Election
The USD headed down for the second consecutive day on Tuesday, with investors being cautious ahead of the first Donald Trump news conference after the victory. This is the first time the President-elect will hold the news conference since the 8th of November.
#4 UK Manufacturing Production m/m
Following a low report last month, which showed the change in the total inflation-adjusted value of output produced by manufacturers at -0.9%, the manufacturing production data is now forecast for a jump to 0.6%. This could be the next decider for the sterling as manufacturing makes up around 80% of total Industrial Production and tends to dominate the market impact. A disappointing number will lead to a further slump in the sterling.
Opportunity: Sell GBPUSD on disappointing data
#5 Crude oil inventories
On the one hand, OPEC members have actually shown commitment to the agreed oil output cut. However, on the other hand, a rapid rebound in U.S. shale production has had a higher effect on current oil prices as the commodity has been falling sharply in the past few days. The crude oil inventories is forecast to 0.9M rise in inventory by commercial firms during the past week. This could potentially push oil prices lower.
Opportunity: Sell oil on rising inventories.
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