Forex news from the European trading session - 2 January 2018
Economic data:
- UK Dec manufacturing PMI 56.3 vs 57.9 expected
- Eurozone Dec final manufacturing PMI 60.6 vs 60.6 prelim
- Germany Dec final manufacturing PMI 63.3 vs 63.3 prelim
- France Dec final manufacturing PMI 58.8 vs 59.3 prelim
- Italy Dec manufacturing PMI 57.4 vs 58.5 expected
- Spain Dec manufacturing PMI 55.8 vs 56.0 expected
- Australia Dec commodity prices (SDR terms) y/y -5.9% vs -3.3% prior
Central banks/Governments:
Others:
- FX option expiries for the 10am NY cut - 02 Jan 2018
- Global stocks added more than $9 trillion in value to equity markets in 2017
- Bitcoin losing its allure in the criminal underworld
- Moody's: Oil prices will remain at $40 - $60 per barrel in 2018
- Key dates to look out for in 2018 for the US
Markets:
- EUR leads the way, USD lags behind
- European stocks bathing in a sea of red as all major indices are down
- Gold is up by 0.71% to $1,311.78
- WTI crude is up by 0.07% to $60.46
- US 10-year yields is up by 2 bps to 2.43%
- Bitcoin is flat on the day, at $13,650
It's 2018, but markets still feel trapped by the final week of year-end trading. Dollar weakness has been the major theme in European trading today as markets kick-started the new year. In Asia, AUD and NZD were leading the way as Asian stocks were feeling buoyed.
But it has been quite the opposite in European trading, as the dollar slipped at first and commodity currencies rose to the top of the charts. AUD, NZD, and CAD led gains in early European trading before paring gains as we hit mid-day in Europe.
EUR/USD looks poised to test the 2017 high of 1.2092, as it hit a high of 1.2081 in trading so far today. Meanwhile, cable also took out November 2017 highs and is now trading at 1.3561 just shy of today's high of 1.3567. USD/JPY was a bit slow initially to pick up on things, but as European equities slumped the pair followed suit and is trading near lows at 112.16.
USD/CAD and NZD/USD pared gains in the last hour, but look like they are recovering back some of it as USD/CAD is now at 1.2532 after bouncing back to 1.2542; and NZD/USD is now at 0.7115 after hitting as low as 0.7103 earlier.
The slew of manufacturing PMI data today didn't have much of an impact in trading today - as I mentioned in the calendar previews that the major European ones were final readings so they shouldn't play too much of a factor unless they were well off prelim numbers (which they weren't).
In cryptocurrency land, Bitcoin is starting the year trading below $14,000 but slipped close to $13,000 at one point of trading today. Not a very unusual day in that respect.
Metals are mainly gaining ground, as well as oil, which helped to boost commodity currencies earlier in the session - but European equities turned sour and that put a dent on the positive tone in markets as we head into US trading.
