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USD weakness continued yesterday, consolidating only marginally overnight. EURUSD hit a high of 1.0615 yesterday afternoon (Bloomberg) and at the time of writing remains just shy of the 1.0600 level. GBP also saw a move higher vs. USD, helped by stronger UK data. GBPUSD broke through the 1.2400 handle before pulling back slightly overnight

  • In Asia, the big mover was USDCNH, which broke below 6.8000 yesterday, moving nearly 2.9% lower over 2 days

Yesterday, UK PMI data surprised positively with services PMI coming in at 56.2 (consensus: 54.7) and composite PMI coming in at 56.7 (consensus: 55.0)

  • However, focus remains on politics, capping potential GBP upside. Now that the new EU ambassador is in place, attention turns back to Article 50, with the media reporting that the speaker of the House of Lords has stated that peers will not stand in the way of the trigger (Telegraph)

Today markets will turn attention to the December US Non Farm Payrolls release at 13.30. Barclays Research expect a gain of 175k (Consensus: 175k)

  • We would expect a beat of consensus to be USD positive, however, our traders question the importance of the data at this time of the year and before Trump’s inauguration

 

What to Watch Today?

This morning we look to euro area final consumer confidence index at 10.00 (Consensus: -6.0 m/m) alongside euro area Retail sales (Consensus: -0.4% m/m). The key focus will be on the US employment report at 13.30, with particular attention on nonfarm payrolls figure (Barclays Research: 175k, Consensus: 175k)

 

via Barclays

 

Today’s currency rates

GBPUSD = 1.2385

 

GBPEUR = 1.1696

 

EURUSD = 1.0589

 

GBPAUD = 1.6892

 

EURGBP = 0.8550

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Matt Vann

Matt has been trading for over a decade, trading with various forms of Futures, Spread Betting and occassionally, CFDs. He'll trade limited markets including Indices, Currencies and selected Commodities such as Silver and Natural Gas.

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