Dollar depreciation is yesterday’s big story as the market was initially caught in the whip saw after US CPI data fell within estimates. The yen was a major move, fueled by growing speculation that the Bank of Japan may or may consider adjusting its policy at next week’s meeting.
Stocks also closed higher, but US futures fell slightly today and bond yields rose slightly. The market mood is subdued and the dollar has also fallen slightly against the likes of the franc, Australia and the kiwi. Other major currencies are largely unchanged.
Looking ahead, trading sentiment will continue to revolve around risk moods, but note the dollar’s rough position, especially against the euro and yen. Britain’s monthly GDP will be on the European agenda set to reflect his 0.2% decline in activity. However, this data may not be very useful for Pound.
0700 GMT – UK monthly GDP for November
0745 GMT – French December final CPI figure
0800 GMT – Spanish December final CPI figure
1000 GMT – Eurozone trade balance data for November
1000 GMT – November Industrial Production in the Eurozone
That’s it for the session. I wish you the best days and good luck with your trading!