The G-10 rundown
USD – most notable development here is that weak trade deal sentiment is not supporting the US dollar – and if data is weak through tomorrow we may have to add pressure from a more dovish Fed.
EUR – the EURUSD holding up well here after the recent rally of the key 1.1000 area, but needs more – especially a punch above 1.1180 to merit hopes that the long period of moribund action is ending.
JPY – the yen getting more traditional support here as safe haven bonds were bid yesterday on top of the weak risk sentiment, relieving some of the confusion from Monday’s session. JPY
GBP – sterling oddly aggressive this morning, given a clear tightening in the polls, but the weak USD and GBPUSD pulling above 1.3000 has likely inspired considerable order flows.
CHF – the franc doing its safe haven thing as EURCHF presses down into the lower half of the late range.
AUD – the Aussie is hanging in there rather well, given the news flow. The GDP print wasn’t weak enough to merit much comment – October Retail Sales up tonight.
CAD – the latest apparent decline in trade deal hopes and correction in oil prices could underline the Bank of Canada’s recent tilt back to a more cautious stance today. US data also important for CAD in the crosses. USDCAD poised near important 1.3300-50 pivot zone.
NZD – NZDUSD has broken free of the former range and what arguably looks like a head and shoulders formation, but now confronts and 200-day moving average below 0.6550. Tough to enthuse on the kiwi’s prospects in this environment but its resilience remarkable.
SEK – weak risk sentiment and now a weak November Services PMI (47.9) out of Sweden this morning to add to the terrible Manufacturing PMI from earlier this week and SEK is backpedaling further. Still, the SEK rally not showing signs of breaking unless EURSEK jolts back above perhaps 10.70.
NOK – EURNOK pulling to a new local high on a very hostile backdrop for NOK, including concerns for the global growth outlook on the latest US-China trade woes and seasonality. Last resistance is toward the 10.30 top
Today’s Economic Calendar Highlights (all times GMT)
- 0930 – UK Nov. Services PMI
- 1315 – US Nov. ADP Payrolls Change
- 1445 – US Nov. Final Markit Services PMI
- 1500 – Canada Bank of Canada Rate Decision
- 1500 – US Nov. ISM Non-manufacturing
- 1530 – US Weekly DoE Crude Oil / Product Inventories
- 0030 – Australia Oct. Retail Sales