Mixed FX flows as markets assess geopolitics
The U.S. Dollar is trading in mixed ranges this morning as the impact of the operation in Venezuela continues to unfold and the United States announces that it intends to negotiate a purchase of Greenland
Pulse
Mixed FX flows as markets assess geopolitics
Private employment numbers came in below expectations this morning, giving the first indication that the labor market is rebounding slightly slower than anticipated as Traders prepare for public sector data on Friday. Additional data, including ISM Services and Durable Goods, will be released at 10am Eastern.
Volatility in commodity prices continues this morning with oil prices declining following the news that Venezuela will transfer 30-50 million barrels of oil to the United States, valued at approx. USD 2.8 billion, and precious metals, namely gold and silver, snapping their winning streak.
What to Watch This Week…
- US Nonfarm Payrolls, Friday 8:30AM
- Monex USA Online is always open
The complete Economic Calendar can be found here.
AUD ⇓
The Australian Dollar is down against the Buck to start the day
following an overnight CPI release that printed in line with expectations. While this means that inflation is still above the Reserve Bank of Australia’s target range, it has reduced the likelihood of a February rate hike by approx. 6%. That being said, fourth-quarter CPI is due at the end of January, and if those numbers come in higher than expected, the RBA could be forced into a hike.
EUR ⇓
The Euro is down against the Buck to start the day
following a preliminary CPI release for December that came in slightly soft, but more or less at expectation. This gives some slight hope that the European Central Bank’s next interest rate move could be a cut, rather than a hike, staving off policy divergence from the Fed for a little while longer.