Forex - GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)...


 11:46 (GMT) 09 Jan

  [Forex Highlights]

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GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0101-QFLJ-C01)

RECAP CURRENCIES, DATA AND EVENTS

Regional Backdrop:

Risk-on sentiment returned to the Asian markets on Thursday with de-escalation of U.S./Iran tensions as President Trump stayed away from retaliating. Oil prices slid back lower and trade sentiment also remained positive with China confirming Vice Premier Liu He's visit to Washington next week to sign the phase 1 trade deal. KRW (+0.99%) was the leader on EMFX board by a wide margin, and MYR (+0.37%), INR (+0.36%), IDR (+0.36%), CNY (+0.26%), TWD (+0.23%), CNH (+0.17%) and PHP (+0.17%) also recorded gains.

Asia News and FX:

+ China: China says Liu He to travel to U.S. for trade deal signing - BBG

+ China: China Dec. Consumer Prices Rise 4.5% y/y; Est. 4.7% - BBG

+ India: India's central bank has told the govt that a slippage of 50 basis points on the country's fiscal deficit target of 3.3% for fiscal year ending March 2020 is not a concern. - BBG

+ USD/CNH: Both offshore and onshore yuan strengthened to their five-month lows against the dollar on Thursday amid risk-on sentiment after the easing of US-Iran tensions and better-than-expected December headline inflation. USD/CNH dropped to 6.9173 on Thursday from a high of 6.9697 a day earlier, before last seen trading at 6.9327 in the European hours. Downside bias remains, with China just announced that Vice Premier Liu He will travel to Washington to sign the phase-one trade deal with the U.S. next week. Support seen at 6.9211 with potential to move further south to 6.9000 big figure.

Europe FX and News

GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0101-QFLJ-C01)

+ The USD continued to make gains through the European morning, primarily against the lower yielders, as risk appetite continued to recover.

+ The EUR found some initial support from the better than expected German industrial production data, which showed a 1% m/m rise in November and an upward revision to October. Although the trend remains negative, it is less weak than it was. However, positive sentiment based on the production data was offset by the decline in German exports reported in November, leading to a smaller than expected trade surplus of EUR18.3bn. EUR/USD fell back later in the session helped by weakness in GBP/USD

+ GBP was the weakest currency through the morning, suffering from Carney's comments suggesting the possibility of an early Bank of England rate cut if the data continued to underwhelm. Comments from EU negotiator Michel Barnier suggesting a difficult Brexit negotiation also helped out the pound on the back foot.

U.S. Data

Only Initial Claims being published today.


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