Forex - European Highlights - Thursday, 06 December 2018

 12:04 (GMT) 06 Dec

  [Forex Highlights]

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European Highlights

06 December 2018

European Highlights - Thursday, 06 December 2018 (0101-GRKY-C01)

Asia FX and News:

+ Huawei CFO Arrested in Canada as U.S. Seeks Her Extradition ~ BBG

+ China Complains to U.S., Canada, Asking to Free Huawei CFO ~ Chinese Embassy

+ Australia Oct. Retail Sales Rise 0.3% M/M; Est. 0.3% Gain, Oct. Trade Balance A$2.32b; Est. A$3b

+ Kuroda: BOJ Watching Impacts of Trade War, Brexit On Economy; Raising Rates Early Would Push Price Target Further Away

+ Risk sentiment worsens further with no clear trigger, the arrest of Huawei CFO in Canada might be one cause and the Chinese have been vocal for her release. JPY under bid mode while commodities currencies remains offered from NY. Dollar neutral in Asia. Fall in US indices futures and US yields weigh on USD/JPY, slicing through 113 with ease to test December lows. Crosses lower across the board. Risk-proxy AUD/JPY fell over 1%. AUD/USD extended losses below 50dma on poorer risk tone. USD/CAD stretched the highs just above 1.34 on trade uncertainty and lower oil prices. EUR/USD and Cable were left out of action, flat in Asia.

Nikkei and JGBs:

+ Nikkei -1.91%, JGB 10yr yield at 0.053%

European FX and news:

+ China Commerce ministry says confident of reaching an agreement with US on trade in 90-day period, but risk assets remain weighed down by Huawei concerns. Commodity currencies continue to bear the brunt of the sell off, with AUD and CAD hitting new lows in Europe, while GBP/USD and EUR/USD traded only very slightly lower. USD/JPY holding just above Asia lows

+ OPEC sources suggest that OPEC cuts might fall short of the expectations generated by the Saudi-Russia accord, helping to send oil prices lower and increasing the pressure on CAD

+ The EU Court said it would rule on Brexit reversibility by Dec 10. PM May continued to try to find support for her deal by making concessions to parliament, but she is still expected to lose the December 11 vote quite clearly. Nevertheless, GBP was little changed as markets still see a "no deal" scenario as unlikely.

Bonds and equities:

+ 10y UST yields declining by a further 2.5bp. 10y Bund yields are re-testing yesterday's new year lows at 0.24%. UK 10y Gilt yields also trade 2.5bp lower at 1.285%.


AU: Retail Trade (Oct) 0.3% m/m (Mkt: 0.3 Prev: 0.1R)

AU: Trade Balance (Oct) 2316 AUD mn (Mkt: 3000 Prev: 2940R)

05:30 GMT - NL: CPI (Nov) % m/m (Prev: 0.4)

05:30 GMT - NL: CPI (Nov) % y/y (Prev: 2.1)

05:30 GMT - NL: HICP (Nov) % m/m (Prev: 0.5)

05:30 GMT - NL: HICP (Nov) % y/y (Mkt: 1.7 Prev: 1.9)

07:00 GMT - DE: Factory orders (nsa) (Oct) % y/y (Mkt: -3.1 Prev: -2.2)

07:00 GMT - DE: Factory orders (sa) (Oct) 4cast: -0.5% m/m (Mkt: -0.4 Prev: 0.3)

08:30 GMT - SE: Average House Prices (Nov) mn (Prev: 2.79)

09:00 GMT - IS: Trade Balance (Nov P) ISK bn (Prev: -12.1)

10:00 GMT - GR: Unemployment (Sep) % (Prev: 18.9)

Still To Be Released:

13:15 GMT - US: ADP Employment Survey (Nov) 4cast: 175k (Mkt: 195 Prev: 227)

13:30 GMT - CA: Trade Balance (Nov) 4cast: -0.6USD bn (Mkt: -0.73 Prev: -0.42)

13:30 GMT - US: Initial Claims (43435) k (Mkt: 225 Prev: 234)

13:30 GMT - US: Non Farm Productivity (Q3 F) 4cast: % q/q ann (Mkt: 2.3 Prev: 2.2)

13:30 GMT - US: Trade Balance (Oct) 4cast: -55.1USD bn (Mkt: -55 Prev: -54)

13:30 GMT - US: Unit Labor Costs (Q3 F) % q/q (Mkt: 1 Prev: 1.2)

15:00 GMT - CA: Ivey PMI (Nov) (Prev: 61.8)

15:00 GMT - US: Factory Orders (Oct) % m/m (Mkt: -2 Prev: 0.7)

15:00 GMT - US: ISM Non-Manufacturing (Nov) 4cast: 58.5index (Mkt: 59 Prev: 60.3)

Events & Auctions:

22:15 GMT - US: Fed's Quarles Speaks in Stanford

ES: Expected: Tap of Bono 07/24 (EUR 1.5bn)

ES: Expected: Tap of Oblig. 07/28 (EUR 1.5bn)

ES: Expected: Tap of Oblig-ei 11/30 (EUR 1bn)

FI: Market Holiday - Independence Day

03:30 GMT - JP: 6mth Bills Auction

06:00 GMT - JP: Auction for Enhanced Liquidity

07:30 GMT - EU: ECB's Guindos Speaks in Frankfurt

07:30 GMT - EU: ECB's Guindos Speaks in Frankfurt

08:45 GMT - UK: BoE's Hauser Speaks in London

09:05 GMT - AU: RBA's Debelle Speaks in Sydney

09:50 GMT - FR: Expected: Tap of OAT 05/36 (EUR 1.5bn)

09:50 GMT - FR: Expected: Tap of OAT 05/48 (EUR 1.5bn)

09:50 GMT - FR: Expected: Tap of OAT 06/39(EUR 1.5bn)

09:50 GMT - FR: Expected: Tap of OAT 11/25 (EUR 1.5bn)

10:00 GMT - UK: BoE's Ramsden Speaks in London

13:00 GMT - CA: BoC's Poloz Gives Last Speech of the Year in Toronto

16:00 GMT - PT: EU's Moscovisi and Bank of Portugal's Costa Speak in London

16:30 GMT - US: 4wk Bills Auction (USD 40bn)

16:30 GMT - US: 8wk Bills Auction (USD 30bn)

17:15 GMT - US: Fed's Bostic Speaks in Atlanta

23:30 GMT - US: Fed's Williams Speaks in New York

23:45 GMT - US: Fed's Powell Gives Weclome Remarks at Housing Conference12:45 GMT - EU: ECB's Coeure Speaks in Frankfurt

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