10 Jan: US$ lower, stocks up after dovish FOMC Minutes, Fed speakers. China CPI coming up.

By | January 10, 2019

The US$ headed lower on Thursday, after some dovish speeches from the Fed’s Bullard, Evans and Bostic preceded the equally dovish FOMC Minutes. Atlanta Fed President said that the hike in December most likely increases rates to neutral and the Fed needs to be patient and get better insight on economic risks. The Euro and the Chf led the way higher for the counterpart currencies, while elsewhere the dollar traded with a generally heavy tone.

Elsewhere, US stocks liked the fact that the rate cycle may be over and headed up by around 0.5%(DJI,S+P)/0.9%(NASDAQ), while the metals also headed higher, assisted by the softer dollar. The big mover was, once again, WTI which rose by 5% as Saudi Arabia vowed to stabilise the market, while traders also took hope from the positive soundbites coming from the US/China trade talks. Despite the dovish rate talk form the US, US yields headed higher, with the US10Y trading at 2.735%.

The main event today will be the China CPI/PPI (CPI, exp 0.3%mm, 2.1%yy; PPI, exp 1.6%yy). From the EU, we get the ECB Minutes, while the US will see a thin calendar but Fed speeches from Powell, Bullard, Evans and Clarida

Economic data highlights will include:                                                                                                                 

Thur: UK Like-for-Like Retail Sales, China CPI, PPI, New Loans, Japan Coincident Index, Leading Economic Index, ECB Minutes, Fed Speakers: Powell, Bullard, Evans, Clarida

CURRENCIES
EURUSD: 1.1545
Res  1.1560  1.1590  1.1620
Sup  1.1515  1.1485  1.1465
USDJPY: 108.10
Res  108.35  108.55  108.75
Sup  108.00  107.80  107.55
GBPUSD: 1.2790
Res  1.2815  1.2840  1.2865
Sup  1.2770  1.2745  1.2715
USDCHF: 0.9740
Res  0.9775  0.9800  0.9825
Sup  0.9730  0.9710  0.9685
AUDUSD: 0.7175
Res  0.7200  0.7215  0.7235
Sup  0.7160  0.7135  0.7115
NZDUSD: 0.6790
Res  0.6810  0.6830  0.6850
Sup  0.6780  0.6760  0.6740
INDICES / COMMODITIES
S&P.fs: 2586
Res  2595  2610  2630
Sup  2570  2555  2540
DJ30.fs: 23876
Res  23965  24080  24215
Sup  23735  23630  23530
SPI200.fs: 5736
Res  5745  5770  5795
Sup  5710  5685  5660
XAUUSD: 1292
Res  1295  1300  1305
Sup  1285  1280  1275
XAGUSD: 15.71
Res  15.80  15.90  16.00
Sup  15.60  15.50  15.35
WTI.fs: 52.16
Res  52.55  53.25  54.25
Sup  51.35  50.55  49.40