Although conditions remain thin, the commodity currencies are very firm, underpinned on Wednesday by a surge in copper prices, which reached levels last seen in 2014 on news that China s is cutting production. The Aud$ is particularly strong but the Kiwi and Cad$ are not too far behind. Sterling also made some small gains in post-holiday trade on speculation of smoother Brexit negotiations in 2018. On the other hand, the Chf and Jpy are weak as traders are back in risk seeking mode ahead of the New Year. The US$ is also under pressure, which has assisted the metals to make some gains, further underpinning the commodity bloc currencies, while WTI, which soared to 60.00 on Tuesday due to production issues in the North Sea, eased back a little on Wednesday ahead of the weekly API Inventory figures. Stocks have traded sideways with little new news to drive direction over the holiday period.
Looking ahead, Thursday will be thin on data, but the focus will look to the Japanese Trade data for November ahead of the EU Economic Bulletin, while later in the day the US will interest will be on Goods Trade Balance (Nov), Jobless Claims, Wholesale Inventories and Chicago Purchasing Managers Index. Late in the day the EIA Crude Oil Stocks Weekly Change will also be released.
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