Risk appetite remains on a precarious footing today, with Asian equity markets broadly lower; the Nikkei is down -0.8%, Hang Seng -0.4% and Shanghai Composite -0.2%.Yesterday’s highly anticipated ECB lending operation failed to install much long-lasting confidence in the European outlook; in spite of a much larger than expected uptake of almost EUR490bn, the euro sold off aggressively in the afternoon session, hitting lows of 1.3025.
Meanwhile the Bank of England released the minutes of its most recent monetary policy meeting, where interest rates were left at 0.50% and the asset purchase target was kept at GBP275bn. The minutes revealed that both decisions were made unanimously, and the MPC adjudged that the balance of risks to growth and inflation were broadly unchanged since the previous meeting. Nevertheless, with other global central banks including the RBA, ECB, Norges Bank and Riksbank all cutting rates in December, members of the committee re-affirmed their willingness to boost the economy further if circumstances warranted.
Overnight, New Zealand’s Q3 GDP figures were a mixed bag; the quarter on quarter reading beat expectations at 0.8% (compared to 0.6% expected, 0.1% prior), but the year on year reading slightly undershot expectations at 1.9% (2.2% expected), and last quarter’s estimate for year on year growth was revised down to 1.1% from 1.5%. NZDUSD has largely traded sideways in the aftermath of the release, predominantly occupying a range between 0.7665 and 0.7710.
Today’s data calendar will bring the release of third and final Q3 GDP estimates for the US and UK, along with the latest US jobless claims data, U. Michigan consumer confidence and leading indicators.
By
M.Zohaib Gadit
Forex Trading Consultant
Meanwhile the Bank of England released the minutes of its most recent monetary policy meeting, where interest rates were left at 0.50% and the asset purchase target was kept at GBP275bn. The minutes revealed that both decisions were made unanimously, and the MPC adjudged that the balance of risks to growth and inflation were broadly unchanged since the previous meeting. Nevertheless, with other global central banks including the RBA, ECB, Norges Bank and Riksbank all cutting rates in December, members of the committee re-affirmed their willingness to boost the economy further if circumstances warranted.
Overnight, New Zealand’s Q3 GDP figures were a mixed bag; the quarter on quarter reading beat expectations at 0.8% (compared to 0.6% expected, 0.1% prior), but the year on year reading slightly undershot expectations at 1.9% (2.2% expected), and last quarter’s estimate for year on year growth was revised down to 1.1% from 1.5%. NZDUSD has largely traded sideways in the aftermath of the release, predominantly occupying a range between 0.7665 and 0.7710.
Today’s data calendar will bring the release of third and final Q3 GDP estimates for the US and UK, along with the latest US jobless claims data, U. Michigan consumer confidence and leading indicators.
By
M.Zohaib Gadit
Forex Trading Consultant
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