Author: Rowan Murphy
The Aussie dollar opens flat today, having moved only within a 30 point range since trade opened on Monday. Markets seem to be more relaxed with a somewhat ‘easing’ of Middle East tensions and optimism over an expected U.S – China trade deal this week.
The Pound was weaker overnight as data showed Britain’s economy grew at its weakest annual pace in more than seven years, contracting by 0.3% in November. The lower than expected number has upped the likelihood that the Bank of England will cut interest rates later this month.
With a light economic calendar locally the focus will be on offshore news releases. Special attention will be paid to the US-China Phase 1 trade agreement which is expected to be released Wednesday. The details of the deal have been kept vague so far, so markets will be eager to get a better sense of what the deal really means in the long-run.
The focus points are going to be on how comprehensive the agreement is and the enforcement mechanisms for both sides. The Chinese Yuan continues to make ground ahead of the announcement reaching its highest level vs the USD since last August. Another point to note ahead of the deal is the US’s decision to remove from China the tag of “currency manipulator”, the markets are viewing this as an act of good will ahead of the signing.
US earnings season kicks off this week with some of the financial giants; Goldman Sachs, JP Morgan, and Citigroup topping the list. Forecasts are for another lacklustre earnings season but as always, when faced with expected below average actual figures, they’ll be looking for the ‘turning point’ story from the analysts. So expect traders to be talking about company forward guidance, rather than what is actually being printed.
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.
Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (Australia) Pty Ltd on 30 March 2020.
Rees Logan, Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (NZ) Limited on 30 March 2020.
Any queries regarding the Administrations should be directed to firstname.lastname@example.org.