Investing.com UK - Financial Markets Worldwide
⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Market Brief: Volatility Recedes Ahead Of PMI Data

ByCity Index
AuthorMatt Simpson
Published 22/11/2019, 05:24
EUR/USD
-
USD/JPY
-
USD/CAD
-
DE40
-
Daily % Candles

Forex Brief:

  • Australia’s manufacturing PMI contracted slightly at 49.4 (50.1) prior, making it the 2nd dip into negative territory over the past 3 months. Service PMI however expanded slightly at 50.1, up from 49.9 prior. J

  • CPI in Japan rose to 0.4% YoY as expected, yet with it remaining so far from their 2% target after all these years, BOJ could still act at any of the coming meetings. They have been more vocal about forward guidance and are essentially deciding policy on a per-meeting basis. Their next meeting is on the 20th January.

  • Reports are circulating that MAS (Monetary Authority of Singapore) are considering allowing crypto derivates on their exchanges.

  • A quiet end to the week for volatility so far. Overall, daily ranges are just 30% of their ATR – but hopefully this will pick up with PMI’s from Europe, US and Canadian retail sales.

    • Price Action:

  • DXY: On track for a small, bullish pinbar week with a potential swing low at 97.68.

  • EUR/USD: Bearish outside day suggests a swing high could be in place at 1.1097

  • USD/JPY: Consolidating above 108.23 support, I’m not convinced we have the data to see a breakout of the 108.23 – 109.07 range today.

  • USD/CAD:1.3200 could prove to be a pivotal level on USD/CAD around US PMI and CA retail sales.
    • Asian Cash Indices % Change

    Equity Brief:

  • Most key Asian stock markets have recorded modest gains between 0.20% to 0.50% but with muted volumes as U.S-China trade deal fatigue hit the nerves of market participants.

  • In yesterday’s late European session, media has reported that China top trade official, Vice Premier Liu He has invited U.S. officials for another round of trade talk in Beijing to be taken place before Nov 28, U.S. Thanksgiving holiday. So far, the U.S. Trade Representative Office has not confirmed or commented on China’s invitation.

  • U.S. President Trump is now expected to sign the Hong Kong Democracy Bill into legislation soon. Global Times, a pro- Beijing media has published an article that China can possibly retaliate by placing sanctions on U.S. lawmakers who interfere in China’s internal affairs and even blacklist “relevant U.S. firms” and hold back cooperation with U.S. on some global issues that will complicate the U.S-China Phase One trade deal.

  • Meanwhile, Hong Kong has seen a relatively calm state in the past two days ahead of local council elections to be held this Sunday versus intense confrontations between anti-government protestors and the police at the start of this week. Protestors that are still being held out at Hong Kong Polytechnic University have dwindled significantly to below 100.

  • Alibaba’s secondary listing in Hong Kong has started to see decent bids in the “gray market” before its official start of trading on 26 Nov. According to media report, some institutional investors saw bids as high as HK$182 in gray-market trading today, a 3.4% premium above the issue price of HK$176.

    • Up Next:

  • PMI data from Europe and US are the calendar highlights to see the week.

  • France kicks off at 08:15 GMT and expected to see their expansive PMI’s increase, whilst German PMI’s at 08:30 GMT are expected to see their rates of contraction soften. And, with the broader European reads released at 09:00 GMT, it makes a decent case to monitor Euro pairs and DAX. Ultimately, the stronger the data the more bullish it could be for Euro, and conversely weaker prints (particularly if negative and contracting faster) brings forward expectations for ECB to ease and weigh on the currency.
    • Economic Calendar

    Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.

    Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

    Original Post

    Latest comments

    Loading next article…
    Install Our App
    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.