CentroFX | Daily Market News - 04.01.2017
PMI news - Europe
Wednesday sees a full day of data releases on both sides of the Atlantic, with the services PMI data the early focus, followed by the Euro area inflation data. The European calendar gets underway at 07:45 GMT, with the release of the French consumer sentiment data. The euro area December services PMI numbers are expected from 08:15 GMT, when the Spanish data is due. The Italian PMI will be released at 08:45 GMT, with French data at 08:50 GMT, German at 08:55 GMT and the combined euro are data at 09:00 GMT. There is plenty of UK data due at 09:30 GMT, including the Bank of England's M4 and consumer lending data, along with the December Market Construction PMI numbers. The headline release will likely be the euro area flash December inflation data, set for publication at 10:00 GMT.
Following stronger data in German, Spain and to a lesser degree France, the odds of an upside surprise to euro area inflation have risen. The US calendar gets underway at 12:00 GMT, with the release of the MBA weekly applications index, closely followed by the December domestic vehicle sales data. Domestic made vehicle sales are expected to slide modestly in December from the 13.8 million rate in the previous month. Seasonal adjustment factors will subtract significantly from unadjusted sales in December after adding in November, but an effort by consumers to beat higher interest rates may have led them to dealers. The current week Redbook Retail Sales Index is due at 13:55 GMT, with the ISM-NY Manufacturing Index expected at 14:45 GMT. At 19:00 GMT, the minutes of the Fed's December FOMC meeting will be published.
The ¥118.66 resistance confirmed significance Tuesday having so far capped the recovery from ¥116.05. Bears still need a close below ¥116.05 to confirm a break of the 21-DMA and hint at a correction initially targeting ¥114.63. Daily studies remain well placed for a fresh leg higher with bulls needing a close above ¥118.66 to target ¥121.69 2016 highs. Layers of support are following the pair higher with below ¥116.97 needed to ease bullish pressure.
WTI crude Oil futures for Feb '17 delivery last up $0.15 at $52.62 per barrel, after a $52.65 to $52.33 range in Asia today, with the market seeing bargain hunting after Tuesday's 2.6% fall and some 5% plunge from the highs. Tuesday saw Feb'17 WIT close down $1.39 at 52.33/bbl, after seeing solid gains earlier in Tuesdays session to post 18-month highs on news that Kuwait had complied with the recent OPEC cuts, leading the market to believe that other OPEC member will follow suit shortly. However, news Ford is set to scrap its $1.6 bln plant in Mexico after US President elect Trump tweeted that GM should build card domestically or face a stiff import tax, was seen by sources as the reason for the sharp reversal.