Daily Market News - 10.01.2017 by CentroFX
Us Dollar sulmps in Asia
The data calendar slows somewhat Tuesday, with limited data expected in Europe and mainly second tier data set for publication in the US. The data calendar gets underway at 06:45 GMT, with the release of the Swiss November unemployment numbers. At 07:45 GMT, the French November industrial production data will be published. The US calendar gets underway at 11:00 GMT, with the release of the NFIB Small Business Optimism Index.
The Canadian November building permits data is set for publication at 13:30 GMT. The US Redbook Retail Sales Index for the latest week will be published at13:55 GMT, followed by the November wholesale trade numbers and the IBD/TIPP Optimism Index at 15:00 GMT. Also, due at 15:00 GMT is the latest JOLTS data. Late US data sees the current Treasury Allotments data released at 20:00 GMT.
The dollar was broadly lower against its peers as nervous Asian investors capitulate dollar longs ahead of President-elect Donald Trump's first official press conference tomorrow. Dollar-yen opened at Y116.03 and held a Y115.20 to Y116.21 range, last at Y115.35. Euro-dollar saw demand from both systematic and momentum accounts, which pushed the rate from $1.0574 to $1.0627 and was last at $1.0616. Aussie-dollar shrugged off weaker-than-expected Retail Sales, to rise from $0.7341 to $0.7385 and was last at $0.7375
Failure to retest the double daily top around ¥118.66 on the recovery from last week’s low risks putting in a lower shoulder that increases the risk of a correction lower. Bears continue to look for a close ¥114.63 to confirm a break of the 100-WMA and initially target ¥111.40-113.01 where the 55-DMA is located. Layers of resistance are accumulating with bulls now needing a close above ¥117.78 to shift focus back to the double daily top.
WTI crude Oil futures for Feb'17 delivery last up $0.27 at $52.05 per barrel, after a $52.12 to $51.79 range in Asia today, with the market recovering some of Monday's steep losses due to Chinese producer prices rising to 5yr highs, suggesting that spare capacity in the middle kingdom is falling. News that the US will sell some 8mln barrels of oil from the Strategic Petroleum Reserve (SPR) over the next few weeks saw WTI oil fall some 4% on Monday. Also weighing in on the market was comments from Kuwait's oil minister who suggested that the recently agreed to OPEC production cuts will be phased over a period of months rather than immediately, as did concerns over Iraqi compliance to adhere to the agreed production cuts. NYMEX February light sweet crude oil futures settled down $2.03 at $51.96 per barrel, after trading in a $51.77 (after hours) to $53.83 range. West Texas Intermediate peaked at $55.24 Jan. 3 which was the highest level since July 6, 2015, when crude peaked at $55.34.