Afternoon Market Update – 01/02/2017 – by Jazz Singh
February 1, 2017The greenback has stabilized somewhat this session after a near 100 pip sell off in the dollar index since the start of the week. This risk off sentiment was translated into the equity space, which ended the month of January on the back foot across the board. This morning we’ve had UK manufacturing coming in line with expectations, at a near 3 year high. Off the back of this news the pound has extended its leg higher, with cable touching the $1.2650 level. Stocks have rebounded from yesterday’s lows as the DAX gapped higher at the European cash open. US equity futures are also pointing to gains at the cash open as companies such as Apple and Siemens release better than expected results. With news of output cuts from OPEC producers such as Iraq, WTI crude has gained over half a percent breaching the $53 handle. Gold is little changed, trading near the $1210.00 an ounce level following yesterday’s risk off sentiment which logged the haven asset’s best day in a month. We look to US Manufacturing PMI and Prices Paid data at 15:00 GMT this afternoon, preceding the Fed’s rate decision with accompanying monetary policy statement. The Fed seems to be a non-event today with rates expected to be unchanged as markets value further guidance from Trump above all.
