Afternoon Market Update – 05/01/2017 – by Jaz Singh
January 5, 2017The dollar has reversed some of its losses seen after the release of the FOMC’s minutes. This report echoed uncertainty over how Trump’s policies would impact the rate hiking path. The dollar index trades near the 102.50 level after breaking 102.00 to the downside in early trade. Strong labour market data and NFPs tomorrow could reinstate the strong dollar sentiment seen over the last 2 months. The yuan continues it gains from yesterday, adding 0.5 percent against the dollar while the yen has risen 0.8 percent versus the greenback. After stronger than expected inflation data hit the wires yesterday, the Euro has extended its uptick higher to the 1.0570 level before finding resistance. This morning we’ve had Services PMI data from the UK beating expectations. Cable gained some 30 to 40 pips off the back of this news after hefty declines from the 1.2360 region during early trade. European bourses remain range bound with the DAX unwilling to breach the 11530 handle to the downside while the psychological level of 11600 is showing some resistance. After rising over 1.5 percent on Wednesday, crude oil continues its push higher today; WTI currently trades near the $54.50 region. Looking ahead to the afternoon, we have US jobs and PMI data along with the weekly EIA natural gas and crude oil changes.
