Afternoon Market Update – 13/01/2017 – by Jaz Singh
January 13, 2017The greenback is again in negative territory for the session as market participants dampen their belief in the Trump trade. Against its major counterparts the dollar has dropped some 0.3 percent this morning as we anticipate the important Retail Sales data this afternoon. A strong number should reestablish the bullish dollar sentiment we saw in the lead up to the President elect’s press conference earlier this week. The pound is also on the slide as banks seem to have lost hope of being able to keep passporting rights post-Brexit. Equities are on the rise as pharma and auto stocks bounce strongly from strong sell off seen in the previous session. The Stoxx Europe 600 is up 0.6 percent while the DAX has gained over 100 pips from its lows yesterday. As the dollar continues its slide we see gold adding 0.2 percent to just below the $1200 handle. Following strong gains over the past 2 days crude oil has declined towards the $53 level in a corrective move. It will be a busy afternoon on the US calendar; along with the aforementioned sales data we’ll also see PPI figures and a speech from the FOMC’s Harker to lead us into the weekend.
