Daily Forex Preview -22/12, Guest post by John Benjamen at Orbex
Guest post by John Benjamen at Orbex
The Bank of Japan left its monetary policy unchanged which saw the Yen marginally stronger against most of the peers with the exception of the Greenback. German PPI was modestly weaker on the monthly basis but was better than expected on the yearly basis, despite still contracting. The Euro continued to weaken against the US Dollar intraday and managed to close below the major support at 1.2271, making a low to 1.2219.
UK’s public borrowing came out modestly better than expected but the Cable was little changed by the numbers. Canada’s retail sales did not bring any surprises while CPI as expected was soft. The Canadian dollar weakened momentarily but managed to gain especially against a weaker Euro and the British Pound.
Today’s economic data is very light and in lieu of the holiday season, volumes are expected to slow down and the markets possibly trading rather slowly amidst lack of volumes and liquidity.
Fundamentals Recap – December 19, 2014
- BoJ monetary policy meeting unchanged
- German PPI m/m flat vs. -0.2%; PPI y/y -0.9% vs. -1.1%
- UK Public sector net borrowing 13.4bn vs. 14.8bn estimates
- Canada retail sales m/m flat vs. -0.3% estimates; core retail sales m/m 0.2% as expected
- Canada CPI m/m -0.2% vs. 0.1% estimates; Core CPI m/m -0.2% vs. 0.1%
Fundamentals – December 22, 2014
- BoJ monthly report
- Eurozone consumer confidence to be soft at -11
- US existing home sales to be soft at 5.21Mn; existing home sales m/m to decline -1.1%
- New Zealand trade balance to shrink to -550mn.