With not much out in the way of economic and corporate news, stock markets have been relatively quiet and trading action has been concentrated in currency markets. USD regained its footing following a correction and bounced back against most currencies with the exceptions of AUD which continues to advance, and ZAR which continued to climb on the back of a surprise SARB interest rate hike yesterday. The biggest action so far this morning has been a plunge in EUR which is down against USD, GBP, JPY, CAD. ECB President Draghi came out even more dovish indicating that he is willing to make more stimulus moves, that the central bank can’t be relaxed about low core inflation and deflation risk and that negative interest rates (possible signal here?) could help to support its QE program. Comments to the contrary from the Bundesbank’s Weidmann who sees the oil crash as stimulus and expects core inflation to pick up were widely ignored. Interestingly, other continental currencies like CHF, NOK and SEK have not followed EUR downward for a change. Moving into today’s North American trading, CAD could attract significant attention from traders with Canada retail sales and consumer prices due. These reports are among the last major data points before the next Bank of Canada interest rate decision on December 2nd, which comes after GDP but before the next employment report. Traders may look to these figures for signs of whether the Bank is under pressure to cut interest rates for a third time this year or if the rebalancing in Canada’s economy is far enough along for them to stay on hold. Corporate News There have been no major announcements in North America this morning. Economic News Significant announcements released overnight include: Germany producer prices (2.3%) vs street (2.0%) Upcoming significant announcements include: 8:30 am EST Canada retail sales street 0.1% 8:30 am EST Canada retail ex auto street (0.4%) 8:30 am EST Canada consumer prices street 1.0% 8:30 am EST Canada core CPI street 2.0% 9:00 am EST FOMC Bullard speaking 11:15 am EST FOMC Dudley speaking 12:00 pm EST Sat FOMC Williams speaking CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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