By the close of the Wall Street Session Tuesday, Lloyds Bank, considered one of the ‘Big Four’ clearing banks, released a report on the Swiss Franc. The report states that Inflation continues to be weak, though the SNB Governor, maintains that the currency remains overvalued. Given comparatively strong Economic Data which continues to be released fundamentally, and the expectation that Inflation will reach 2.1% by Q3 2020, Lloyds Bank while assuming a return to a stable risk environment, forecasts that Swiss Franc will likely appreciate against Euro; EURCHF to trade at 1.22 by year end 2018.
Euro gained higher against the Dollar following gains in global equity markets. Although many market players remain bullish on the Euro, the currency lacks clear catalysts for further gains due to election developments in Italy, and the coalition deal in Germany which has remained fragile, creating an uncertain political backdrop.
Sterling strengthened against the Dollar after UK Inflation Data came in unexpectedly strong. The Canadian Dollar weakened against the Dollar as Oil prices and the US Stock Index Futures fell. Japanese Yen rose to a five-month high against the Dollar following broad-based Dollar sell-off, and speculation evolving around BoJ’s Monetary Stimulus activities.
This morning, the Japanese Yen trades almost flat after the GDP Data release, slumping to 3 year lows. Elsewhere in Washington, the U.S. Commodity Futures Trading Commission’s (CFTC) Technology Advisory Committee (TAC) is going to hold a public meeting which will focus on financial technology (fintech) including blockchain and virtual currencies.
According to the meeting agenda as reported by people familiar with the matter, the meeting will feature panel discussions on topics including:
1. potential application of Distributed Ledger Technology (DLT) to the derivatives markets
2. market and regulatory developments with virtual currencies and related futures products
3. the future of machine learning, Artificial Intelligence (AI), and computing power, among others.
The meeting comes on the heels of the Senate Banking Committee hearing on virtual currencies. The chairs of the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)
Potential Catalysts Today High Impact
07:00 AM GMT German GDP (QoQ) (Q4)
01:30 PM GMT US Core CPI (MoM) (Jan.)
01:30 PM GMT US Core Retail Sales (MoM) (Jan.)
01:30 PM GMT US Retail Sales (MoM) (Jan.)
03:30 PM GMT US Crude Oil Inventories
12:30 AM GMT Australia Employment Change (Jan.)
10:00 AM GMT EuroZone GDP (YoY/ QoQ) (Q4)
03:00 PM GMT US Business Inventories (MoM) (Dec.)
12:30 AM GMT Australia Unemployment Rate (Jan.)