Stocks are groping around in red worldwide as markets have been cautious since the beginning of the year, and as they weigh the impact of rising Bond Yields. Analysts and Market Watchers are debating whether this represents a minor blip in a bull market that has grown used to endless records or a more fundamental shift. The eurozone grew faster than the US for the second straight year last year. It’s the latest sign that the bloc has moved from recovery to expansion.
Japanese Government Bonds gained this morning, even as the country’s Industrial Output grew in December at the fastest pace in 8 months. By the close of the Wall Street Session yesterday, Euro edged higher against the Dollar as traders awaited Trump’s annual State of the Union address and the Federal Reserve meeting announcement today.
Sterling rose against the Dollar yesterday after Bank of England Governor Mark Carney said the Central Bank was turning its focus back to bringing down Inflation, supporting Investors betting that the Central Bank would rein in Monetary Policy faster than expected. The Australian Dollar held steady as upbeat news helped offset a widening yield advantage for their counterpart, the US Dollar. Trump’s soothing comments on NAFTA may likely cause price action for the USDCAD similar to last week’s where upbeat remarks provided the pair some support. Price review for the Canadian Dollar is shown in chart below.
Gold slipped to a one-week low on Tuesday as Markets anticipated Trumps’ address. Oil prices also slid for a second day.
Potential Catalysts United States
01:15PM GMT ADP Nonfarm Nonfarm Employment Change (Jan)
03:00PM GMT US Pending Home Sales (MoM)(Dec)
03:30PM GMT Crude Oil Inventories 07:00PM GMT FOMC Statement 07:00PM GMT Fed Interest Rate Decision
08:55AM GMT German Unemployment Change (Jan)
10:00AM GMT EuroZone CPI (YoY) (Jan) 01:30PM GMT Canada GDP (MoM) (Nov)
01:45AM GMT China Caixin Manufacturing PMI (Jan)