Markets slow down as the holiday spirit looms!
- Australia CB leading index m/m -0.10% vs. -0.10% previously
- BoJ releases monetary policy minutes
- UK BBA mortgage approvals 45.0k vs. 46.2k
- US weekly unemployment claims 267k vs. 270k
With the markets slowing down ahead of the holidays, the Bank of Japan’s meeting minutes were the main event from the Asian session. The BoJ minutes from the November 18th/19th policy meeting showed that the members were in agreement that the underlying trend in inflation was improving at a steady pace and that the BoJ should make policy adjustments without hesitation if the inflation trends changed. The BoJ was of the view that the improvement in the underlying inflation is expected to rub into the spring wage negotiations and that until wages increased, household spending could remain subdued. The Japanese Yen remains firm with USDJPY down -0.41% for the day after prices managed to break out from its sideways range earlier today.
The Australian dollar was on path to post a fifth day of consecutive gains with prices touching a 5-day high near 0.727 ahead of the US trading session. AUDUSD is up 0.43% for the day. The NZDUSD remains range bound; trading within yesterday’s high of 0.6826 and 0.6766.
The European session was quiet with Germany closed for holidays but the Euro was trading stronger in early trading. EURUSD posted an intraday high to 1.0962 in a steady intraday uptrend after prices managed to stabilize touching lows of 1.0871 in yesterday’s trading. With no major news releases on the store and with thin volumes in trading, EURUSD is likely to remain range bound into next week.
The UK BBA mortgage approvals data showed a modest pace of growth, rising 45k but missing estimates of 46.2k. The GBPUSD was trading stronger today, up 0.27% for the day as the Cable is set to post a second straight day of gains with prices trading near 1.49.
The US trading session saw the release of the weekly unemployment claims which came out 267k, below estimates of 270k. The US Dollar was seen strengthening on the news. USDCAD is up 0.12% after prices fell strongly in yesterday’s trading where the Canadian dollar was trading strong on higher Oil prices.
On the commodity front, WTI Crude Oil is trading choppy with prices down -0.37% for the day as prices posted a steady decline. Crude Oil prices gained strongly yesterday evening as the weekly US Crude Oil inventory report showed an unexpected decline in the weekly inventories report. Gold was trading higher, up 0.27% for the day with prices trading flat and within yesterday’s range which saw a low to $1068 being posted before prices managed to reverse higher.
There are no further news releases scheduled for the remainder of the evening and the US markets are set to close at 1PM Eastern Time on account of Christmas eve. All the major trading hubs will be closed tomorrow with only a few markets set to re-open on Monday, 26th.
