API data from late yesterday:
The four-week rise in US gasoline inventories is the largest since the start of the pandemic but the oil market doesn’t care. A report today from Energy Intel suggested that OPEC+ thinks the recent rise in crude is geopolitical and I have a hard time arguing against that.
The focus on the day will reside on the Fed, so it may be tough to see investors gather much conviction before we get to that.
As such, European trading today may be more of a quiet one featuring little significant market moves. There isn’t anything notable on the economic calendar to shake things up, so there isn’t much headlines to work with either.
For now, the risk mood is slightly calmer with US futures up a touch but that comes after the drop yesterday. Meanwhile, the dollar also saw gains trimmed in overnight trading and is keeping more mixed at the moment. That said, changes are light in FX and may likely keep that way until we get to the Fed.
0745 GMT – France January consumer confidence
0900 GMT – Switzerland January Credit Suisse investor sentiment
1200 GMT – US MBA mortgage applications w.e. 21 January
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
The ‘basket’ however, i.e. the CNY weighted against major trading partners, hit 103.5, which was its highest since August of 2015.
There has really be no let up in yuan appreciation despite official remarks about it stabilising. A stronger yuan will weigh on Chinese exports, but with the external sector is better shape than the domestic a higher currency gives the People’s Bank of
AFP had the small snippet:
It’d be great if this de-escalated tensions. We’ll see.
A snippet from Citi on the Federal Open Market Committee meeting:
The Summary is also an easy read, worth checking out (link below).
As always, there is nothing to trigger any change in BOJ policy indicated:
Link to the full text is here:
Summary of Opinions at the Monetary Policy Meeting1,2on January 17 and 18, 2022
