Terror attacks in Europe spark safe haven flows
- JPY - BOJ Press Conference
- NZD - GDT Price Index: -0.5%
- CAD - Wholesale Sales m/m: 1.1%
Thin liquidity and a light economic calendar is creating embellished market movements this week. Investors continue to flood the Dollar as terrorist attacks around the globe create an influx into safe haven currencies like the Greenback. German Chancellor Angela Merkel said yesterday morning that Germans would find the strength to live ‘free and open lives’ after a truck crash at a Berlin Christmas market killed 12 and injured 48 people. The shocking events were shortly after the assassination of Russia’s ambassador to Turkey in Ankara.
In other news, yesterday saw the last major central bank meeting of the year. The Bank of Japan held its benchmark rate on hold at -0.10% and upgraded their economic outlook for 2017 in the following press conference. It marked the first BoJ meeting since Donald Trump was elected President. Since the US election the Japanese Yen has weakened by more than 10% against the Dollar, yesterday’s relatively hawkish tone has helped to claw back some of those losses.
- USD - Crude Oil Inventories
- NZD - GDP q/q
- GBP - Public Sector Net Borrowing
- NZD - Current Account
- USD - Existing Home Sales
Crude Oil inventories in the States is the only piece of high tier data released today. This piece of data has come to the forefront lately after this month’s OPEC meeting where a deal was struck to freeze production at 32.5m barrels per day. Oil is currently trading above the key psychological level of £40.18 a barrel.
Have a good day.