Will the Dollar continue to strengthen after Friday’s bullish jobs data?

Yesterday’s markets

10th November 2015

  • Eurogroup Meetings
  • JPY Current Accounts: 0.78T
  • AUD NAB Business Confidence: 2
  • AUD Home Loans m/m: 2.0%
  • CNY CPI y/y: 1.3%
  • CNY PPI y/y: -5.9%

Markets continued to digest last Friday’s bullish non-farm figure as there were no major data releases yesterday. With the docket light, attention turned towards comments made from the scheduled Euro-group meeting where economists were hoping for an up-to-date guidance on monetary policies from the major Central Banks. Tomorrow, this will continue as we have day two of the ECOFIN meeting being held in Brussels.

In other news, Chinese bonds fell the most in two years, with yields on 10 year sovereign notes climbing from 11.5% to 3.25% . The two big moves were spurred on by a fourth consecutive fall in Chinese exports, indicating an ongoing slowdown in the world’s second largest economy. 

Today’s markets

9th November 2015

  • German Buba President Weidmann Speaks
  • EUR ECOFIN Meetings
  • US Import Prices m/m
  • UK MPC Member Cunliffe Speaks
  • US FOMC Member Evans Speaks
  • NZD RBNZ Financial Stability Report
  • NZD RBNZ Gov Wheeler Speaks

The day starts with another insight into China, as the release of their CPI yearly figure is posted in the early hours.  The gauge fell more than expected for October, it was forecasted for a drop to 1.5% but declined further and came out at 1.3%.  Falling from Septembers 1.6% reading it continues to show that the sharp drop seen in commodity prices in 2015 is now showing through with tepid consumer prices in China.  As concerns over global growth slowing with the world’s second largest economy deemed to be at the heart of this problem, this only emphasizes China’s demand for goods is slowing. From the US Fed member Charles Evans speaks at a university in Chicago, where markets will watch for any clues on the Feds intentions come December’s meeting.