Daily Update – 8th January 2020
EUR Consumer Price Index USD ISM Non-Manufacturing PMI The euro declined against the U.S. dollar on Tuesday, as investors cautiously warmed to riskier assets with few signs of a further immediate escalation in tensions between the United States and Iran. Investors are now looking forward to the signing of a Phase 1 trade deal between the United States and China on January 15, after the cooling of trade tensions between both sides earlier last month helped boost demand for riskier emerging market assets. The British slipped lower against dollar on Tuesday, as the dollar rose, with investors watching British lawmakers’ return to parliament after the Christmas recess in preparation to vote on Prime Minister Boris Johnson’s European Union (EU) withdrawal deal. The U.S. dollar has recovered some ground amid market relief that the situation in the Middle East has not deteriorated further. Participants were closely watching for signs of Iranian retaliation Meanwhile, the US and Iran continued to exchange menaces, although the market seems to have paid no new attention to those. This Wednesday, Germany will release November Factory Orders, while the EU will publish its December Economic Sentiment Index. In the US, the only relevant figure will be the ADP survey on private jobs’ creation ahead of the Nonfarm Payroll report on Friday. The UK calendar will remain scarce this Wednesday, as the kingdom will only release the Halifax House Prices report.Yesterday Explained
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