Daily Update – 2nd January 2020
EUR/USD has been having an active New Year's Eve – hitting a new cycle high at 1.1223, at the time of writing. It last traded at these levels in mid-August. The US dollar has been on the back foot in the last days of 2019, amid end-of-year flows. The greenback is also suffering a diminishing demand for safe-haven assets. Optimism about a US-Sino trade deal prevails with Chinese vice Premier Liu He is set to travel to Washington on Saturday Despite most markets being closed amid the New Year’s Eve holiday, major currencies are showing signs of life, with the greenback still being the weakest. The GBP/USD pair is a handful of pips below the 1.3200 threshold, trading at its highest in two weeks. The enthusiasm triggered by PM Johnson’s victory in the general election sent the pair up to 1.3513, from where it plunged to 1.2904 in a matter of days, on the back of Johnson’s decision to cap the negotiation period with the EU to December 2020 The Manufacturing Purchasing Managers Index (PMI) released by the Markit economics captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in Germany. The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market.Yesterday's Focus
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