Euro starts new year at new low

Friday, January 02, 2015

The euro plunged against the US dollar today, heading towards the key support level of 1.20 amid ongoing concerns regarding Eurozone’s prospects in 2015. Lithuania joined Eurozone on New Year’s Day despite 40% of the country’s population being opposed the move. The exchange rate is now set at 1 euro for 3.45 litas, while both euros and litas will circulate in the country until June 2015. On the other side, the political uncertainty in Greece (upcoming elections on 25th January 2015) continues to dominate the European equity markets, weighing in market sentiment.

EURUSD

EURUSD Curncy (EUR-USD X-RATE)   2015-01-02 08-21-15

China’s manufacturing PMI declined to 50.1 in December compared to 50.3 in November, beating analysts’ expectation. Furthermore, China’s non-manufacturing PMI increased to 54.1 in December from 53.9 in November. The Hang Seng index rallied over 250 points (+1.07%) to end the first trading session of 2015 at 23,857.82.

Hang Seng index

HSI Index (Hong Kong Hang Seng I 2015-01-02 09-00-23

The European equity markets opened fairly mixed at the first trading session of the year. The CAC, DAX, IBEX and the London equity benchmark index reversed earlier gains ans slid lower this morning. The main focus will turn to the release of the Markit Manufacturing PMI data from the US, UK, Eurozone and Germany, which could provide further signs regarding the manufacturing activity in the US and Europe. In addition, investors will be keeping an eye on the ISM manufacturing index for December as well as construction spending for November.

Precious metals edged higher in early trade this morning, as gold climbed higher 0.4% towards $1,190/ounce and silver rose over 1.2%, eyeing the $16 area. Crude oil prices rebounded from heavy losses during the last trading sessions of 2014, climbing higher this morning. Brent front month futures rose towards $57.50 and the WTI climbed above $53.50 per barrel.

XAU- Gold spot

XAU Curncy (Gold Spot   $_Oz )  D 2015-01-02 09-02-26

Happy New Year!!!

 

Events for today:

 

0145

CN

Dec

Manufacturing PMI

0855

DE

Dec

Markit Manufacturing PMI

0900

EZ

Dec

Markit Manufacturing PMI

0930

UK

Dec

Markit Manufacturing PMI

1445

US

Dec

Markit Manufacturing PMI

1500

US

Dec

ISM Manufacturing

1500

US

Nov

Construction Spending

1500

US

Dec

ISM Prices Paid

 

All times UK Local Time

 

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