USD index rallies above 92.0 and global equities rebound

Thursday, January 08, 2015

Asian equity markets rebounded overnight, posting strong gains. The Nikkei index surged over 280 points (+1.67%) to finish the session at 17,167.10, while the Hang Seng index climbed 0.65% higher towards 23,850.   

The USD index continues its strong upside rally trading above 92.0 against a basket of currencies. The US Fed reported yesterday that a possible interest rate rise is not expected in the markets until April 2015, providing further support to the USD.

The USD index rallies above 92.0

DXY Curncy (DOLLAR INDEX SPOT)   2015-01-08 09-10-53

European equity markets opened this morning higher as the DAX and CAC indices gained over 1.3% in early trade, while the IBEX, London and Italian equity benchmarks also edged higher adding renewed gains. However, the euro remained under heavy pressure after falling for fifth consecutive session towards 1.18 against the US dollar. German factory orders retreated 2.4% in November against analysts’ estimates of a -0.8% decline.  

EUR- The euro plunges for fifth consecutive session towards 1.18

EUR Curncy (Euro Spot )  Daily 08 2015-01-08 09-14-06

Precious metals came under pressure this morning as gold slid slightly lower but held above the key are of $1,200 in early trade. Silver fell towards $16.40, while platinum and palladium remained in positive territory.

Crude oil prices were fairly mixed this morning following the large sell-off in the market. Brent front month futures extended losses below $51/barrel, while WTI futures held around $48.50 per barrel in early trade this morning. The bearish oil fundamentals and the recent US dollar strength weigh heavily on market sentiment, adding further pressure to the oil market.

 

Events for today:

 

0700

DE

Dec

Factory Orders

1000

EZ

Dec

Bus. Climate & Cons. Sentiment

1000

EZ

Nov

Retail Sales

1200

UK

Jan

BoE Rate

1230

US

Dec

Challenger Layoffs

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

2000

US

Nov

Consumer Credit

 

All times UK Local Time

 

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