FX Headlines: Markets to Face a Quiet North American Session Amid Light Economic Docket
• China Raises Interest Rates – Wall Street Journal
•Cash Buyers Lift Housing Market – Wall Street Journal
• Stocks Shrug Off China Interest Rate Hike – Financial Times
•China Raises Key Interest Rate to Counter Inflation – Bloomberg
•Goldman Sachs Turns Bullish on European Banks Bond Market Shuns – Bloomberg
EURUSD: German industrial production in December fell 1.5 percent after declining 0.6 percent the month prior amid economists’ expectations of a 0.2 percent rise. At the same time, the annualized rate pushed 10.0 percent higher during the same month. Taking a look at the breakdown of the report, manufacturing and mining slid 0.1 percent in December, while production of consumer goods erased 1.3 percent. Indeed, many economists and strategists attributed the decline to extreme weather conditions; however, as tough austerity measures weigh on growth, market participants should not rule out fiscal consolidation weighing on demand.
During the overnight trade, China raised their key overnight lending rate twenty five basis points for the second time in just over a month as the region fights its boiling consumer prices. Due to the light economic docket during the North American trade, currency traders should not rule out additional pressure on the high yielding currencies as risk aversion regains its footing.
Written by Michael Wright, Currency Analyst
To Receive Future Articles by Email, please contact me at firstname.lastname@example.org
Michael Wright is the author of FX Headlines, Fundamentals vs. Technical’s, Weekly Spotlight, and Forex Trading Weekly Forecast
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.