Everyone sat waiting for the inevitable, Bearded Ben.
The market is sat on tenterhooks waiting to see whether the English can salvage victory from the jaws of defeat and live to fight another day in the Ashes series currently underway in Australia. Seriously, everyone is waiting with baited breath! Alright well maybe not entirely but in the absence of anything truly market moving we sit at levels seen pretty much at the close on Friday of last week. Chinese data came in on the softer side and the market has been warned that GDP growth should be projected at the 7.5% mark for next year rather than the widely held belief of 8% as being the flat line number. Not a massive reaction in the market save for a small slide lower in the AUDUSD as a result.
Conversely the Japanese Tankan report came out and showed remarkable improvement in sentiment amongst both the manufacturing and services sectors. The latter printing it’s best result in over 7 years. This too was enough to give the JPY a boost and saw the USDJPY come ever so softly lower.
On the day we’ve have French and German PMI prints, with the former confirming the very very poor state of affairs in France, while the latter has simply once again shown Germany’s manufacturing led growth. This afternoon we await a speech from Mario Draghi although I wouldn’t expect anything too market moving here and further out from the US we’ve got Empire Manufacturing and flash PMI prints. A skew to the upside will put more fervent excitement in the Dectaper camp, but to be honest, with conditions so thin and everyone so firmly waiting for the FOMC on Wednesday night I once again wouldn’t expect fireworks.
The EURUSD is likely to hold ground on the day between 1.3730 and 1.3800/10 (the topside being a stretch). While the Cable should revert (slowly) back below 1.6300 with such moves seen as good buying opportunities, but only if one is mindful of what EURGBP is actually doing (which is decisively heading north!). I don’t have a great deal else to add today folks as along with the rest of the market, I too am slowly but surely winding down for the year.
Helmets on and good luck out there today.