•  A fresh wave of a global risk-aversion trade underpins traditional safe-haven assets.   •  The prevalent USD selling bias provides an additional boost and remains supportive. Gold reversed an early dip to $1221 area and turned higher to hit near two-week tops during the early European session.  A combination of supporting forces helped the
According to analysts at ANZ, despite challenges, the New Zealand economy has shown considerable resilience. Key Quotes “The unemployment rate unexpectedly fell to 3.9% in the September quarter and resources in the economy are stretched.” “A number of factors are expected to continue to support growth, but headwinds remain and GDP is expected to grow
The pair resumes the upside and tests session peaks near 1.1460. The greenback remains depressed and sidelined in the 96.20 area. Brexit and Italy remain the main drivers of the pair near term. The upbeat tone around the European currency remains well and sound so far today and is now lifting EUR/USD to the area
In the US, the NAHB housing market index dropped to 60 in October from 68 in September, notes the research team at Danske Bank. Key Quotes “The level remains high but the trend is not good. Many housing indicators are turning around and while the interpretation is difficult given the extremely high volatility in most
In the UK, Brexit concerns remain front and centre, as we await word whether Tory rebels can muster the 48 letters necessary to trigger a leadership challenge, points out the research team at TD Securities. Key Quotes “Today’s Parliamentary testimony by several BoE officials – including Governor Carney – will be notable though cable remains
The last twenty-four hours saw US crude dip into the 55.00 critical level before immediately rebounding to familiar resistance levels near 57.00. WTI Chart, 5-Minute Despite some shocks to the downside, American crude barrels are holding steadily above the near-term bottom at 54.75 as energies traders recover from several months of headline-fueled shock selling. WTI
The Bloomberg US financial condition index shows significantly tighter conditions since the September FOMC, although only back to levels in April this year, points out Greg Gibbs, Analyst at Amplifying Global FX Capital. Key Quotes “Money-market spreads are narrower since earlier in the year, although they too have risen in recent months. This suggests that
Richard Franulovich, Head of FX Strategy at Westpac, notes that the National Association of Homebuilders (NAHB) sentiment index of US posted an eye-catching fall to 60 in November from 68, its lowest levels since mid-2016. Key Quotes “The US housing sector has been losing momentum for a few months in the wake of higher rates
The International Monetary Fund’s (IMF) Article IV mission warns that risks to Australia’s economy are skewed to the downside and so the Reserve Bank of Australia (RBA) should keep rates low.  Key points Economic expansion expected to continue Gradual upward pressure on wages and prices likely Notes and Welcomes slowing housing market Warns of risks
The People’s Bank of China’s Research Head Xu Zhong is on the wires now, via Reuters, expressing his thoughts on the bank and the economy. Key Comments: The previous policy change has weighed on China’s economy. Cannot mix up short-term macro policies with reform goals. Downward pressure on China’s economy has significantly increased. Downward pressure
Analysts at Commerzbank offer their view on the Euro in the coming months, in the wake of the Italian political risks. Key Quotes: “There is a lot to suggest that the EUR weakness is coming to an end unless Rome produces new disturbing signals. The bond market still sees an increased risk in the Italian