The USD hedges higher, equity markets are mixed, oil and US yields move lower. If re-elected, Trump said he would slap a tariff of at least 60% on Chinese imported goods. Senate Republicans cast serious doubt on fate of bipartsian immigration deal.
Inother news. Yemen's Iran-aligned Houthis fired missiles at two vessel sin the Red Sea in what they describe as an act of solidarity with Palestinians. Blinken is meeting with Egyptian leaders as part of an effort to secure a cease-firefor hostages.
Incurrency news. Battered Chinese stocks leapt 3.2%, their largest one-day gain in two years. New short selling restrictions and talk of authorities strengthening its resolved were the cause of the move higher. Australia's RBA holds rates as inflation cools, warns hike still an option.The BOJ is laying the groundwork to end negative interest rates by April. The CNY is up 0.15%, JPY down 0.05%, MR down 0.32%, TWD is down 0.15%, AUD is up 0.15% while the NZD is off 0.1%, The trading currencies the MXN and the ZAR hedging higher 0.08% and 0.38% respectively.
Incommodity markets. China starts new year with robust imports of crude, LNG, coal, and iron ore. Oil steadies after gains, Gaza ceasefire talks in focus, Oil is presently trading up 0.71%, Nat Gas is flat, Both Gold and silver are trading higher 0.08% and 0.11% respectively while copper is down 0.51%. Agricultural commodities moving higher with Wheat trading 0.38% while soybean 0.27%.
CADThe USD/CAD gave up part of the last 2 days gain as lower US Treasury yield have but put some pressure on the Greenback. Ivey Purchasing Managers Index to be released this morning and BoC’s Macklem will speak in Montreal.
EUR/CAD remains in a tight range trading at mid-October levels.
EUR German industrial orders unexpectedly jumped in December, posting their highest month-on-month increase in more than three years. Despite the strong data, the EUR remains under pressure as the market expect the ECB to cut rates in April asinflation recedes.
GBP/EUR moved a little higher as BoE economist called the expectation of interest cut are premature. Traders are now focusing on the retail sales report from both economies.
GBP/USD remains under pressure. The risk of recession fading in the US is allowing the FED some time to decide on rate cuts. However, the BoE may not have this luxury as the UK economy is on the brink of a technical recession.
For clients based in the European Economic Area, payment services for Payments International Inc. are provided by CurrencyCloud B.V..Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam.CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (RelationNumber: R142701).
Payment services in the United States are provided by Visa Global Services Inc. (VGSI), a licensed money transmitter (NMLS ID 181032) in the states listed here. VGSI is licensed as a money transmitter by the New York Department of Financial Services. Mailing address: 900 Metro Center Blvd, Mailstop 1Z, Foster City, CA 94404. VGSI is also a registered Money Services Business (“MSB”) with FinCEN and a registered Foreign MSB with FINTRAC. For live customer support contact VGSI at (888) 733-0041.
For clients based in the United Kingdom and rest of the world, payment services for Payments International Inc. are provided by The Currency Cloud Limited. .Registered in England and Wales No. 06323311. Registered Office: StewardshipBuilding 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic MoneyRegulations 2011 for the issuing of electronic money (FRN: 900199)
