| Daily Market Commentary Risk sentiment is on the rise, as the Chinese 'Coronavirus' spreads across Asia and death rates climb. This drove the US Dollar higher as a safety play, bond yields lower and Gold higher. The EUR fell back to 1.1025, while the GBP slipped back below 1.3100, despite the Brexit legislation passing through Parliament and being signed off by the Queen. EU PMI data was softer, while Consumer Confidence contracted by 8.1%, adding to market woes.
The rising reserve hit the AUD, which fell back to 0.6825, while the NZD bucked the trend. The NZD rose, despite the rising US Dollar due to strong inflation data. NZ CPI rose to 1.9%, above expectations, hinting at stronger economic growth. The headline data supported the stronger currency, but the real impact is felt on the ground, with cost-of living pressures skyrocketing. Low interest rates have allowed consumer debt levels to rise to record levels, which is fast becoming a global issue, forestalling the inevitable?
The week ahead is chock full of global economic data releases, headlined by the FOMC meeting and the ensuing press conference. US GDP growth data will also draw a lot of attention and the Bank of England Rate decision ahead of 'Brexit', on the 31st of January. The spread of the 'Coronavirus' has the potential to become a 'Black Swan' event. Daily Market Calendar 27/1 German IFO Business Climate, US New Home Sales, Dallas Fed Manufacturing Activity
28/1 Australia Business Climate, US Durable Goods Orders, S&P Case Shiller Home Price Index, US Consumer Confidence, Richmond Fed National Activity
29/1 Australia CPI, Japan Consumer Confidence, German Consumer Confidence, US Weekly Mortgage Applications
30/1 US Pending Home Sales, FOMC Meeting & Conference, NZ Trade Exports/Imports, German Employment, EU Employment, EU Consumer/Business Conference
31/1 NZ Consumer Confidence, Japan Employment, Japan CPI, Japan Industrial Production, German Consumer Confidence, China Manufacturing/Non-Manufacturing/Composite PMI, France GDP, German Retail Sales, Italy GDP, EU CPI, EU GDP, University of Michigan Sentiment
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