View our guide on how to interpret the FX Dashboard.
- Economic Adviser Kudlow reported that the “Phase One” trade deal between the US and China will be signed in Washington in early January. While the agreement still hasn’t been formalized, the reduction in tariffs was enough to support risk assets again today.
- US data: The Markit PMI surveys came in around 52, roughly in-line with expectations and consistent with 1.5% GDP growth. The NAHB Housing Market Index surged to a 20-year high of 76, painting a bullish picture for the housing market heading into 2020.
- FX: The euro was the strongest major currency, with the safe haven Japanese yen seeing the worst performance on the day. We’re also keeping a close eye on USD/SEK after last week’s Riksbank meeting.
- Commodities: Oil ticked higher in quiet trade (see some longer-term factors that could drive crude’s price) while oil was essentially flat. Bitcoin slipped below the $7k level for the first time this month.
- US indices closed between 0.5% and 1.0% higher across the board on lingering good vibes from last week’s Phase One trade deal.
- Energy (XLE) was the strongest sector on the day, while Industrials (XLI) were the weakest. All eleven major sectors gained ground today.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.