Market News & Analysis
Market Brief: US Drops “Currency Manipulator” Tag from China, Bank Earnings on Tap
Matt Weller, CFA, CMT January 13, 2020 9:09 PM
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- Headlines about BOE member Vlieghe supporting an interest rate cut if economic data doesn’t improve weighed on the pound in an otherwise quiet, preparatory day ahead of what promises to be a busy trading week.
- News that the US is removing its “currency manipulator” tag on China boosted sentiment ahead of Wednesday’s expected signing of the two countries’ Phase One trade deal. USD/CNY fell below 6.90 today for the first time since August.
- FX: The British pound and Japanese yen were the weakest major currencies on the day, while the mainland European majors (euro and Swiss franc) were the strongest.
- Commodities: Oil shed nearly another 2% to trade at its lowest level in a month
- US indices closed higher on the day, led by the tech-heavy Nasdaq, ahead of a big week for earnings highlighted by the major US banks. European indices finished mixed on the day, with the FTSE 100 gaining ground on hopes of further BOE easing, while other major indices fell.
- Materials (XLB) and Technology (XLK) were the strongest major sectors today; health care (XLV) brought up the rear.
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