{"id":12849,"date":"2015-02-04T05:40:52","date_gmt":"2015-02-04T05:40:52","guid":{"rendered":"http:\/\/www.icmarkets.com\/?p=11441"},"modified":"2015-03-19T04:32:52","modified_gmt":"2015-03-19T04:32:52","slug":"wednesday-4th-february-european-open-briefing","status":"publish","type":"post","link":"https:\/\/ic-cn-asia.com\/blog\/wednesday-4th-february-european-open-briefing\/","title":{"rendered":"Wednesday 4th February: European Open Briefing"},"content":{"rendered":"<p>\n\t<strong>Global Markets:<\/strong>\n<\/p>\n<ul>\n<li>\n\t\tAsian stock markets: Nikkei up 1.90 %, Shanghai Composite gained 0.25 %, Hang Seng rose 0.90 %, ASX rallied 1.20 %\n\t<\/li>\n<li>\n\t\tCommodities: Gold at $1264 (+0.35 %), Silver at $17.34 (+0.15 %), WTI Oil at $52.38 (-1.30 %), Brent Oil at $57.78 (+1.40 %)\n\t<\/li>\n<li>\n\t\tRates: US 10 year yield at 1.81, UK 10 year yield at 1.463, German 10 year yield at 0.351\n\t<\/li>\n<\/ul>\n<p>\n\t<strong>News &amp; Data:<\/strong>\n<\/p>\n<ul>\n<li>\n\t\tNew Zealand Employment Change 1.2 %, Expected: 0.8 %, Previous: 0.8 %\n\t<\/li>\n<li>\n\t\tNew Zealand Unemployment Rate 5.7 %, Expected: 5.3 %, Previous: 5.4 %\n\t<\/li>\n<li>\n\t\tAustralia AIG Services Index 49.9, Previous: 47.5\n\t<\/li>\n<li>\n\t\tChina HSBC Services PMI 51.8, Expected: 52.8, Previous: 53.4\n\t<\/li>\n<li>\n\t\tBOJ Deputy Governor Iwata says the pace of CPI to pick up\n\t<\/li>\n<li>\n\t\tBOJ Governor Kuroda says will adjust policy as needed to achieve stable 2% CPI\n\t<\/li>\n<li>\n\t\tBOJ Governor Kuroda says CPI likely to reach 2% around FY2015; to achieve price target at earliest time possible\n\t<\/li>\n<li>\n\t\tBOJ Governor Kuroda says central bank to continue easing until 2% inflation stable\n\t<\/li>\n<li>\n\t\tECB&rsquo;s Weidmann: Risks of government bond purchases outweigh benefits\n\t<\/li>\n<li>\n\t\tWeidmann: Deflationary spiral not very likely, sees inflation rates rising gradually in the medium term\n\t<\/li>\n<li>\n\t\tRBNZ Governor Wheeler: NZD still unjustifiably and unsustainably high, sees further drop despite recent fall\n\t<\/li>\n<li>\n\t\tWheeler: RBNZ expects to keep rates on hold for some time, says rate stability prudent in current situation\n\t<\/li>\n<li>\n\t\tChina Slows Down: Gauge of Services Industry Slips to Six-Month Low (BBG)\n\t<\/li>\n<li>\n\t\tAsian Stocks Rebound as Material, Energy Shares Lead Advance (BBG)\n\t<\/li>\n<li>\n\t\tPBOC Strengthens Yuan Fixing to a Level That Forced Appreciation (BBG)\n\t<\/li>\n<\/ul>\n<p>\n\t<strong>Markets Update:<\/strong>\n<\/p>\n<p>\n\tOil had a huge rally yesterday, gaining more than 9 % on the day, which then led to broad USD weakness in the FX market. WTI was trading at $44 on Friday and reached a high of $54 yesterday, a 20 % increase in just three days. The commodity currencies benefited from this, most notably the Canadian Dollar. USD\/CAD saw a 1000 pips rally in the past one month, so it was just a matter of time. Oil was the right catalyst and the pair fell to a low of 1.2350, down 300 pips from the Sunday opening level. Should the USD position covering continue, we could see further losses and eventually a test of the 1.21 level, where the pair was trading last on January 21<sup>st<\/sup>, before the Bank of Canada surprisingly cut interest rates by 25 bps.\n<\/p>\n<p>\n\tAUD\/USD recovered to the pre-RBA levels around 0.7825. The price action suggests the market was already positioned for a RBA rate cut, so it will more to drive the Aussie Dollar significantly lower &ndash; either renewed USD strength\/weak commodities or very weak econ data that would force the RBA to cut rates again in the coming months. Key resistance now seen in the 0.7850-60 area. If the pair breaks &amp; closes the day above it, we could see a further short squeeze up to 0.7950. Meanwhile, NZD\/USD benefited from better than expected employment change data. The pair rose to a high of 0.7447 overnight and might soon test the January 28<sup>th<\/sup> high at 0.7492. RBNZ Governor Wheeler spoke earlier and repeated that the NZD remains too strong, but also said that the RBNZ sees a period of stability in rates as likely.\n<\/p>\n<p>\n\t<strong>Upcoming Events:<\/strong>\n<\/p>\n<ul>\n<li>\n\t\t08:15 GMT &ndash; Spanish Services PMI (54.9)\n\t<\/li>\n<li>\n\t\t08:45 GMT &ndash; Italian Services PMI (50.0)\n\t<\/li>\n<li>\n\t\t08:50 GMT &ndash; French Services PMI (49.5)\n\t<\/li>\n<li>\n\t\t08:55 GMT &ndash; German Services PMI (52.7)\n\t<\/li>\n<li>\n\t\t09:00 GMT &ndash; Euro Zone Services PMI (52.3)\n\t<\/li>\n<li>\n\t\t09:30 GMT &ndash; UK Services PMI (56.3)\n\t<\/li>\n<li>\n\t\t10:00 GMT &ndash; Euro Zone Services PMI (56.3)\n\t<\/li>\n<li>\n\t\t13:15 GMT &ndash; US ADP Employment Change (225k)\n\t<\/li>\n<li>\n\t\t14:45 GMT &#8211;&nbsp; US Services PMI (54.3)\n\t<\/li>\n<li>\n\t\t15:00 GMT &ndash; US ISM Non-Manufacturing PMI (56.3)\n\t<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets: Asian stock markets: Nikkei up 1.90 %, Shanghai Composite gained 0.25 %, Hang Seng rose 0.90 %, ASX rallied 1.20 % Commodities: Gold at $1264 (+0.35 %), Silver at $17.34 (+0.15 %), WTI Oil at $52.38 (-1.30 %), Brent Oil at $57.78 (+1.40 %) Rates: US 10 year yield at 1.81, UK 10 &hellip; <a href=\"https:\/\/ic-cn-asia.com\/blog\/wednesday-4th-february-european-open-briefing\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Wednesday 4th February: European Open Briefing<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":12469,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/posts\/12849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/comments?post=12849"}],"version-history":[{"count":1,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/posts\/12849\/revisions"}],"predecessor-version":[{"id":12859,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/posts\/12849\/revisions\/12859"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/media\/12469"}],"wp:attachment":[{"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/media?parent=12849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/categories?post=12849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ic-cn-asia.com\/blog\/wp-json\/wp\/v2\/tags?post=12849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}