Dec. 16: MARKET OVERVIEW
USD/JPY: edged down to 117.12. Yen strengthened as demand for it as a safe haven rose after crude oil slumped by 4.8% to $55.02 a barrel on Monday and Russia raised interest rates from 10.5 to 17% on Tuesday.
China’s HSBC Flash Manufacturing PMI fell below the crucial 50 mark for the first time in 7 months, coming below the forecast at 49.5. RBA monetary policy minutes show a cheaper currency is needed to support the economy. AUD/USD tested the 0.8200 mark to the downside, but found some support here.
Markets await flash manufacturing and services PMI's and ZEW economic sentiment readings for Germany and the region. First figures will be released at 8:30 GMT. EUR/USD hovers around 1.2440.
GBP/USD: rose a bit to 1.5665. The UK will release bank stress tests results and the Bank of England’s Financial Stability Report at 07:00 GMT. Governor Mark Carney will speak at 09:00 GMT. At 09:30 GMT Britain will release November inflation figures.