Dec. 19: MARKET OVERVIEW
Risk sentiment has improved by the end of the week: Asian stocks showed good gains following growth on Wall Street on the relief that the Fed isn’t in a hurry to withdraw stimulus from the US economy. Stocks gained even despite oil stayed under pressure (Brent inched up 11 cents to $59.38 having lost over a $1.00 on Thursday). This means that investors are starting to see the positive sides in lower fuel costs. Japanese Nikkei climbed 2.0%, while Australia’s main index went up by 2.1%.
USD/JPY rose to 119.40: as the Bank of Japan maintained unprecedented stimulus. The BOJ offered a brighter view of the economy in a sign of confidence Japan can weather global market turbulence.
EUR/USD consolidates at 1.2280, slightly above the 2014 lows. Watch the GfK German Consumer Climate at 7:00 GMT.
AUD/USD remains supported at 0.8170, NZD/USD – at 0.7780. December ANZ Business Confidence above the forecast (31.5 vs. 30.4 expected).