fundamental_images_10Market today was dominated the US-China trade deal expectations heightened ahead of the 2-day meeting between the top US diplomats and China’s Vice-Premier Liu in Washington, starting later today, rather than the neutral FOMC minutes. The USD/JPY pair consolidated near 110.70, trapped in a tight range, while EUR/USD and GBP/USD struggle for direction.
Today’s EUR macro calendar is an eventful one, with flash manufacturing and services PMI reports from across the Euro area economies dropping in from 08:15 GMT. The German and Eurozone PMI readings will be closely watched for fresh hints on the Eurozone economic outlook. From the UK docket, we have the public sector net borrowings data due at 09:30 GMT. Also, of note remains the ECB January monetary policy meeting accounts due at 12:30 GMT.
The NA session sees the US jobless claims, durable goods orders and Philly Fed manufacturing index, all releasing at once at 13:30 GMT. From 14:45 GMT, the traders will closely eye the US Markit manufacturing and services PMI reports and existing home sales data for fresh dollar trades. The focus will also remain on the developments surrounding the Brexit issue, the US-China trade talks and the EIA weekly crude stocks data for fresh trading impetus.
WTI trades around $57.30 during early Europe trading on Thursday after the American Petroleum Institute (API) released its weekly crude oil stock data. Next up in the oil traders’ radar will be the official reading of the US stock change from the Energy Information Administration (EIA), up for 16:00 GMT today. In addition to stock data, the arrival of China’s Vice Premier Liu He to Washington to discuss future trade ties with the US diplomats will also be a key event for the crude. The reason being China is in the top-list of world’s largest crude consumers and its trade spat with the US has so far challenged the global growth.
Gold prices dipped on Thursday as risk appetite sharpened following reports that the U.S. and China are working on multiple memorandums of understanding (MoU) for a trade deal. Minutes from the U.S. Federal Reserve’s January meeting received some focus earlier in the day, as the Fed signalled it was preparing to stop trimming its balance sheet later this year. Moving ahead, market participants now look forward to the US economic docket, highlighting the release of durable goods orders and Philly Fed manufacturing index, which might influence the USD price dynamics and produce some short-term trading opportunities.