Quiet day for markets

January 2, 2019

The New Year’s holidays has ensured that it is a relatively quiet day for announcements. As some markets are just re-opening now, there is not a lot of information to be gleaned from looking at the previous trading session as we’ve had a public holiday in between.

The EUR/USD slightly lower than its closing price of $1.14627 as we headed into the New Year’s day public holiday. As currencies have only been open for a short time, there is to be said about the direction of the majors. The euro opened at $1.14622, dipped to lows of $1.14578 and has climbed to a high of $1.14662. The GBP/USD opened the day at $1.27459, which was just higher than its closing price of $1.27443 of two days ago. It has bumped up to a high of $1.27479 but has started to edge lower, currently sitting at lows of $1.27378.

Indices remain closed due to the public holiday, with the Dow closing at 23,332.10 on 31/12 and the Dax closing at 10,580.40 on 28/12.

The day ahead remains relatively quiet as some markets are still closed due to public holidays. Attention will soon return to the US, where there remains a partial government shutdown due to the major political parties failing to agree to a funding package that would see all government departments remain open. The sticking point for the funding package is the refusal by the opposition Democrats to agree to funding for Donald Trump’s border wall, one of his key election promises. These protracted negotiations may cause some uncertainty, which could mean volatility for markets, particularly the Dow.

Data set for release today include:

China – Caixin Manufacturing PMI

Australia – Commodity Prices

UK – Manufacturing PMI

US – Final Manufacturing PMI

Europe – European, German and French Final Manufacturing PMIs, Italian & Spanish Manufacturing PMIs


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