Daily Alert: Thursday 8th December 2016

Mark Nugent Daily Alert, Dec 2016

capture201

Forex Analysis for Thursday 8th December 2016
Economic Calendar

The Canadian overnight rate remained unchanged as per expectation at 0.50%. In the UK, MPs backed PM May’s plan to trigger Article 50 by end March 2017. BoJ’s ETF purchasing seen boosting Nikkei 225 to over 21,000 level by end of next year, according to FT. New Zealand Treasury stated if the budget improves, there is scope for income tax cuts and faster debt repayments, while it also raised FY16/17 GDP target to 3.5% from 3.3% and FY17/18 target to 3.4% from 3.0%. (Newswires) New Zealand Finance Minister Bill English is set to be confirmed as the next Prime Minister after rivals conceded (Newswires). RBNZ Gov Wheeler indicates the bank is probably finished with its rate cutting cycle.

Market Reaction

The USD index continues to consolidate with a slight downwards trend. Global stocks rally before today’s ECB meeting. WTI consolidates around USD50/bbl. On the currency markets, the JPY consolidates along with the USD. The GBP takes a hit on poor Manufacturing Production data. CAD consolidates along with WTI. The NZD strengthens on news that the rate cutting cycle is probably over.

Media

Global stocks rally before ECB

Trump win causes flow to equities from bonds

ECB – investors want to know when QE will end

UK MPs vote to trigger Article 50 in March 2016, plan available beforehand

Today

ECB Minimum Bid Rate and Press Conference (news of a continuation of QE beyond March 2017 is expected. News of when QE will end is also anticipated).

[mepr-hide if=”loggedin”]

VIP Club members please [mepr-login-link] to access your Daily Alert video.

For VIP Club members, this commentary is augmented with a short daily video where I discuss the trades I am in and the opportunities for tomorrow. If you would like a free one month trial to the VIP Club you can find out more HERE.

[/mepr-hide]

[mepr-show if=”loggedin”]


Here is your Daily Alert video. I start to discuss the trades at 6:15.


There is an archive of all VIP Club member’s content on the VIP Club page.

[/mepr-show]