by SignalFactory · December 5, 2019 | 07:31:11 UTC
Risk
sentiment got a boost overnight on trade deal headlines which superseded the
prior day’s negative comments from US President Donald Trump. As the count down
to the 15th Dec tariff deadline, in a Bloomberg article, it was reported from
sources who would rather not be named, that a Sino/US trade deal was in the
making and that there had been some movement closer to an agreement of a
rollback on tariffs despite tensions over Hong Kong and Xinjiang. The news sent
equities higher for which EUR/JPY is positively correlated to.
European
data in view
Meanwhile,
eyes from here will be firmly placed on today’s European data. The final
estimate of Eurozone Q3 Gross Domestic Product is expected to remain at 0.2%
for the quarter and 1.2% for the year. This fall in before next week’s European
Central Bank meeting and will be the first with Christine Lagarde at the helm.
ECB
to hold
“We
look for the ECB to hold policy steady and have pushed back our forecast for
rate cuts by one quarter to March and June 2020. With the Eurozone growth data
having stabilized, for now, there isn’t any sense of urgency to ease further
right away, leaving Ms. Lagarde to focus on mending fences and building a
consensus in her early days,” analysts at TD Securities argued who said
that they have pushed back their rate cut forecasts by one quarter and now look
for 10bps depo rate cuts in March and June instead.
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