EncoreFX’s daily market updates are written by our experienced and professional dealing team.
Global stocks, oil, and risk-sensitive currencies dipped overnight amid concerns on the global economic outlook following an unexpected fall in Chinese trade data.
Weak China Trade Sparks Concern on Global Slowdown
China trade data released yesterday afternoon shocked markets with results much weaker than expected, with exports falling 4.4% y/y in December amid the trade dispute, and the biggest decline in 2 years. Imports also contracted and missed expectations dropping 7.6%.
The NZD and AUD backtracked on the soft data but have since seen some relief as market optimism returned to markets. This was helped by President Trump predicting the United States would reach a trade deal with China.
GBP remains resilient ahead of crucial Brexit vote tonight
The pound rose slightly this morning in the lead up to tomorrow mornings key Brexit parliamentary vote. UK Prime Minister Theresa May attempted to swing voters by urging lawmakers to give the deal “a second look” insisting new assurances on the Irish border had “legal force”. May has warned opponents of her Brexit deal that they risk “letting the British people down” as it looks highly likely she will be defeated, with no majority for May’s deal. The most likely outcome is a request for an extension on the current 29th March deadline to leave the EU.
Locally the key focus today will be this mornings NZ Business Confidence survey released at 10am
© Copyright - EncoreFX, 2018.The information in this post is provided for general information purposes only and has been prepared without taking into account any person’s objectives, financial situation or needs and, accordingly, it does not constitute personalised financial advice under the Financial Advisers Act 2008, nor does it constitute advice of a legal, tax, accounting or other nature to any person. Before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. We recommend that investors seek advice from their usual adviser before taking any action. EncoreFX (NZ) Ltd is a registered Financial Services Provider (FSP 461386), and is a licensed derivatives issuer under the Financial Markets Conduct Act 2013. EncoreFX (NZ) Ltd has lodged a Product Disclosure Statement (PDS) for each of our derivatives with the Registrar on 21-Dec-2016. A copy of each PDS is available from us or from the Registrar at www.business.govt.nz/disclose.