Make India great again
Reuters reports that India will target about $56 billion in imports with tariffs of 5-10%; mostly on electronics, chemicals and handicrafts.
Belgian December business sentiment -2.0 vs -3.4 prior
Belgian business sentiment is a leading indicator. It's still negative but it's improving.
WTO arbitration deal spreads but Trump promised "very dramatic" action soon
The US essentially shut down the WTO dispute resolution system this year by blocking appointments.
However the EU, China and 15 other countries have now signed onto a separate system of dispute resolution system.
The USDJPY rebounds up toward the December ceiling
Yesterday was a down day and the technicals defined the bias.
The price fell below the December ceiling at the 109.675-723 area. That was the first break below since the move above the area and January 13. The technical breaks sent the price below the January 10/January
GBPUSD reverses lower into support
The GBPUSD moved higher after the Markit PMI manufacturing index (P) for January rose to 49.8 from 47.5 last month. That was also better than the 48.8 in December. However, the run higher ran into eager sellers at 1.3168. The swing high from January
Canada November retail sales +0.9% vs +0.6% expected
The headline is strong but the ex-autos number is more important and it's a drag despite the positive revision. Overall, I think the market was leaning towards some weakness here and this is a solid report.
Canadian retail sales and the US Markit PMIs are on the economic calendar
There is only one release from Canada and one from the United States on Friday but they're both high-tier releases.
Canada is up first with the November retail sales report due at the bottom of the hour. The consensus is +0.6% but Poloz highlighted the possibility of a miss on Wednesday. He said
The USD is the strongest while the GBP is the weakest as NA session begins
The coronavirus remains a concern, and it is likely to be a hit to the Chinese economy but it is not running away as of yet:
ForexLive European FX news wrap: Pound fails to take heart in UK PMI data beat
- NZD leads, GBP lags on the day
- European equities higher; E-minis up 0.2%
BOJ's Kuroda: Still far away from 2% inflation target
- Core inflation remains low
- Japanese domestic demand fairly strong
- Expects strength in business investment to continue