Market News & Analysis
Market Brief: Last CB rate decisions for 2019 fail to inspire volatility
Fawad Razaqzada December 19, 2019 11:45 PM
- Market update at 12:30 GMT: In FX, the AUD was the strongest, while the NZD and EUR brought up the rear. European stocks were slightly weaker in a quiet session. Gold and silver were a touch lower, while copper was higher. Bitcoin was lower after Wednesday’s big gains.
- Stocks barely reacted to news Donald Trump became the third US president in history to be impeached. The markets fully expect Trump will NOT be ousted by his GOP chums at the Senate. There was no other major fundamental news to provide direction for equity prices.
View our guide on how to interpret the FX Dashboard
- AUD rose as Australian employment data finished the year on a brighter note. Unemployment fell to 5.2% and almost 40K net jobs were added, beating 25.9K expected.
- GBP came off lows after the BoE’s rate decision. The central bank decided to leave rates and QE unchanged as expected, with the votes split 7-2 in favour of no rate cuts, also as expected. The Bank said global growth has shown tentative signs of recovery. But domestically, it was too soon to gauge the impact of Prime Minister Boris Johnson's election victory in terms of lifting the Brexit uncertainty that has hung over the economy. Earlier, UK retail sales had disappointed expectations with an unexpected 0.6% m/m drop vs. +0.3% gain expected.
- SEK weakened despite news Sweden's central bank (Riksbank) hiked interest rates by 25bps to take them back to zero.
- JPY strengthened slight after the BOJ decided to stand pat again at their final meeting of the year. The central bank kept rates at -0.1% and their 10-year JGBP yield at around 0%.
- Coming up:
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.