19 Jan 2016
Relief in risk appetite may help USDJPY, GBPUSD and USDCAD to move back to STEER™ - BNPP
FXStreet (Delhi) – Economists at BNP Paribas, suggests that the release of China’s activity data overnight was ever-so-slightly disappointing, with Q4 GDP printing at 6.8% y/y (6.9% expected), industrial production at 5.9% y/y (6.0% expected) and retail sales at 11.1% (11.3% expected).
Key Quotes
“Despite this, markets are in a risk-positive mood this morning with equities, Asian currencies and G10 commodity currencies on a stronger footing. Market sentiment is likely to remain fragile, however, as investors will remain uncertain whether a floor in equities and commodities has been reached, especially with little support provided from the Fed this week with the FOMC in its blackout period.
Nevertheless, even a short-term rebound in risk appetite should allow some mis-aligned pairs to re-price, with BNP Paribas STEER™, our short-term fair value model, indicating that USDCAD has become overbought while USDJPY and GBPUSD are oversold.”
Key Quotes
“Despite this, markets are in a risk-positive mood this morning with equities, Asian currencies and G10 commodity currencies on a stronger footing. Market sentiment is likely to remain fragile, however, as investors will remain uncertain whether a floor in equities and commodities has been reached, especially with little support provided from the Fed this week with the FOMC in its blackout period.
Nevertheless, even a short-term rebound in risk appetite should allow some mis-aligned pairs to re-price, with BNP Paribas STEER™, our short-term fair value model, indicating that USDCAD has become overbought while USDJPY and GBPUSD are oversold.”