02.12.201909:44 Forex Analysis & Reviews: 02_12 Trader Morning Coffee

Good morning all,

While on Friday Crude Oil were being sold off dragging down also Nat Gas, we haven't seen any comparable risk-off movement in stocks. So, US indices closed the day in the red, but with small movements if compared to energy commodities.

The week is opening on the front foot with Asian indices rising and futures on EU ones all up 0.20 - 0.30 % at the moment.

Markets had ro revise trading sentiment over the weekend by a surprisingly strong industrial production in November in China. On the other hand, exports from South Korea, a worldwide electronic power force have declined for the 12th month in a row. Manufacturing PMIs in the EU and US should be watched closely today.

Forex major currency pairs are still continuously sleepy, with the FT underlining last one has been the least volatile week since the euro introduction 20 years ago. If you cannot play it through options, one should consider the opportunity of being involved in a 'pro style' CARRY TRADE with the intention of receiving interest from the bought currency: USD offers a good interest rates differential in this sense against vast majority of G10. Hedging against the forward rate would be smart, but will erase a big part of the gains (that however will need big amount investments for being interesting). Here the front Forward Curve for EurUsd in bps.

ECONOMIC DATA

• IT, GE, FR, EU Markit PMI Manifacturing
• ECB Lagarde speech 14.00 Gmt
• US ISM Manifacturing 15.00 Gmt
• US ISM Prices paid 15.00 Gmt
• CFTC Gold, Oil Net Positions 20.30 Gmt

DURING the WE

• Black Friday online sales in the US hit a record level, yet again underscoring a shift among consumers
• China's central bank says it intends to retain a prudent policy apporachas it predicts a prolonged downturn in the global economy
• German Chancellor Angela Merkel's government was thrown into doubt after her coalition partners, the Social Democrats, elected new leaders over the weekend who have threatened to pull out of the ruling pact.
• The focus of the UK election campaign has taken a swing towards the law and order following the attack at London Bridge on Friday, and the Conservatives are planning a major review of both defense and foreign policy if they win.

That's all for today

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