Daily Market Report - 13/01/2016

GBP

The pound tumbled to a five and a half  year low against the dollar yesterday. Due to UK industrial production slipping 0.7% in November, the biggest slide in 3 years, mainly due to low domestic demand for electric and gas. UK manufacturing also slipped 0.4% over the month. However all eyes on tomorrows ‘super Thursday’ Bank rate votes expected to stay at 1-0-8 2 with rates staying  at 0.50%.

Mark Carney spoke in the central bank in Paris yesterday. He warned of a rising house hold debt , expected to continue over the next decade however stating that it poses an indirect threat to the UK economy. After tomorrows rate announcement and vote, attention will turn to the BoE Monetary policy statement that may give some further indication of when interest rates will be moved higher. 

USD

No key data released yesterday, however President Obama made his final State of the Union address. He stressed that the US in his words has the "strongest, most durable economy in the world" and that "Anyone claiming that America's economy is in decline is peddling fiction,".. 

CNH

This morning China's trade balance for December today beat estimates, with a surplus of $60.09 billions. Imports year-on-year fell -7.6%, less than -8.7% prior. Exports improved from -6.8% year-on-year previously to -1.4%. These are good signals for both material imports into China, and the export-reliant Chinese economy.

OIL

WTI Oil Recovered modestly to the low 30 level, after dipping under $30 for the first time since 2003. Some small demand positivity came via a surge in China’s imports to a record 334 million tons last year, thanks to the price crash. However many analysts still have a negative view on Oil prices for 2016. Low oil prices will continue to dampen inflation expectations  across the globe.

Key Announcements

No key announcements today