Friday, January 2, 2015

Dollar ends 2014, starts 2015 on a high note

•     Dollar ends 2014, starts 2015 on a high note
–    Hit high for 2014 vs EUR, CHF and NOK, also on DXY index
–    Starts 2015 higher than all of 2014 as measured by the Bloomberg USD index

•     NZD, AUD fall as China official PMI falls
–    While China official PMI beat estimates, it corroborated the decline in HSBC/Markit index from November to December and so was negative
–    NZD, AUD weaken as a result
–    I expect China to continue to slow and hence AUD, NZD to be weak in 2015

•     Questions creep in about ECB QE
–    Can ECB take the decision to share risk among countries if politicians haven’t?
–    Can ECB buy Greek bonds if the country isn’t in an IMF program?
–    Delay of ECB QE might hurt euro as it means worse outlook for deflation, economy

•     Today:
–    Eurozone: Final PMIs for Germany, France, Eurozone
–    UK:  Manufacturing PMI, mortgage approvals

–    US: Markit PMI, ISM manufacturing

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