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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