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Market Update 16/01/2025

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX. If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

• Soft U.S. inflation data drove Wall Street’s overnight rally, with the Nasdaq up 2.5%, S&P 500 up 1.9%, and Dow Jones up 1.8% in late North American trading. The U.S. 10-year Treasury yield fell 14 basis points to 4.65%, while oil prices rose 4.0% to $80.60 per barrel.

• U.S. December CPI rose 0.4% month-on-month and 2.9% year-on-year, meeting expectations. However, core indicators came in at 0.2% month-on-month and 3.2% year-on-year, both 0.1 percentage points below expectations. The January Empire State Manufacturing Index fell to -12.6, below the previous 2.1 and the expected 3.0.


• Following the data release, the dollar weakened broadly, and the yield curve declined across the board. AUD/USD rose from near 0.6200 to a high of 0.6247, NZD/USD climbed to 0.5651, EUR/USD broke above 1.0350, and GBP/USD surpassed 1.2300. USD/JPY fell from near 157.00 to a low of 156.25. The dollar later reversed its losses, with most major currency pairs returning to near pre-data levels. EUR/USD was an exception, falling further to a new low of 1.0257 before recovering somewhat.


• Asian stock markets closed mixed, with the Nikkei down 0.1%, Shenzhen index down 0.6%, and Hang Seng up 0.3%. Australia’s ASX 200 fell 0.2%, dragged down by the information technology and communication services sectors.


• European stock markets generally opened higher and continued to rise, with the CAC up 0.7%, FTSE up 1.2%, and DAX up 1.5% for the day.

Mid-market rates.

Currency Pair Mid-market Rate
AUD/USD 0.6225
AUD/NZD 1.1082
AUD/JPY 97.35
AUD/CNY 4.5727
AUD/EUR 0.6047
AUD/GBP 0.5086
AUD/HKD 4.8456

 

Chart of the day

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