UK Gas Prices Drop as Energy and Currency Markets Stay Mixed
Monday, December 16th, starts with a heavy data calendar, including PMI releases across Europe, the UK, and the U.S. Energy markets remain mixed, while currencies are holding steady. Traders are keeping a close eye on speeches from ECB officials for further policy clues.
Key Data Out Today
- ECB Speeches: President Lagarde and other ECB members are set to speak throughout the day.
- HCOB PMI (Germany and Eurozone, Dec Prelim): Manufacturing, Services, and Composite PMIs are closely watched for economic direction.
- UK S&P Global/CIPS PMI (Dec Prelim): Composite, Manufacturing, and Services data will set the tone for the pound.
- U.S. NY Empire State Manufacturing Index (Dec): Expected to provide insights into industrial activity.
Energy & Precious Metals
- Crude Oil: WTI is down slightly at $70.95 (-0.47%), while Brent fell to $74.29 (-0.26%). Despite weekly gains, ongoing demand concerns weigh on prices.
- Natural Gas: Prices dropped 3% to $3.18/MMBtu as milder weather forecasts eased demand expectations.
- Gold: Rose 0.21% to $2652.82/oz, supported by safe-haven demand.
- Silver: Gained 0.51% to $30.62/oz, recovering slightly after last week’s decline.
Currency Movements
EUR/USD
- EUR/USD: Up 0.08% to 1.0509, as markets await ECB speeches for further direction. The pair remains sensitive to monetary policy signals from both the ECB and the Federal Reserve.
GBP/USD
- GBP/USD: Steady at 1.2633 (+0.12%) ahead of UK PMI data. The pound shows resilience despite recent economic uncertainties.
AUD/USD
- AUD/USD: Gained 0.19% to 0.6371, supported by a slight bounce in commodity-linked sentiment. The Australian dollar often reflects global risk appetite and commodity price movements.
NZD/USD
- NZD/USD: Up 0.29% to 0.5781, trimming last week’s losses. The kiwi dollar is influenced by similar factors as the AUD, including commodity prices and risk sentiment.
USD/JPY
- USD/JPY: Softened slightly to 153.61 (-0.09%), with traders watching for yield differentials. The yen’s movement is closely tied to interest rate differentials between Japan and other major economies.
USD/CNY
- USD/CNY: Edged up 0.10% to 7.2883, reflecting ongoing economic uncertainty in China. The yuan’s value is influenced by China’s economic performance and trade relations.
USD/CHF
- USD/CHF: Down 0.22% to 0.8912 as the Swiss franc strengthened on risk aversion. The franc often serves as a safe-haven currency during periods of market uncertainty.
USD/CAD
- USD/CAD: Dipped slightly to 1.4227 (-0.09%), as oil prices stabilize. The Canadian dollar is closely linked to oil price movements due to Canada’s status as a major oil exporter.
USD/MXN
- USD/MXN: Flat at 20.11 (-0.03%), holding steady amid broader dollar weakness. The peso’s stability reflects balanced market sentiment towards emerging markets.
USD/INR
- USD/INR: Up 0.04% to 84.81, reflecting cautious sentiment in emerging markets. The rupee’s movement indicates investor sentiment towards India’s economic prospects.
Things to Keep a Watch On:
- ECB Speeches: Remarks from Lagarde and other ECB officials will set the tone for the euro.
- UK and Eurozone PMIs: Watch for signs of economic activity, particularly in manufacturing and services.
- Energy Prices: Natural gas and coal trends remain critical as winter demand fluctuates.
- U.S. Manufacturing Data: The Empire State Index will provide fresh insights into industrial health.