Article Highlights

  • AU home loans rose by 0.9% vs. 0.1% expected, -0.6% previous
  • AU new motor vehicle sales up by 0.3% vs. -0.7% previous
  • No revision to Japan’s industrial production. Still at 1.5% in November
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The dollar lost a couple more pips against its major counterparts, as Trump-related jitters trumped (pun intended) concerns over Theresa May’s speech later today.

Major Events:

Theresa May Brexit announcement – The biggest story of the hour is Downing Street “leaking” statements that hint at what U.K. PM Theresa May would say in her speech later today.

Apparently, May will outline a “12-point plan” for Brexit as she pinky swears that the U.K. will not have a membership “that leaves us half-in, half-out.” Guess she meant business when she said “Brexit means Brexit,” huh?

Read Forex Gump’s latest update to see what you should know about the U.K.’s top-tier events this week!

Dollar slides some more – Uncertainty ahead of Donald Trump’s inauguration are spooking investors, enough to send Asian bourses lower for a second consecutive day today. If you recall, market players pushed the dollar higher last year on speculations that the Donald would make good on his plans to cut taxes and increase infrastructure spending.

But that was 2016. This year Trump has yet to give details on his plans. Not a good play especially after the IMF just raised its U.S. growth forecasts on the back of Trump’s fiscal stimulus plans. More importantly, it looks like his other, more controversial plans like building a wall and increasing trade protectionism are more likely to come into fruition judging by his current nominations.

Read: How to Trade the Trump Presidency

Jitters over Trump’s inauguration and Theresa May’s speech later today are probably why Australia’s A SX 200 is down by 0.85%, the Shanghai index is down by 0.25%, Hang Seng is only up by 0.52%, and Nikkei dropped to its lowest since early December before levelling off with “only” a 1.36% loss. Yowza!

Major Market Movers:

GBP – Whether it’s profit-taking from yesterday’s shorts or a burst of appetite over “leaked” details of May’s speech, the pound recovered pips from its major counterparts.

GBP/JPY inched 18 pips higher (+0.13%) to 137.68, GBP/USD popped up by 26 pips (+0.22%) to 1.2072, and GBP/CHF crawled 9 pips higher (+0.07%) to 1.2192.

USD – The dollar was one of the biggest losers of the session, as Greenback bulls take profits ahead of Trump’s inauguration on the 20th.

EUR/USD popped up by 22 pips (+0.21%) to 1.0625, USD/JPY dropped by another 10 pips (-0.09%) to 114.05, and USD/CHF fell by 13 pips (-0.13%) to 1.0100.

Comdolls – Commodity-related currencies took advantage of the overall dollar losses as well as the uptick of commodity prices like gold and iron ore.

AUD/USD inched 7 pips higher (+0.09%) to .7484, USD/CAD slipped by 16 pips (-0.12%) to 1.3154, and NZD/USD shot up by 10 pips (+0.14%) to .7114.

Watch Out For:

  • TBA: Theresa May’s Brexit speech. Here’s what you should expect.
  • 8:45 am GMT: French government balance
  • 10:00 am GMT: Italian trade balance (3.84B EUR expected, 4.30B EUR previous)
  • 10:30 am GMT: U.K.’s CPI (y/y) (1.4% expected, 1.2% previous)
  • 10:30 am GMT: U.K. core CPI expected to remain at 1.4%
  • 10:30 am GMT: U.K. PPI input (2.2% expected, -1.1% previous)
  • 10:30 am GMT: U.K. PPI output (0.3% expected, 0.0% previous)
  • 11:00 am GMT: German ZEW economic sentiment (18.9 expected, 13.8 previous)
  • 11:00 am GMT: Euro Zone ZEW economic sentiment (24.2 expected, 18.1 previous)

See also:

U.S. Session Recap
London Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

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Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!