Start of 2016 on Money market

chinese economy driving world economy to?

Slippery  recovery on money market in currencies is still not sign of recovery since China is still in guts to make more damage to world economy

Positive yield for US and European shares as well as US vs. JPY rebound is still under question since all influences were ignoring falling prices of China stocks during night. China indices fell on average 5,9% and they were closed on lowest level. As result of measures of China central bank,  Yuan  its strongest onshore in 4 months.

With this kind impacts,  Chinese market will determine movement on world stage overshadowing market sentiment and fundamentals.

In other hand we have US dollar strengthening  versus the euro and Japanese yen and weakening vs. commodity but under of anticipation of FED speaking. Estimates are that fourth quarter earnings is weaker 4% according to FactSet and that would be third quarter fall in row.

Today we expect that industrial production numbers for UK came in public together with Bank of England policy announcement. Low inflation, eased up by weak currency vs. USD and EURO and oil prices making investors very nervous.

European bonds yields are not to expect this week since major reports are not scheduled before end of weak.

Central European Bank is supporting the economy, and that’s poised to help the region’s companies which are traded at a level that’s about 8 percent cheaper than U.S. stocks.

CFTC report says that many traders adding their short EUR/USD positions at the start of 2016. Short Euro positions are now two times higher than they were in last three years average, this could trigger  more traders to be squeezed out which could  raise EUR/USD rate.

Twelve year high for USD/CAD at beginning of 2016 caused mainly by crude oil prices feeling down on prices und 32$ for a barrel, hits hard Canada economy.

AUD and NZD have raised slightly to USD. Smaller growth rates than in third quarter are in shadow of further development in China.

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