SHANGHAI, Jan. 11 (SMM) – The US dollar index rallied after hitting a two-day low on Tuesday, and is expected to remain range-bound. Barack Obama’s farewell speech and Trump’s press conference will be a focus of markets. Trump’s border tax and fiscal stimulus attracted market attention, rising volatility in the US dollar. SHFE base metals remained strong.
China’s currency supply in December mostly fell short of or hold flat at November’s, meaning slowing Chinese economy.
UK Prime Minister hinted on Sunday that UK will exit single market to curb migrants. Australia former prime minister also said UK should exit EU tariff alliance. This will continue to weigh down the pound. According to UK’s seasonally adjusted trade data, the country’s trade deficit will expand, compounding pressure on the pound. UK’s November industry output is promising, though.
OPEC countries reached their first agreement on output cut issue from 2008 on November 2016, constraining daily production at 32.50 million barrels in six months starting January 1, 2017. API’s crude oil inventories in the US returned to positive territory last week, while EIA’s oil inventories are expected to grow significantly, extending losses of crude oil prices.