Afternoon Market Update – 06/12/2016 – by Jaz Singh

In morning trade we’ve had GDP figures for the Eurozone coming in with a small beat on the YoY data.  The immediate reaction was muted in European assets, but more recent trade has pointed to downside in the Euro with EURUSD heading towards the 1.07 level. After falling some 0.5 percent yesterday, the dollar index is relatively flat as we look towards the Fed rate decision this month. The Aussie dollar has been the biggest decliner in FX markets after the RBA decided to keep its cash rate at 1.5 percent. Philip Lowe, the Governor at the central bank, said that he expects a slow-down in the year-end growth rate which led the USDAUD pair lower by 0.5 percent. In the equity space we find the European bourses ticking higher for the day, with many analysts suggesting the ECB shall be announcing an extension of its QE programme this week. Crude oil has fallen for the first time since OPEC’s output agreement last week. This comes as market participants are sceptical as to how the supply deal shall be implemented. This afternoon we have factory orders data for the US along with trade data for both the US and Canada.