Global Themes

Poor data

The US dollar jumped higher on Friday after Chinese data sharply missed expectations.

Chinese industrial production numbers fell from 5.9% to 5.4% in November while retail sales dropped from 8.6% to 8.1%.

The news hit global sentiment with the US’s Dow Jones index ending at the lowest level since May 2018.

Safe havens

The USD jumped higher as markets favoured safe haven currencies.

The Japanese yen also climbed higher.

The Australian dollar fell as worries about Chinese growth hurt the currency.

Fed ahead

This week, the US Federal Reserve meeting, due on Thursday, is clearly the major event for the week.

Otherwise, the Bank of Japan and Bank of England also meet on Thursday.

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