Market Brief: Pre-Christmas consumer spending boosts Eurozone inflation

A summary of news and snapshot of moves ahead of the US session.

  • Market update at 12:0 GMT: Among the major currencies, the EUR and USD were the strongest while AUD and GBP were the weakest; stocks were higher, crude oil lower and gold flat.

View our guide on how to interpret the FX Dashboard

  • EUR strengthened as Eurozone CPI inflation climbed to a six-month high of 1.3% (up from 1.0% previously but in line with expectations) thanks to strong pre-Christmas consumer spending, which saw retail sales rise a good 1.0% month-over-month in November (vs. +0.6% expected).
  • AUD was the weakest as the implied probability of a Feb rate cut rose more than 50% due to the economic damage of the wildfires raging across Australia.
  • As optimism over a phase one trade deal between the world’s largest economies rise, it is no wonder to see the yuan strengthening to its best level since August, causing the closely-followed USD/CNH pair to break down.
  • The escalation of tensions between the US and Iran may have underpinned safe-haven gold and caused a spike in crude oil prices over the past few days, but its impact on the wider markets have been minimal, even if Tehran has promised "severe revenge" for the death of Soleimani. Global stocks were rebounding, oil prices were weaker, and gold was flat at the time of writing.  

  • In major company news:
    • Aston Martin issued a fresh profit warning as its sales dropped, causing its shares to fall more than 12%.
    • Morrison shares rose 2% after the UK’s fourth largest supermarket posted better-than-expected same-store sales, even if they were down 1.7% in the second half (compared with a drop of 2.2% expected by analysts)
  • Coming up: ISM Services PMI (54.5 expected) and US factory orders (-0.6% m/m expected) at 15:00 GMT.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.