Nylon Handover: Volatility up as global growth concerns persist
Gold, JPY and Bonds benefited from the turmoil of the first trading session of the year which saw global growth concerns increases, following manufacturing data from China, US and Canada.
- US manufacturing contracts at its fastest pace since July 2009.
- FED Atlanta's GDPnow indicator suggests Q4 GDP now sits around 0.3, a far cry from the 2% it indicated just before Christmas.
- Not wanting to miss out on the disappointment, Canada's manufacturing also extended its contraction with the RBC/Markit read falling to 47.5 from 48.6 previously. The Greenback benefitted despite both posting poor numbers to see USDCAD an 8 day high but failed to retest the multi-year high of 1.40
- USDJPY dropped to a 54 session low as JPY saw safe haven inflows following yesterday's weak China manufacturing data set.