Daily Morning Report 15.01.2016

The dollar slipped lower against the euro and the yen on Friday but remained broadly supported as oil prices continued to be hammered lower and concerns over Chinese growth persisted.

EUR/USD added 0.15% to 1.0882.

Oil prices remained under pressure on Friday and were hovering at $30.33 a barrel in late Asian trade.

Brent crude, the global benchmark, fell below the $30 per barrel threshold for the first time since 2004 on Thursday, pressured lower by a global supply glut and fears of a slowdown in China.

Elsewhere, the People’s Bank of China set a slightly weaker mid-point rate for the yuan on Friday, but the fix has been broadly steady for more than a week.

The euro had weakened on Thursday, after the minutes of the European Central Bank’s December meeting showed that some members of the governing council favored a larger cut to the deposit rate than was eventually announced.

The minutes also said the possibility was raised of expanding monthly asset purchases under the central bank’s quantitative easing program from the current level of €60 billion, or of frontloading asset purchases.

USD/JPY slid 0.30% to trade at 117.71.

Speaking to parliament on Friday, Bank of Japan Governor Haruhiko Kuroda blamed declining global oil prices for Japan’s low inflation and reiterated that the country was undergoing a moderate economic recovery.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.14.