Global Markets:

  • Asian stock markets: Nikkei unchanged, Shanghai Composite up 1.10 %, Hang Seng rose 0.60 %, ASX rallied 0.40 %
  • Commodities: Gold at $1314 (-0.10 %), Silver at $19.87 (-0.20 %), Crude Oil at $95.62 (+0.05 %)
  • Rates: US 10 year yield at 2.40

FX Update:

  • AUD – AUD/USD opened at 0.9320 and has slowly moved higher in the Asian session. The pair is sitting at an intraday high ahead of the London open and looks well bid. Offers at 0.9330 have capped the topside so far and more are seen ahead of 0.9350. To the downside, bids accumulating at 0.9280.
  • CAD – USD/CAD is under pressure ahead of the revised Canadian employment data that will be released this afternoon. The market is expecting an upside revision, but this is far from being a sure thing. Stops sub-1.0875 and good bids from specs pre-1.0850. Offers placed at 1.0920 and towards 1.0950.
  • EUR – EUR/USD made it again above 1.34 yesterday, but momentum faded away quickly. Despite the crowded positioning, there is still good selling interest above the big figure. To the downside, there is plenty of demand from sovereign names and option-related buyers, so it seems the pair will be stuck in this range until there is a catalyst than can finally lead to a breakout.
  • JPY – USD/JPY opened the day at 102.45 after a quiet NY session. The pair moved slightly higher ahead of the Tokyo open, as traders were expecting demand the Tokyo fix, but the topside was capped by exporters supply. Worries about geopolitical tensions are decreasing, leading to less demand for the Yen. With risk appetite improving and global equities bouncing, it’s likely USD/JPY will slowly march towards 103.00 in the near-term.

Upcoming Events:

  • 08:30 GMT – UK GDP (0.8 % QoQ, 3.1 % YoY)
  • 12:30 GMT – US PPI (0.1 % MoM, 1.8 % YoY)
  • 13:15 GMT – US Industrial Production (0.3 % MoM)
  • 13:55 GMT – US Michigan Consumer Sentiment (82.5)