It has been a quiet start to the week although the US$ was once again under some mild downside pressure against most major currencies on Monday, as caution about the economy and expectations for an accommodative Fed on Wednesday kept it on the back foot. The DXY remains close to the weekend levels, at 96.50 while US 10Y yields are at 2.605%. As for the other currencies, the Aud$ had a quick move higher yesterday, although some of those have since been given up, underpinned by a strong performance in Chinese stocks (Shanghai Comp; +2.47%), while Cable remains very choppy because of Brexit, particularly today after the UK Parliament Speaker said that he will not allow another Brexit vote, potntially causing a constitutional crisis in the UK, unless the EU agrees to further changes.
Elsewhere there was very little activity. The US stock indices are up by just 0.1%/0.2% while the metals are flat. The other interest lay in WTI which is steadily heading towards 60.00 pb, and ended Monday, up 0.85% at 59.25. WTI is underpinned by the wishes of OPEC and Russia that production cuts will continue to kick the oil prices higher
Tuesday will see a bit of action, beginning with the NZ WBC Consumer Survey and the Australian House Price Index, followed by the RBA Minutes and a speech from the RBA’s Kent. Later on, the UK Unemployment data will be released (Claimant Acc; exp +3K, Unemployment Rate @ 4.0%), while the EU will look to the German/EU ZEW Economic Sentiment Survey for guidance. From the US we get the January Factory Orders (exp -0.5%) and the API Weekly Crude Oil Stock Inventory. Kiwi traders will also look at the Global Dairy Trade Index (exp +0.1%) at midday London time.
Economic data highlights will include:
Tue: WBC NZ Q1 Consumer Confidence Survey, Australian House Price Index, RBA’s Kent Speech, RBA Minutes, UK Unemployment, German/EU ZEW Economic Sentiment Survey, EU Labour Costs, US Factory Orders, Global Dairy Trade Index, API Weekly Crude Oil Stock Inventory,
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