It has been a messy session, with most currency pairs finishing not too far from where they started although not before some early US$ weakness, which saw further strength in the Euro, Yen and Commodity bloc in particular. That has since been partially reversed and further near term dollar strength now looks possible although it may just be that the next couple of sessions remain choppy, but without much direction, as traders brace themselves for the resumption of deliberations on the U.S. tax plan and the confirmation hearing for Federal Reserve Governor Jerome Powell, as the central bank’s next chair (due later today). In other markets, stocks are pretty much unchanged, while the metals are a little higher. WTI has seen some profit taking ahead of this week’s OPEC Meeting, finishing down around 1.25%.
Tuesday looks like being rather quiet, with nothing to come from Asia and then little from Europe although the UK Banking Stress Test results may see some volatility in Cable. Otherwise we have just the German Consumer Confidence to look forward to ahead of the US session, when the Case Shiller House Price Index, Richmond Fed Mfg Index and the House Price Index will be released. Today’s Fed speakers will include Powell, Dudley and Harker, and will follow up on Kaplan’s thoughts, who said yesterday that a rate is hike appropriate in “near future”. The US Treasury Secretary, Mnuchin is also due to speak, late in the day.
|INDICES / COMMODITIES|
|ASX SPI: 5983|