Rising US bond yields have seen the US$ regain a little of its recent lost ground on Monday, with Sterling in particular posting losses due to re-emerging political uncertainties in the UK, with PM Theresa May under pressure from her own party. Stocks are a little lower as traders look to Wednesday’s State of the Union speech from Donald Trump and to Janet Yellen’s final FOMC Meeting, where a hawkish tone is likely. The metals are a little lower on the back of the stronger dollar, while WTI is also under pressure from concerns that rising output will dampen OPEC and Russian efforts to rid the market of excess supplies. Also weighing on the price were signs of rising US output as the number of oil rigs rose the highest since September, with the US now producing near 10 million barrels per day.
Tuesday will kick off with the Dec NZ Trade Balance (exp -$1.25mio) and the Australian January New Home Sales and the NAB Business Conditions/Confidence, while Europe will focus on the Preliminary German CPI (exp -0.6%mm, 1.7%yy; HICP exp 1.6%yy), the EU Q4 GDP (exp 0.6%qq, 2.6% yy) and the Economic Sentiment Indicator, Industrial Confidence, Services Sentiment and Business Climate, all for January. From the US, there will only be the Case Shiller House Price Index to watch although BOE Governor, Mark Carney will be speaking and WTI traders will be looking to the API Weekly Crude Oil Stock Inventory for guidance.
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