The US$ has staged a minor recovery on Monday, with the Euro unparticular trading on a softer note. This has come about despite a stronger than expected Sentix, which saw investor confidence rise to 32.9 in January, up from 31.1 and beat expectations of 31.3,. The current situation index also hit the highest level in nearly a decade at 48. The fall in the Euro has been partly put down to the weaker than expected German Retail Sales although there was no singular catalyst for the move, but some analysts are pointing towards the upcoming Italian election (Mar 4) and the political uncertainties that this will entail. The other currency pairs have remained pretty much within their recent ranges on Monday, as has been the case with commodities, leaving expectations largely unchanged. The US stock markets have made another round of new all-time highs although the ranges have been generally fairly tight and both the DJI and the S+P are pretty much unchanged on the day.
There is a bit of data ahead on Tuesday which may provide some volatility although much of it is secondary. Asia will kick off with the Australian ANZ Job Ads and Building Permits, while Japan will be back from their long weekend and will get the December Consumer Confidence Index. Europe will then follow up with the German Industrial Production, Trade Balance, EU Unemployment and the ECB Non-Monetary Policy Meeting Minutes while the US will be relatively thin, with just the NFIB Business Optimism Index and a speech from the Fed’s Kashkari. WTI traders will be looking out for the API Weekly Crude Oil Stock Inventory later in the day.
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