The price action in the NY session was nothing short of wicked but when the dust finally settled the risk trades took the day. US equities rallied more than +1.5% in broad terms on the back of positive sales numbers from two top discount retailers. The gains in Treasuries were pared and the 2-year yield finished the day unchanged near 0.97% while the 10-year slipped -2bps towards 2.92%. Gold defied the rally in risk once again and added about $10 to $915/oz.
In FX the yen crosses saw the most action. USD/JPY screamed higher on the big break of the 55-day SMA by 91.20, but the more than 100 pip rally into 92.25 quickly faded. The pair ended the session up a touch more than 140 points near the 91.10 level. EUR/JPY was likewise volatile and swung a full 425 points in the session from low to high. It ended about 140 pips higher as well by the 116.50 area after making a high near 118.90 earlier. EUR/USD lost about -40 pips and was sitting just below 1.28 ahead of the close. The market now gears up for US nonfarm payrolls tomorrow and we expect the price action to get even more intense then.
Upcoming Economic Data Releases (Asia Session) prev est
- 2/6 0:30 GMT AU Reserve Bank Quarterly Monetary Policy Statement
- 2/6 5:00 GMT JN Leading Index CI DEC P 81.3 79
- 2/6 5:00 GMT JN Coincident Index CI DEC P 94.9 92.3
