EUR/USD
With yesterday’s after-market comments from ECB’s Lautenschlaeger being very much in-fitting with those of ECB’s Draghi the pair saw a particularly muted start to the session. Further comments from ECB’s Noyer and Linde painted a similar picture to that of recent ECB rhetoric saying that interest rates are to stay low for an extended period of time and the central bank are preparing work on ABS purchases, thus failing to provide the pair with any direction. From a technical perspective, the pair traded in a relatively rangebound manner for a majority of the session after finding support at the crucial 1.3600 handle, where there was also said to be around USD 1bln worth of expiries at today’s NY cut. However, EUR/USD saw a modest bout of upside in the latter stages of trade alongside broad-based USD weakness. Looking ahead, once again tomorrow sees a lack of tier 1 data from the Eurozone, with the major risk event for the pair coming after the European session in the form of the FOMC minutes.
GBP/USD
All eyes for GBP/USD today were on the UK industrial and manufacturing production data, with the release expected to show a 6th consecutive monthly expansion. However, unlike the recent slew of UK data, today’s releases fell short of market expectations with the M/M coming in at -0.7% vs. Exp. +0.3% and thus marking the largest decline in the reading since August 2013. This saw an immediate fast-money move lower in GBP/USD by around 40 pips and brought the pair back below the crucial 1.7100 level. However, these losses were then consequently largely retraced amid a bout of USD weakness late in the session. Looking ahead, tomorrow sees an absence of tier 1 data from the UK, although sees newly-appointed MPC member Shafik questioned by UK Commons Treasury Committee.
USD/JPY
Overnight, USD/JPY continued to trade below its 200DMA seen at 101.82, albeit marginally as major USD pairs continued to hold on to yesterday's US/EU session gains following a softer USD. Heading into the European session, this level was broken to the upside following JPY weakness stemming from a modest resurgence in the Nikkei 225. Although, this move higher was short-lived amid a move higher in fixed income products, with USD losing ground to JPY amid unfavourable interest differential flows. This move was then extended alongside the Wall Street open as US participants sent stock futures lower, which consequently saw USTs prosper and add further momentum to the downside for USD/JPY. This saw the pair move lower before finding support at 101.50 with RANsquawk sources noting bids at the level.
Recommended Content
Editors’ Picks
EUR/USD extends sideways grind below 1.0900
EUR/USD stays in a consolidation phase below 1.0900 following the previous week's rally. In the absence of high-tier data releases, the US Dollar stays resilient against its rivals as investors scrutinize comments from central bank officials.
Gold retreated from record highs, maintains the upward bias
Gold rose sharply at the beginning of the week on escalating geopolitical tensions and touched a new all-time high of $2,450. With market mood improving modestly, XAU/USD erases a majority of its daily gains but manages to hold above $2,400.
GBP/USD holds steady near 1.2700, Fedspeak in focus
GBP/USD fluctuates in a narrow channel near 1.2700 on the first trading day of the week. The cautious market stance helps the US Dollar hold its ground, while market participants assess remarks from central bank officials ahead of this week's key events.
Ripple stays above $0.50 on Monday as firm backs research on blockchain and quantum computing
XRP price holds steady above the $0.50 key support level and edges higher on Monday, trading at 0.5130 and rising 0.70% in the day at the time of writing.
Week ahead: Nvidia results and UK CPI falling back to target
What a week for investors. The Dow Jones reached a record high and closed last week above 40,000, for the first time ever. This is a major bullish signal even though gains for global stocks were fairly modest on Friday, and European stocks closed lower.