A quiet Asian affair this Monday, despite full markets having returned, as a lack of fresh first-tier economic releases left most majors in a tight trading range. Moderate risk-on sentiment prevailed, as markets showed a limited reaction to the weekend’s reports of N. Korea denuclearization, airstrikes in Styria and ongoing China-US trade spat.
Amongst the Asia-pac currencies, the Kiwi was the top gainer, closing out NZD shorts ahead of the key China data and FOMC minutes due this week. Meanwhile, the Aussie also held on to mild gains and neared the 0.7700 mark amid higher oil and copper prices while a broadly sidelined US dollar underpinned. The Yen lost ground to its American counterpart as the risk sentiment improved, with the Nikkei 225 index extended gains to regain the 21,700 levels.
Main topics in Asia
US Fed's Kashkari: the Fed is watching US-China stand-off closely - Bloomberg
Bloomberg is out with notes on Minneapolis Fed President Neel Kashkari who spoke with Fox News over the weekend regarding the ongoing tariff spat between China and the US.
China to ban key exports to North Korea - Reuters
Reuters is out with headlines explaining that China is banning the export of strategic items into North Korea, with a focus on weapons of mass destruction.
The Eurozone is already slipping back into recession - UK Telegraph
The UK Telegraph's Matthew Flynn is out with an op-ed piece about the state of the Eurozone's current trajectory in light of recent economic indicators.
No principle NAFTA deal - Reuters
Two Reuters’ sources have stated that there will not be a principle NAFTA deal on the books in time for the Americas Summit event later this week.
Possible air strikes underway in Syria as UN Security Council prepares to meet
Various outlets are reporting on unconfirmed air strikes taking place within Syria, possibly targeting the Syrian Air Force.
US firms urged to reject tariff plan - The Standard
China's state media has urged industrial and commercial sectors in the United States to rally against President Donald Trump's tariff plan.
PBOC’s Fan: Current trade spat with the US is an obstacle to China's rise
Following comments are delivered by the PBOC adviser Fan Gang while speaking at the Boao Forum in China on Monday.
Key Focus ahead
Heading into the European calendar on the first trading of this week, with little in store, in terms of the economic releases, except for the second-liner German trade balance, UK Halifax HPI and Sentix Investor Confidence data. The risk trends will be the main driver for the core pairs in the session ahead.
The US docket remains absolutely data dry while the Canadian housing starts and the Bank of Canada (BOC) business outlook survey will keep the NA traders busy.
EUR/USD: bull hammer ahead of key event risks this week
With a focus back to data, the German Retail Sales poor outcome and IP miss were not helpful in the case of the bulls and eyes will now turn to German Feb trade balance and EZ April Sentix index early this week.
The week ahead: Eyes on Boao Forum in China - Rabobank
Analysts at Rabobank offered their outlook for the week ahead.
China's Xi Jinping speech to be focus during Boao Forum
China's President, Xi Jinping, will be headlining the Boao Forum on Tuesday, the Asiatics' version of Davos, and special attention is expected to be given to Xi's words as tensions continue to ramp up between the US and China.
Soft NFP and trade tensions underpin gold ahead of CPI next week
Aside from the publication of CPI and ongoing trade tensions, the only other fundamental event that one needs to keep an eye on is the release of the FOMC’s meeting minutes, also on Wednesday. The rest of next week’s economic data are not too important.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains pressured below 1.0800 on renewed USD strength
EUR/USD stays under pressure and declines toward 1.0750 following Thursday's recovery. A renewed US Dollar uptick and a cautious mood weigh on the pair, as traders digest the Trump win and the Federal Reserve's monetary policy announcements.
GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment
GBP/USD trades in negative territory at around 1.2950 in the second half of the day on Friday. The emergence of dip-buying in the US Dollar and a tepid risk tone undermine the pair. The BoE’s cautious rate cut could check the pair's downside as traders comments from central bankers.
Gold fluctuates below $2,700 amid stronger USD, positive risk tone
Gold trades below $2,700 in the early American session on Friday and is pressured by a combination of factors. Hopes that Trump's policies would spur economic growth and inflation, to a larger extent, overshadow the Fed's dovish outlook, which, in turn, helps revive the USD demand.
Week ahead – US CPI to shift market focus back to data after Trump shock
After Trump comeback, normality to return to markets with US CPI. GDP data from UK and Japan to also be important. But volatility to likely persist as markets assess impact of Trump.
October’s US CPI rates to be the next big test for the greenback
With the US elections being over, Trump getting elected and the Fed having released its interest rate decision, we take a look at what next week has in store for the markets. On the monetary front a number of policymakers from various central banks are scheduled to speak at some point or the other.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.