There were no fresh catalysts to rock the markets, so traders chose to stay in the sidelines and only caused minor ripples in the forex scene.
- U.K. Rightmove house price index dips by 1.5% vs. 1.7% decrease in November
- Theresa May rejects calls for second Brexit referendum
No data? No trading! Thanks to a lack of top-tier reports and market catalysts, traders mostly stayed in the sidelines and waited instead for higher-tier releases scheduled over the next couple of days.
Of course, it also didn’t help the bulls that Wall Street closed on a weak note last Friday. See, weak economic releases from Europe and China reinforced concerns over a slowdown in global growth.
- Nikkei is up by 0.68% to 21,519.1
- A SX 200 is up by 1.33% to 5,658.5
- Shanghai index is up by 0.01% to 2,593.985
- Hang Seng is up by 0.03% to 26,102.4
Commodity prices were a little more mixed, with gold dipping lower on the back of improved dollar demand. Meanwhile, crude oil benchmarks received some support from U.S. drilling activity falling to its two-month lows.
- Gold is down by 0.02% to $1,237.82 per troy ounce
- Brent crude oil is flat at $60.27 per barrel
- U.S. WTI is up by 0.14% to $51.27 per barrel
Major Market Mover(s):
There were no direct catalysts for the euro’s price action, but the euro ended up higher against its counterparts today. One possible reason is that traders who saw the euro drop last week are doing some bargain-hunting today.
EUR/USD is up by 9 pips (+0.08%) to 1.1312; EUR/JPY is up by 21 pips (+0.16%) to 128.36; EUR/CHF is up by 6 pips (+0.05%) to 1.1285; EUR/AUD is up by 11 pips (+0.07%) to 1.5760; EUR/GBP is up by 9 pips (+0.10%) to .8989, and EUR/NZD is up by 27 pips (+0.16%) to 1.6655.
Not surprisingly, a cautiously optimistic trading environment weighed on the low-yielding yen today.
USD/JPY is up by 10 pips (+0.09%) to 113.48; GBP/JPY is up by 11 pips (+0.08%) to 142.79; CAD/JPY is up by 12 pips (+0.14%) to 84.80; AUD/JPY is up by 10 pips (+0.12%) to 81.45, and CHF/JPY is up by 16 pips (+0.14%) to 113.74.
Watch Out For:
- 9:00 am GMT: Italy’s trade balance (1.98B EUR expected, 1.27B EUR previous)
- 10:00 am GMT: Euro Zone’s final CPI expected to maintain 2.0% reading
- 10:00 am GMT: No changes expected from Euro Zone’s final core CPI (1.0%)
- 10:00 am GMT: Euro Zone’s trade balance (14.2B EUR expected, 13.4B EUR previous)
- 11:00 am GMT: German Bundesbank monthly report
- 11:00 am GMT: U.K.’s CBI industrial order expectations