- German industrial production m/m: 0.4% vs. 0.7% expected, 0.5% previous
- German industrial production y/y: 2.2% vs. 1.9% expected, 1.6% previous
- French BoF business sentiment: 102 vs. steady at 101 expected
- Swiss retail sales: 0.9% vs. 0.4% expected, -0.7% previous
- U.K. Halifax HPI m/m: 1.7% vs. 0.3% expected, 0.6% previous
- Euro Zone Sentix indicator: 18.2 vs. 12.8 expected, 10.0 previous
- Euro Zone jobless rate: steady at 9.8% as expected
The pound selloff continued into the morning London session, probably because forex traders who were late to the pound dumping party are still trying to price-in Theresa May’s weekend statement.
Commodities fall but precious metals rise – Other than precious metals, commodities got routed during the morning London session. Oil, in particular, got hit really hard.
Oil benchmarks got torpedoed, and were leading the downhill commodities charge
- U.S. crude oil was down hard by 0.78% to $52.88 per barrel
- Brent crude oil was down hard by 0.81% to $55.90 per barrel
Base metals, meanwhile, were mixed, but mostly lower.
- Copper was down by 0.59% to $2.531 per pound
- Nickel was down by 0.04% to $10,285.00 per dry metric ton
However, precious metals were on the up and up.
- Gold was up by 0.47% to $1,178.95 per troy ounce
- Silver was up by 0.15% to $16.543 per troy ounce
The broad-based commodities retreat was likely because of the slightly stronger Greenback. The USD index up by 0.21% to 102.38 for the day. However, oil was the major loser. And market analysts blame oil’s slump on worries that rising U.S. oil rigs and, by extension, rising U.S. oil output would nullify the effect of OPEC’s oil cut deal. Demand for precious metals, meanwhile, was likely due to safe-haven flows, thanks to the risk-off vibes during the session.
Downbeat day in Europe – Europe is starting the week on a sour note, with most European equity indices in the red.
- The pan-European FTSEurofirst 300 was down by 0.60% to 1,436.28
- The blue-chip Euro Stoxx 50 was already down by 0.59% to 3,301.00
- Germany’s DAX was up down 0.43% to 11,549.50
Market analysts couldn’t pinpoint the one unifying factor for the downbeat mood, but they do point out that telecoms and travel and leisure stocks were the main losers, weighed down by negative reports related to Vodafone and Lufthansa respectively. The mining sector was also a major loser, likely because of the commodities slide.
One very noticeable exemption to the sea of red was the U.K.’s FTSE 100, very likely because of the weaker pound, which makes British exports more competitive.
- The U.K.’s FTSE 100 was up by 0.11% to 7,218.00
Major Market Movers:
GBP – The pound-selling continued into the morning London session, probably because forex traders who were late to the pound dumping party are still trying to price-in Theresa May’s weekend statement.
GBP/USD was down by 31 pips (-0.26%) to 1.2149, GBP/NZD was down by 79 pips (-0.46%) to 1.7417, GBP/JPY was down by 124 pips (-0.87%) to 141.76
JPY – The safe-haven yen reigned supreme during the morning London session, likely because of the risk-off vibes.
USD/JPY was down by 71 pips (-0.60%) to 116.68, CHF/JPY was down by 72 pips (-0.63%) to 114.55, CAD/JPY was down by 61 pips (-0.69%) to 87.92
NZD – Despite the risk-off vibes and commodities rout, the higher-yielding Kiwi ended up as the second-strongest currency of the session. There was no clear reason for this wonky price action.
NZD/USD was up by 16 pips (+0.23%) to 0.6976, NZD/CHF was up by 16 pips (+0.23%) to 0.7104, NZD/CAD was up by 37 pips (+0.29%) to 0.9256
- 3:00 pm GMT: U.S. Fed’s labor market conditions index (1.5 previous)
- 3:30 pm GMT: BOC’s business outlook survey results will be released
- 8:00 pm GMT: U.S. consumer credit ($18.40B expected, $16.02B previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical weeks!