Article Highlights

  • Canadian wholesale sales up 0.7% vs. 0.4% forecast
  • Euro zone consumer confidence index fell from -5 to -6
  • U.S. banks closed for Presidents’ Day
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U.S. traders were out on a holiday but that didn’t stop the Greenback from raking in some gains against its forex rivals during the latest trading session.

Major Events:

Is risk aversion back? – Risk-off flows seem to be favoring the dollar once more, as traders are turning their attention to geopolitical risks and resurfacing debt concerns. Trade data from Japan over the weekend has been subpar while U.S. equities have been surging, leaving the dollar as the preferred safe-haven.

Analysts predict that the U.S. stock market could be in for another bullish run this week, with futures hitting new highs and several retailers gearing up to print their quarterly earnings figures in the next few days. In particular, Macy’s, Walmart, and Home Depot will be printing their financial reports just before U.S. markets reopen.

Trump watch: Still waiting for the tax plan  – Traders continue to keep their hopes up for Trump’s “phenomenal” announcement on taxes, anticipating even stronger returns for U.S. markets if the President confirms that his campaign promises on lowering corporate taxes and lessening the burden on the middle class will be implemented.

So far, the Donald named outspoken Lieutenant General Herbert Raymond McMaster as his new national security adviser. McMaster is known for his strong view that Russia is a threat to the U.S. and isn’t one to back down when questioning his superiors. Speaking of Russia, its UN ambassador Vitaly Churkin died in New York after falling ill with a cardiac condition at work.

Major Market Movers:

USD –  Even after a bit of consolidation, the scrilla managed to squeeze out some gains as investors seem to be bracing themselves for another solid U.S. market performance this week.

EUR/USD slid from a high of 1.0630 to a low of 1.0586, USD/JPY bounced off a low of 113.08 to a high of 113.43, USD/CHF is up from 1.0016 to 1.0054, and USD/CAD rose from 1.3088 to 1.3131.

Watch Out For:

  • 12:30 am GMT: RBA monetary policy meeting minutes
  • 12:30 am GMT: Japanese flash manu PMI (52.1 expected, 52.7 previous)

See also:

London Session Recap

Asian Session Recap

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