Trading was relatively subdued on Monday’s New York session as most market participants were out enjoying the President’s Day holiday. The Greenback took advantage of this to recoup some of its losses in the previous week.
- U.S. and Chinese markets closed on holidays
- New Zealand quarterly PPI input prices up 0.9% vs. 0.3% forecast
- New Zealand quarterly PPI output prices up 1.0% vs. 0.4% forecast
- Spanish Economic Minister Luis De Guindos as next ECB VP?
- Greece gets closer to securing next set of loan funds
- BOE Gov Carney: Bitcoin failed as a store of value
- USD & JPY unwinding previous week moves
Quiet trading on market holidays
Market were off to a slow start for the week, even as European banks and markets remained open for trading. Major currencies are probably bracing for top-tier events later on in the week, but crude oil was able to rake in some gains.
- Spot gold was down $0.11 to $1,346.31 an ounce
- WTI crude oil was up 82 cents at $62.50 per barrel
- Brent crude oil as up 89 cents at $65.73 a barrel
However, futures are pointing to a potential return of risk-off flows in the next sessions.
- Nikkei 225 futures are down 42.5 points to 21,943.0 (-0.18%)
- S&P ASX 200 futures are up 15 points to 5,881.5 (+0.24%)
- TOPIX futures are down 1.50 points to 1,760.75 (-0.09%)
Higher NZ producer prices
New Zealand impressed with stronger than expected quarterly PPI figures in its latest report, keeping some glimmer of hope that the RBNZ can still shift to a more hawkish stance at some point.
Input prices rose 0.9% versus the estimated 0.3% gain but lower than the earlier 1.1% increase. Output prices posted a 1.0% increase versus the estimated 0.4% uptick but also lower compared to the previous 1.0% gain.
Components of the report revealed that the gains were mostly due to rising dairy prices. Apart from that, output prices were also lifted by a 9.3% increase in prices from the mining industry while inputs were spurred by petroleum and coal price gains.
Major Market Mover(s):
The dollar took advantage of the low liquidity environment to sneak in some gains from its rivals.
USD/JPY recovered from 106.49 to 106.79, EUR/USD edged lower to a low of 1.2368 but retreated back to 1.2416, GBP/USD dipped to a low of 1.3958, and USD/CHF is up to a high of .9320.
The yen also took a break from its previous rallies as traders probably booked some profits ahead of another busy week.
EUR/JPY bounced off a low of 131.89 to a high of 132.52, GBP/JPY is up to 149.41, AUD/JPY recovered from a low of 84.19 to a high of 84.56, and NZD/JPY is up to 78.70.
Watch Out For:
- 12:30 am GMT: RBA monetary policy meeting minutes