Global Markets:
- Asian stock markets: Hang Seng down 4.15 %, ASX 200 gained 0.85 %, Shanghai Composite and Nikkei closed for holiday
- Commodities: Gold at $1208 (+1.15 %), Silver at $15.35 (+0.45 %), WTI Oil at $26.95 (-1.80 %), Brent Oil at $30.57 (-0.85 %)
- Rates: US 10 year yield at 1.67, UK 10 year yield at 1.42, German 10 year yield at 0.25
News & Data:
- New Zealand Business NZ Manufacturing PMI (Jan): 57.9 (prev rev 57.0)
- New Zealand REINZ House Sales (YoY) Jan: 4.3% (prev 3.5%)
- Australia Consumer Inflation Expectations (Feb): 3.6% (prev 3.6%)
- UK RICS House Price Balance (Jan): 49% (exp 52% prev rev 49%)
- Spot Gold Hits Highest Level Since May 2015
- Scramble for safety boosts yen, gold and bonds – RTRS
- S&P 500 ends flat; Fed sees risks but unlikely to reverse course – RTRS
- Oil prices fall on U.S. storage glut, ongoing economic woes – RTRS
Markets Update:
Overnight, all eyes were again on the USD/JPY. The pair began the new trading day around 113.60, but came under renewed pressure as Hong Kong markets opened and eventually collapsed to a fresh low of 112.53. Minor support can be expected at 112.00 and 111.00, but there is now no significant tech support until 110.00.
USD/JPY flows have put the US Dollar under broad pressure. EUR/USD, which fell to a low of 1.1160 during Fed Chair Yellen's speech yesterday, quickly recovered and rallied to a high of 1.1320 overnight. A retest of the 1.1340 resistance level seems imminent and should it break higher, it would pave the way for a 1.15 test.
The British Pound also bounced amid the USD weakness and GBP/USD managed to rally from yesterday's NY low at 1.4450 to a high of 1.4565 in Asia. Immediate resistance is noted at 1.4585, with 1.4667 still the key level to watch to the topside.
The main event today will be US initial jobless claims at 13:30 GMT and for those who trade the Scandinavian currencies, keep in mind that the Riksbank will decide on interest rates at 08:30 GMT.
Upcoming Events:
- 08:15 GMT – Swiss CPI
- 08:30 GMT – Swedish Central Bank Rate Decision
- 13:30 GMT – US Initial Jobless Claims
- 15:00 GMT – Fed Chair Yellen testifies
- 22:30 GMT – RBA Governor Stevens speaks
