Global Markets:
- Asian stock markets: Nikkei up 0.75 %, Shanghai Composite gained 2.05 %, Hang Seng rose 1.05 %, ASX 200 rallied 0.85 %
- Commodities: Gold at $1217.70 (-1.05 %), Silver at $15.24 (-0.90 %), WTI Oil at $32.30 (+1.75 %), Brent Oil at $33.45 (+1.30 %)
- Rates: US 10 year yield at 1.77, UK 10 year yield at 1.42, German 10 year yield at 0.21
News & Data:
- Japan Nikkei Manufacturing Flash (Feb, P. 50.2 (prev 52.3)
- UK PM Cameron Sets June Date For EU Vote — BBC
- Boris Johnson Backs Campaign To Leave EU — Sky
- Gulf Markets Lose Steam As Oil Deal Optimism Fades — GT
- Japanese FinMin Aso: Risk Aversion Spreading Through Markets — BBG
- BoJ Gov Kuroda: Risk Aversion Is Excessive, Wants To See How Market Moves Affect Japanese Economy — RTRS
- Asia shares edge ahead with oil, pound slips – RTRS
- Oil prices stabilize on lower U.S. rig count, but global glut still weighs – RTRS
- Brent Oil Pares Losses as Russia Sees Output Talks Done by March – BBG
CFTC Positioning Data:
- EUR short 48K vs 63K short prior week.
- GBP short 36K vs. 36K short prior week
- JPY long 48K vs. 43K long prior week
- CAD short 45K vs. 52K short prior week
- CHF short 4K vs. 7K short prior week
- AUD long 3K vs. 6K short prior week
- NZD short 8K vs. 9K short prior week
Markets Update:
The British Pound fell sharply overnight after London Mayor Boris Johnson said that he will back the UK campaign to leave the European Union. GBP/USD opened at 1.4260, down 140 pips from Friday's close at 1.44. GBP/JPY opened at 160.50 vs. 162.00 on Friday evening, while EUR/GBP started the new trading week at 0.7785, roughly 60 pips higher from the previous NY close.
EUR/USD traded in a 1.1105-25 range overnight and flows were light. USD/JPY was supported by the rally in Asian equity markets and was able to rise to a high of 113.05 after the Tokyo open.
The commodity currencies extended their gains after Friday's rally. AUD/USD climbed from 0.7140 at the open to a high of 0.7170, while NZD/USD rose from 0.6625 to 0.6655. USD/CAD fell from 1.3785 to 1.3750 and is under renewed pressure as oil prices have bounced once again.
Upcoming Events:
- 08:00 GMT – French Manufacturing PMI
- 08:00 GMT – French Services PMI
- 08:15 GMT – Swiss PPI
- 08:30 GMT – German Manufacturing PMI
- 08:30 GMT – German Services PMI
- 09:00 GMT – Euro Zone Manufacturing PMI
- 09:00 GMT – Euro Zone Services PMI
- 09:00 GMT – Italian CPI
- 14:45 GMT – US Manufacturing PMI
The Week Ahead:
Tuesday, February 23rd
- 07:00 GMT – German GDP
- 09:00 GMT – German IFO Business Climate
- 10:00 GMT – Bank of England Governor Carney speaks
- 11:15 GMT – SNB Chairman Jordan speaks
- 13:30 GMT – FOMC Member Fischer speaks
- 15:00 GMT – US CB Consumer Confidence
- 15:00 GMT – US Existing Home Sales
- 15:00 GMT – US Richmond Manufacturing Index
Wednesday, February 24th
- 00:30 GMT – Australia Wage price Index
- 07:45 GMT – French Consumer Confidence
- 13:00 GMT – FOMC Member Lacker speaks
- 13:00 GMT – Bundesbank President Weidmann speaks
- 14:45 GMT – US Services PMI
- 15:00 GMT – US New Home Sales
- 15:00 GMT – US Crude Oil Inventories
Thursday, February 25th
- 00:30 GMT – Australian Private CAPEX
- 07:00 GMT – German GfK Consumer Confidence
- 08:00 GMT – Spanish GDP
- 09:30 GMT – UK GDP
- 10:00 GMT – Euro Zone CPI
- 10:00 GMT – Italian Retail Sales
- 13:30 GMT – US Durable Goods Orders
- 13:30 GMT – US Initial Jobless Claims
- 14:00 GMT – US House Price Index
- 21:45 GMT – New Zealand Trade Balance
- 23:30 GMT – Japan CPI
Friday, February 26th
- 07:45 GMT – French GDP
- 07:45 GMT – French PPI
- 08:00 GMT – Spanish CPI
- 10:00 GMT – Euro Zone Business Climate
- 10:00 GMT – Euro Zone Consumer Confidence
- 13:00 GMT – German CPI
- 13:30 GMT – US GDP
- 13:30 GMT – US Personal Spending
- 13:30 GMT – US Personal Income
- 14:55 GMT – US Michigan Consumer Confidence
