Global Markets:
- Asian stock markets: Nikkei up 0.96 %, Shangai Composite gained 0.45 %, Hang Seng rose 1.80 %, ASX 200 fell 0.10 %
- Commodities: Gold at $1237 (-0.15 %), Silver at $15.15 (-0.15 %), WTI Oil at $33.00 (-0.20 %), Brent Oil at $35.06 (-0.65 %)
- Rates: US 10 year yield at 1.72, UK 10 year yield at 1.35, German 10 year yield at 0.13
News & Data:
- New Zealand Trade Balance (Jan): NZD 8 Mln (exp NZD -217 Mln prev NZD -53 Mln)
- UK GfK Consumer Confidence (Feb): 0 (exp 3 prev 4)
- Hong Kong Trade Balance Jan: HKD -17.5 Bln (exp HKD -25.2 Bln prev rev HKD -45.7 Bln)
- BoE Gov Carney: Prolonged Period Of Low Rates Creates Stability Risks
- Carney: It's Wrong To Think Central Banks Are Out Of Ammunition
- Carney: World Risks Being Trapped With Low Growth, Inflation
- Carney: Low Rates Give More Room For Fiscal Policy If Needed — RTRS
- PBoC Fixes Yuan At 6.5338 (prev 6.5318)
- Asia shares inch ahead as G20 talks, oil holds gains – RTRS
- China seeks to manage economic reform expectations at G20 – RTRS
- Emerging Assets Find Relief as Commodities Rally With Currencies – BBG
- Yen Halts Three-Week Advance as Traders Wait for G-20 Action – BBG
Markets Update:
The US Dollar weakened overnight, as risk appetite among traders and investors improved. EUR/USD rose from 1.1020 in the early Asian session to a high of 1.1070, while GBP/USD climbed from 1.3950 to 1.4010. In GBP/USD, key resistance is now seen at 1.4060 and 1.4155 and the pair is likely to struggle as Brexit fears continue to weigh on the Pound.
USD/JPY was supported by the rise in equity indices and it rose from 112.70 to a high of 113.22 after the Tokyo open. The next notable resistance level lies at 113.40, followed by 114.00/25. To the downside, expect intraday support at 112.50 and 112.10.
The commodity currencies recovered the losses from the previous few trading sessions. AUD/USD climbed from 0.7210 to 0.7260 in Asia. So far, it is still struggling with 0.7260 resistance, but a break above would then pave the way for a 0.74 test. NZD/USD already broke above the recent key resistance level that has capped the topside for the past two weeks – 0.6750. It rallied to a high of 0.6775 and further gains seems likely, with no significant tech resistance until 0.6885.
Upcoming Events:
- 07:45 GMT – French GDP
- 08:00 GMT – Spanish CPI
- 10:00 GMT – Euro zone Consumer Confidence
- 13:00 GMT – German CPI
- 13:30 GMT – US GDP
- 13:30 GMT – US Personal Income & Spending
- 15:00 GMT – US Michigan Consumer Confidence
