The AUD and NZD continues to lead the majors on the upsideUS sees limited scope for nuclear talks with ChinaEquity futures putting in a solid run so far todayEurozone economic sentiment 96.6 vs 95.8 expectedChina’s Xi says committed to stable relationship with US based on win-win cooperationRate pricing for the ECB largely unchanged after the German statewide CPI dataEURUSD trades back below 1.11 after German statewide CPIGerman Bayern YY 2.1% vs 2.5% priorRemy Cointreau Pernod Ricard shares surge 8% after China skips brandy tariffsChina’s Commerce Ministry opts against anti-dumping measures on EU brandyRiksbank’s Bunge says economy is in a mild recessionSpanish flash HICP YY 2.4% vs 2.5% expectedWhat are the main events for today?Today’s FX option expiry levels for the NY cutSwedish GDP YY 0.5% vs 0.0% expectedUkraine strikes oil and artillery depots in Rostov Kirov and Voronezh regionsJapan consumer confidence index 36.7 vs 36.7 priorRisk sentiment leaning slightly positive head of the cash openNZDUSD tests close to 0.63 after earlier NZ dataFinally a day with a bit more excitement on the calendar
Markets:
NZD leads, EUR lags on the dayEuropean equities higher;
S&P 500 futures up 0.18%US 10-year yields down 1 bps to 3.829% Gold up 0.75% to $2,522WTI
crude up 0.32% to $74.76Bitcoin
up 1.63% to $60,005
It was a more lively session today with some notable moves in the FX and equity markets. The EUR has been the most notable mover in the FX space as the single currency fell on soft German statewide CPI figures. Note though, that the market’s pricing for ECB rates was unchanged.
In the equity space, we’ve seen the S&P 500 and the Nasdaq erasing most of yesterday’s weakness although the lack of catalysts will likely keep the price action rangebound until next week.
Overall though, there wasn’t any notable news release or development in the macro or geopolitical space and we keep waiting for next week where we will get many top-tier economic data including the NFP report.
The attention will now switch to the US jobless claims figures where we will likely need initial claims to spike above the 260K level to trigger a big market reaction.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
