Market Roundup
- PBOC sets Yuan mid-point at 6.4832 / dollar vs last close 6.4887
- S. Africa's forward position at $1.196 bln end-December vs $1.732 bln in November - Cbank
- S. Africa's foreign currency reserves up by $344 mln to $42.952 bln in December - Cbank
- S. Korea's regulator chairman says cannot leave market to lead abnormal virtual currency trade
- S. Korea's regulator says looking at all possible measures to curb negative impact from virtual currency trade, including shutdown of related institutions
- S. Korea's regulator says carrying out field inspections of six banks regarding handling of virtual currency trading accounts
Economic Data Ahead
- (0200 ET/0700 GMT) Germany Industrial Orders MM
- (0315 ET/0815 GMT) Switzerland CPI
- (0330 ET/0830 GMT) United Kingdom Halifax House Prices MM/ 3M/YY
- (0430 ET/0930 GMT) Euro Zone Sentix Index
- (0500 ET/1000 GMT) Euro Zone Retail Sales
- (0500 ET/1000 GMT) Euro Zone Business Climate
- (0500 ET/1000 GMT) Euro Zone Economic Sentiment
- (0500 ET/1000 GMT) Euro Industrial Sentiment
- (0500 ET/1000 GMT) Euro Zone Services Sentiment
- (0500 ET/1000 GMT) Euro Zone Consumer Confidence Final
- (0500 ET/1000 GMT) Euro Zone Cons Inflation
Expectations
- (0500 ET/1000 GMT) Euro Zone Selling Price Expectations
Key Data Ahead
- N/A FOMC member Bostic’s speech
FX Beat
DXY: The dollar index steadied as an uptick in the average hourly wage seen in Friday’s U.S. labor market report lifted the 10-year Treasury yields. The greenback against a basket of currencies traded flat at 92.04, having touched a low of 91.75 last week its lowest since Sept. 20. FxWirePro's Hourly Dollar Strength Index stood at -19.43 (Neutral) by 0500 GMT.
EUR/USD: The euro consolidated within a narrow range, as the positive tone seen around the U.S. Treasury yields continued to offer some support to the greenback against its major peers. The European currency traded flat at 1.2024, having touched a high of 1.2088 on Thursday, its highest since Sept. 8. FxWirePro's Hourly Euro Strength Index stood at -63.85 Bearish) by 0400 GMT. Investors’ attention will remain on Eurozone Sentix Investor Confidence, ahead of U.S. consumer credit and FOMC member Bostic’s speech. Immediate resistance is located at 1.2090, a break above targets 1.2130. On the downside, support is seen at 1.2001 (Jan 3 Low), a break below could drag it lower 1.1973 (10-DMA).
USD/JPY: The dollar rose, extending gains for the fourth straight session, after data showing slower U.S. jobs growth did little to dent expectations for further Federal Reserve interest rate increases this year. The major was trading 0.1 percent up at 113.18, having hit a high of 113.29 the day before, its highest since Dec. 28. FxWirePro's Hourly Yen Strength Index stood at -61.80 (Bearish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. consumer credit and FOMC member Bostic’s speech for further momentum. Immediate resistance is located at 113.33 (Nov. 16), a break above targets 113.63 (Dec. 21). On the downside, support is seen at 112.93 (21-DMA), a break below could take it near 112.17.
GBP/USD: Sterling steadied as traders were keen to see new developments on Brexit negotiations before taking new positions on the British currency. The major traded flat at 1.3561, having hit a high of 1.3612 on Wednesday; it’s highest since Sept. 20. FxWirePro's Hourly Sterling Strength Index stood at 31.97 (Neutral) by 0400 GMT. Investors’ focus will remain the Halifax House Price, ahead of U.S. fundamental drivers. Immediate resistance is located at 1.3580, a break above could take it near 1.3620. On the downside, support is seen at 1.3600, a break below targets 1.3660. Against the euro, the pound was trading 0.1 percent down at 88.68 pence, having hit a high of 88.48 pence on Wednesday, it’s highest since Dec. 22.
AUD/USD: The Australian dollar eased after a survey predicted the Australian dollar would be at $0.7700 in one, three, six and 12 months, an unusually flat glide path for the traditionally volatile currency. The Aussie trades 0.2 percent down at 0.7843, having hit a high of 0.7874 on Friday; it’s highest since Oct. 20. FxWirePro's Hourly Aussie Strength Index stood at 35.06 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7814 (Jan 4 Low), a break below targets 0.7765 (Dec. 28 Low). On the upside, resistance is located at 0.7880, a break above could take it near 0.7940.
NZD/USD: The New Zealand dollar hovered below a three-month peak as the sentiment around the greenback remains broadly undermined in response to subdued U.S. wage growth data. The Kiwi trades 0.1 percent up at 0.7174, having touched a high of 0.7186, its highest level since Oct. 17. FxWirePro's Hourly Kiwi Strength Index was at 24.62 (Neutral) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7196, a break above could take it near 0.7230. On the downside, support is seen at 0.7124 (5-DMA), a break below could drag it lower 0.7091 (10-DMA).
Equities Recap
Asian shares nudged closer toward all-time peaks after Wall Street recorded its best start to a year in over a decade, while the greenback steadied after NFP data showed the average earnings were as expected at 2.5 percent y/y and the unemployment rate steady at 4.1 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 percent.
Australia's S&P/ASX 200 index advanced 0.1 percent to 6,130.40 points and South Korea's KOSPI rallied 0.3 percent to 2,505.99 points.
Shanghai composite index rose 0.4 percent to 3,405.90 points, while CSI300 index was trading 0.5 percent up at 4,157.24 points.
Hong Kong’s Hang Seng was trading 0.2 percent lower at 30,766.00 points. Taiwan shares added 0.3 percent to 10,905.95 points.
Commodities Recap
Crude oil prices steadied just below near three-year highs reached last week on the back of a slight decline in the number of U.S. rigs drilling for new production. International benchmark Brent crude was trading 0.1 percent up at $67.79 per barrel by 0410 GMT, having hit a high of $68.25 on Thursday, its highest since May 2015. U.S. West Texas Intermediate was trading 0.1 percent higher at $61.61 a barrel, after rising as high as $62.18 on Thursday, its highest since May 2015.
Gold prices consolidated within narrow ranges, below a 3-1/2-month peak hit last week, amid expectations of further U.S. interest rate hikes to come this year. Spot gold was mostly unchanged at $1,319.85 an ounce at 0414 GMT, having touched its highest since Sept. 15 at $1,325.79 on Thursday. U.S. gold futures were also mostly unchanged on Monday at $1,321.50 an ounce.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.476 percent higher by 0.001 bps, while 5-year yield was 0.002 bps up at 2.286 percent.
The Australian government bonds traded narrowly mixed as investors remain sidelined in any major trading activity amid a silent session that witnessed no data of major economic significance. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 2.624 percent, the yield on the long-term 30-year note also climbed 1/2 basis point to 3.324 percent and the yield on short-term 2-year fell 1/2 basis point to 1.987 percent.
The New Zealand government bonds ended the first trading day of the week on a mixed note as investors remained sidelined in any major trading activity amid a muted week that is scheduled to witness data of minor economic significance. At the time of closing, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 4-1/2 basis points to 2.83 percent, the yield on 20-year slipped 1-1/2 basis points to 3.27 percent and the yield on short-term 2-year ended 1 basis point lower at 1.97 percent.
