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Market Movers: Calm before the ‘central bank’ storm – TDS
FXStreet (Barcelona) - Prashant Newnaha, Strategist at TD Securities, summarizes the market performance during the Asian trade, noting that USD is slightly stronger against the Eurocentric currencies, while trading slightly soft against the commodity FX, with markets await the plethora of central bank decision in this week.
Key Quotes
“Talk of friction between Euro Ministers and the Greek Minister over the weekend did not impact our quiet session, nor were there no market moving regional data releases. However, this is the calm before the storm given the plethora of central bank decisions and speeches this week.”
“The DXY closed below the 50dma for the first time since July last year on weaker durables ex transports goods numbers and is close to unchanged in Asia. Eurocentric currencies are weaker (NOK, SEK, DKK, EUR) down between 0.15-0.20% vs the USD, offset by a firmer CAD (+0.1%) and NZD (+0.2%) vs the USD.”
“US 10yr yields are close to 1bp lower in Asia at 1.90%, after falling 4.5bps on Friday night, helping to drive ACGB yields down 3 bps across the curve today.”
“US equity indices hit new record highs on Friday, supporting regional indices today. The SHCOMP is +1.9% at 7yr highs on speculation the government is considering merging State owned enterprises to support growth, Nikkei is unchanged, the ASX is +0.7%, led by gains in mining stocks, with India and South Korea down between 0.1-0.2%.”
“The commodity patch is firmer today– copper and gold are up +0.25%, Brent crude futures are off 0.3%, but iron ore continues its recovery, advancing 3.5%.”
“Tomorrow the RBA Governor is scheduled to speak at an investment summit, then mid-week the event calendar beefs up with European officials set to convene again to speed up Greek debt negotiations, to be closely followed by a slew of CB meetings—Fed, RBNZ, BoJ, Riksbank, BCB, CBR & Banxico over Wed-Thurs.”