Headlines:
- USDJPY Technical Analysis – The market looks fine with the current pricing
- Gold bulls ready to rumble again?
- EUR/USD continues to hold the line, draws in key near-term level
- Weekly update on interest rate expectations
- BOJ governor Ueda says will not comment on short-term FX moves
- BOJ governor Ueda says no huge build up of yen carry positions compared to July
- ECB's de Guindos: The balance of risks has shifted from inflation concern to growth
- ECB's Makhlouf: I don't think the job is done on taming inflation
- ECB's Makhlouf: The evidence would need to be overwhelming for 50 bps move in December
- RBA's Kent: Forward guidance might be less useful here than compared to the US
- SNB total sight deposits w.e. 18 November CHF 463.4 bn vs CHF 463.5 bn prior
- Eurozone September trade balance €12.5 billion vs €4.6 billion prior
Markets:
- JPY lags on the day
- European equities slightly lower; S&P 500 futures flat
- US 10-year yields up 3.2 bps to 4.473%
- Gold up 1.1% to $2,591.13
- WTI crude up 0.5% to $67.33
- Bitcoin up 0.5% to $90,295
It was a quiet session with few headlines and meaningful data to get markets excited to start the new week.
As such, the focus is whether or not we will see the post-election momentum keep up this week. And for now, the dollar is largely keeping steadier.
USD/JPY is the notable mover on the session, rising from 154.50 to just above 155.00 currently. The pair remains very closely tied to the bond market and is underpinned by higher yields for now at least.
Besides that, there wasn't too much else during the session apart from some light extensions to the narrower ranges. EUR/USD moved up to 1.0571 to test its 100-hour moving average but is now flat again at around 1.0538. Meanwhile, GBP/USD, USD/CHF, and USD/CAD are all sitting flat on the day with little movement in general.
The antipodeans are slightly lower amid continued pressure on the Chinese yuan. AUD/USD is down 0.2% to 0.6450 and NZD/USD down 0.4% to 0.5840 currently.
Besides that, equities aren't offering much to work with with S&P 500 futures just marginally higher. European indices were up just a touch at the open but are now down slightly in a mixed session. All eyes will be on Nvidia's earnings on Wednesday to carry risk sentiment this week.
Elsewhere, gold is catching a modest bounce to near $2,600 after a test of its 100-day moving average last week. Meanwhile, Bitcoin is looking to try and keep another push above $90,000 after a more sluggish showing last week above the figure level.
