Headlines:
- Bitcoin up 6% to $67,000 as the rebound intensifies
- Dollar eases, Powell and central banks in focus
- US futures drive higher ahead of Powell, ADP employment data later in the day
- UK finance minister Hunt delivers pre-election budget
- BOJ policymakers to say end of negative rates as "reasonable" in upcoming policy meeting
- Eurozone January retail sales +0.1% vs +0.1% m/m expected
- Germany January trade balance €27.5 billion vs €21.5 billion expected
- Nikki Haley reportedly set to pull out of Republican presidential race
- Germany's IfW Kiel economic institute slashes 2024 GDP forecast
- Germany's Ifo institute also cuts 2024 GDP forecast
Markets:
- JPY leads, CHF lags on the day
- European equities higher; S&P 500 futures up 0.4%
- US 10-year yields up 0.8 bps to 4.144%
- Gold up 0.3% to $2,134.31
- WTI crude up 0.8% to $78.81
- Bitcoin up 4.4% to $66,150
It was mostly another quiet session for major currencies as the likes of Bitcoin and gold continue to hog the spotlight this week.
The former was an early mover as the rebound off the $60,000 mark overnight intensified ahead of European trading. Bitcoin rose all the way up to $67,645 before moderating around the $66,000 level during the session.
Meanwhile, stocks also perked up as tech shares are once again driving the upside momentum. US futures were flattish early on but S&P 500 futures are now up 0.4% with Nasdaq futures up 0.8% as risk lights up. The bond market was more tepid, so that isn't leaving much to work with for the dollar in general.
In FX, a report saying that the BOJ might offer up a hint to the end of negative rates in March was enough to see the Japanese yen nudge higher. USD/JPY fell from 149.75 to 149.30 before keeping around 149.50-60 levels now as it gets stuck back into its technical box here.
Besides that, the dollar is slightly lower with EUR/USD up 0.1% to 1.0867 with large option expiries holding price action intact. AUD/USD is seen up 0.3% to 0.6520 but holding within the confines of last week.
Looking at the other key mover since last week, gold is a bit quieter today but is maintaining a slight advance to near $2,134. The bids in the last few days tend to come in US trading, so let's see if that will again be the case today.
Coming up, we have the ADP employment data, Fed chair Powell's testimony, and the Bank of Canada policy decision to keep things interesting for the remainder of the day.
