It's a slow start to the day once again, as traders are still getting past the US long weekend hangover. The bond market is not offering much hints and that is not helping with the mood in major currencies for now. We might have to wait on Wall Street later for some guidance on the flows this week. The FX board is showing rather minimal changes for the most part thus far:
The big news in Asia comes from China, as the PBOC moved to cut its 5-year LPR here. The 25 bps reduction is the largest ever but I would argue that it is too little, too late for China. They needed bigger and bolder steps way sooner and so far, domestic stocks are also sympathetic to that view.
Coming up in Europe, there will be a lack of major economic releases again today. There are some light data points to move things along but that's about it. We might be in for another more sideways session, all else being equal.
0700 GMT - Switzerland January trade balance data
0900 GMT - Eurozone December current account balance
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
