USD holds at highs (USDIndex 104.85), Stocks closed higher in Europe and hold gains in Asia with US FUTS higher too. Yields are flat but off recent lows. Asian markets buoyed by positive Yellen-Liu He meeting, prospect of Chinese & Australian Fin. Min. meeting this week and better PMI data from Japan & China, all despite action from the RBA. Covid concerns continue to weigh (Hang Seng +0.07%, Nikkei +1.04%) Oil ticks to $110, Gold holds over $1800 & BTC regains $20k. JPY underperforms in Asian. RBA raises rates in line with expectations by 50bp to 1.35%.
- USDIndex tested 105.00 Monday before slipping back to 104.85 now.
- Equities – USA500 closed +39 (3825), Friday US500FUTS higher at 3854 now.
- Yields 10-year yield lower, closed down Friday at 2.889% , trades at 2.880% now.
- Oil & Gold had mixed sessions – USOil rallied to $110.40 earlier from $108.00 Monday. Gold holds between resistance at $1815 and support at $1800, trading at $1808 now.
- Bitcoin continues to trade around $20K, testing $20.3K today.
- FX Markets – EURUSD remains pressured at 1.0430, USDJPY rallied to 136.30 earlier from under 135.00 Monday. Cable trades at 1.2110 now.
Overnight – China Services PMI’s better at 54.3 vs 47.3, Japanese Service PMI also improve at 54.0 vs 52 last time.
Today – EZ/UK Services and Composite Final PMIs, US Factory Orders, BoE Mins. & FSR, Speeches from BoE’s Bailey & Tenreyro.
Biggest FX Mover @ (06:30 GMT) EURJPY (+0.54%). JPY weaker today. Rallied from under 140.00 Thursday to 142.20 now, next resistance, 142.75 & 143.00. MAs aligning higher, MACD histogram positive & rising, RSI 66.00 & rising, H1 ATR 0.212, Daily ATR 1.402.
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Stuart Cowell
Head Market Analyst
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