Here’s what you need to know on Monday, February 13th.
Markets remain risk-averse early on Monday as investors keep an eye on geopolitics while refraining from taking big positions ahead of this week’s major events. Risk perception should continue to drive market action for the rest of the day if no upper tier data is released.
On Friday, data released by the University of Michigan showed that the year-ahead inflation expectations component of the Consumer Confidence Survey rose to 4.2% in early February from 3.9% in February. The data helped the US dollar maintain its strength against rivals late Friday, with the US Dollar Index (DXY) closing in positive territory for the second straight week. European morning, DXY clings to a slight daily gain near his 103.70, while benchmarking his 10-year US Treasury yield stabilizes above his 3.7%. Reflecting the cautious mood, US stock index futures fell between 0.25% and 0.35%.
Meanwhile, U.S. forces have reportedly shot down the third unidentified object since a Chinese balloon flying over Michigan on Sunday.
EUR/USD It lost over 100 pips last week and remains in the consolidation phase below 1.0700 on Monday. On Tuesday, Eurostat releases fourth-quarter employment change and gross domestic product data.
Following last week’s sharp decline, GBP/USD Start the week by moving sideways around 1.2050.
AUD/USD Stable slightly above 0.6900. National Australia Bank’s Business Confidence data will be the new stimulus to watch alongside the Westpac Consumer Confidence Index in the early hours of Tuesday’s Asia session.
Despite broad US dollar strength, USD/CAD More than 100 pips down on Friday. According to monthly data released by Statistics Canada, net employment figures for January rose by 150,000, up market expectations by 15,000, boosting the Canadian dollar.
Following Friday’s erratic behavior, USD/JPY It picked up some bullish momentum early on Monday, last trading around 132.20, up more than 0.5% daily. Reuters reported on Monday that Japan’s Upper House is scheduled to hold confirmation hearings on the government’s candidates for the new governor and two deputy governors of the Bank of Japan (BoJ) on February 27.
pressured by rising U.S. Treasury yields, Money Prices stayed on the backwards heading into the weekend and failed to make a rebound. Early in the morning in Europe, XAU/USD trades in a narrow range just above $1,860.
Bitcoin After a relatively quiet weekend, it slipped into negative territory for the second week in a row, down about 5%. BTC/USD trades up and down in a narrow channel below $22,000 at the beginning of Monday. ethereum It remains in the consolidation phase and is trading around $1,500.