Spreadex Market Update
USD Begins Pre-FOMC Week Lower
Equities Bouncing Back on Monday
Equities markets seeing a more positive, albeit tentative, open on Monday. Weakness in the US Dollar is helping underpin stock prices with most indices seen trading in the green early on Monday. A quiet data sheet today and no large-cap US names reporting means that flows are likely to remain tied to USD action. Japanese stocks continue to bounce back well following the BOJ’s decision last week to hold policy unchanged with the Nikkei sitting around 5.5% up off the 2023 lows at time of writing.
EUR Rally Continues on ECB Comments
EUR kicks off the week as the strongest performing currency. Hawkish ECB commentary into the end of last week has resharpened the market’s ECB expectations with Lagarde warning that inflation is still way too high, and the bank intends to keep going with rates until CPI is back at its 2% target. Risk currencies are also bouncing back today with AUD and NZD creeping higher again.
Safe-Havens Under Pressure
Safe-havens have seen the softest start today. Both JPY and USD are under pressure. JPY is still reeling from the January BOJ meeting last week which, despite plenty of chatter and speculation, saw the BOJ sticking with its ultra-loose monetary policy.
Metals & Oil Muted on Monday
In the metals and commodities space, gold and silver have both started the week under selling interest, despite a softer start for the Dollar. Price action in silver has been particularly choppy recently with silver futures continuing to hold in a block of consolidation ahead of the 24.50000 level. Crude oil is seeing a more muted start to the week. Crude futures are softening a little early on Monday with price sitting below last week’s highs for now as recessionary fears curtail upside despite a weaker US Dollar.
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