Forex today is seeing an improved risk sentiment on the first trading day of the week, with the Asian markets having bounced higher amid increased expectations of the US-China trade talks. The safe-haven yen rose even after China’s aggressive monetary easing improved investor sentiment, while the U.S. dollar slipped ahead of Wednesday’s minutes of the Federal Reserve’s December meeting and a speech by Fed Chairman Jerome Powell a day later. Both the euro and the pound remained on the front foot amid a broadly weaker greenback.
Monday’s EUR calendar kicks-off with critical Germany’s factory orders and retail sales data that will drop in at 07:00 GMT. Later, at 09:30 GMT, markets will watch out for the Eurozone Sentix investors’ confidence numbers. Soon after, the Eurozone retail sales report will be published at 10:00 GMT, offering some fresh impetus to the euro. Little economic data for the pound today, with Brexit headlines moving the GBP.
In the NA session, the US ISM non-manufacturing PMI and factory orders data will be reported at 15:00 GMT. The FOMC member Bostic’s speech at 17:40 GMT will be also closely eyed after Friday’s dovish remarks from the Fed Chair Powell that knocked-off the US dollar across the board.
Oil prices jumped by more than 1 percent on Monday, pushed up by optimism that talks in Beijing can resolve a trade war between the United States and China, while supply cuts by major producers also supported crude. U.S and Beijing have been locked in an escalating trade spat since early 2018, raising import tariffs on each other’s goods. The dispute has weighed on economic growth.
Gold advanced early in Asia, as the precious metal traded firmer above 1290 level amid mixed treasury yields. Dollar has slipped ahead of Wednesday’s minutes of the Federal Reserve’s December meeting and a speech by Fed’s Powell a day later, however an improved risk appetite limited the gains for the safe-haven metal. Jerome Powell’s views on Friday about the future of interest rate hikes were a bullish factor for gold as Powell pledged that the central bank would be watching how the economy performs this year and will adjust policy accordingly.