Monday was a relatively quiet day with with the day’s economic docket scant of high impact data. The US was on holiday for Presidents’ Day as well, making volumes even thinner. This morning overall sentiment in Asia was positive with the major Asian equity indices trading mostly higher albeit in a limited dose.
Euro remained on the defensive throughout Monday’s session, managing to hold off further sell offs. Selling was the result of the political scenario in France and as we approach the first round of Presidential elections on the 23rd April. Marine Le Pen, who vowed to pull France out of the euro zone, managed to tighten gaps with her oponents and this left its mark on the single currency.
This morning a Dollar recovery has also reflected itself on the EURUSD, that is gradually heading south as we speak. EURUSD is now at 1.0580 after today’s open of 1.0609. The US Dollar index measuring the strength of the USD against a basket of other currencies, has resumed 101 levels this morning after yesterday’s flat range.
On Wednesday the minutes from the Fed’s last policy meeting are likely to be the USD’s next event to watch.
On today’s economic docket we have EZ Manufacturing and Services PMIs for February scheduled for the morning, UK also will publish its latest Public Sector Net Borrowing Requirement for January but the highlight will likely go to BoE governor Carney’s speech in UK parliament. We also have US PMIs later this afternoon.
