Economic data coming up in the European session

Little of note on the agenda today

USD

Just be mindful that it is a sort of long weekend for the market with US being on holiday, so that might affect trading conditions in the sessions ahead.

The Chinese holiday is also seeing some impact with the offshore yuan keeping firmer and that might prompt the PBOC to step in later in the week; though if anything else, it does tell us about the trend in which the currency is headed towards.

Equities are higher after a solid close by Wall Street on Friday, with higher yields not really spooking investors. The reflation theme will once again be a key consideration this week with 10-year yields moving above 1.20% and 30-year yields above 2.00%.

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Meanwhile, the dollar slumped despite the nudge higher in yields at the end of last week and is continuing to fall as we get things going today as well.

GBP/USD is staying on the hunt towards 1.4000 as it kept a break of key trendline resistance of 1.3743 in trading last week, while EUR/USD is looking towards testing last week’s highs around 1.2144-49 once again ahead of European morning trade.

Elsewhere, oil is one of the better performers with WTI crude up over 2% and hitting above $60 with Middle East tensions cited among other reasons.

We are continuing much of the same themes from early last week with some progress being observed at the very least. So, let’s see if the market has the appetite to keep at that with US traders only set to return tomorrow.

0900 GMT – SNB total sight deposits w.e. 12 February

Your weekly check of the deposits kept at the SNB by Swiss banks. This data is a proxy for FX interventions.

1000 GMT – Eurozone December trade balance data

Prior release can be found here. Trade conditions are still improving towards pre-virus levels and that should still be the trend as we look towards this year in general.

1000 GMT – Eurozone December industrial production data

Prior release can be found here. Factory output is estimated to ease a little towards the end of last year but the data here is very much a lagging one as we already got the more crucial Q4 GDP report two weeks back.

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.