To start the week Asian equities are broadly higher as the risk on sentiment settles in further. The US-China phase 1 trade deal is now 99% there. In other words, everything seems virtually done, apart from the signature.
The USD/JPY pair inched up at 108.35 as markets await Bank of Japan’s monetary policy meeting minutes due on Wednesday. The EUR/USD pair last traded at 1.1153, as traders await new ECB head Christine Lagarde’s first official speech later in the day. The GBP/USD pair was also near flat. The Bank of England’s newly renamed Monetary Policy Report is out on Thursday.
The calendar ahead for the European session is filled with some manufacturing PMI’s. Data releases ahead as follow (all times in GMT):
- 08:50: France Manufacturing PMI
- 08:55: Germany Manufacturing PMI
- 09:00: Eurozone manufacturing PMI
- 09:30: UK construction PMI
Next of relevance is the US Factory Orders data due on the cards at 15:00 GMT among other minority reports.
The focus remains on the European Central Bank President Lagarde’s debut speech, due at 18:30 GMT, for fresh hints on the bloc’s monetary policy. Meanwhile, traders will keep a close eye on the Brexit and trade-related headlines as well.
Oil prices eased on Monday as traders took profit ahead of fresh European and U.S. economic data, despite hopes for some resolution to the U.S.-China trade row that has hurt global economic growth and crimped energy demand.
Gold prices on the other hand, inched higher on Monday as traders digested the latest trade news happened over the weekend.