The markets finished the week well on Friday with the US equity markets finishing the day higher for the first time in a week and the dollar also back on the front foot in line with the UST 10yrs which also posted higher. These moves in the US markets were helped along by a much stronger Industrial Production print (1.1% against expected 0.3%) and a higher University of Michigan Consumer Sentiment result (102 against 99.2).
In the currencies, the dollar came nicely back on the bid side with the commodity currencies taking a large hit, the AudUsd is down over 200 pips from last week’s high, trading just north of 0.7700 as we move into the start of the week. Cad is also on the back foot, with UsdCad up near 1.3100 despite Oil rallying well on Friday.
Looking ahead to today’s trading and it’s very quiet on the fundamental data front, although with the G20 meeting taking place in Buenos Aires over the next couple of days traders will be watching the news wires closely. Today looks very much to be the calm before the storm this week with some big central bank meetings due to take place, not least the first Fed Meeting with Jay Powell in charge and plenty of market debate about the message we will get from it. We’ve also got the Bank of England and RBNZ meetings ahead this week as well as several key tier 1 data releases.