Global markets experienced a quiet day on the whole yesterday as investors continue to watch and wait for the next big market catalyst. Stock indices had a mixed day across the globe with no real outstanding moves and the dollar dropped against most of the majors whilst still remaining well within recent ranges. Even sterling managed a relatively tight range with no major new updates for Brexit. Oil jumped higher again as fighting increased in Libya, WTI now at $64.4/b and Brent up to $71/b, this move pushed Petro-currencies higher across the board.
The current quiet trading conditions are unlikely to last with plenty of risk events due out this week. US banks reporting season is about to open again and the annual spring meetings of the world bank and IMF are taking place in Washington DC. Probably more impactful for the greater market will be any developments on the trade deal or any major steps forward for Brexit. On the economic calendar though are two key central bank events, the first being the latest ECB rate announcement and communications on Wednesday and with Euro sitting near yearly lows anything more dovish from them could see the single currency tumble, a big focus will be on TLTRO. Also due out later in the week are the FOMC’s Meeting Minutes which may give even further insight into the Fed’s current thinking and how they are looking to move forward into the rest of the year.
The calendar is relatively quiet again today across the trading sessions, Home Loans numbers out of Australia will prove a short term focus for traders in the Asian session but there is little else scheduled to trouble the scorers. There’s no tier 1 releases due for release in the London time zone either and expect Brexit to continue to dominate investor focus both in London and across the channel. We have the US Jolts Job openings due early in the New York session and then FOMC members Quarles and Clarida speaking towards the end of the day.