As expected, the markets were very quiet during yesterday’s trading sessions as holidays in both China and the United States saw limited moves across the currencies. The dollar did manage to make a bit of further head way in line with Friday’s recovery but that petered off later in the day. The Dxy starting today’s Asian trading session around 89.20 with the UsdJpy probably the most consistent mover on the day grinding higher through the cloud from 106.15 to a high of 106.73.
Looking ahead to today’s trading and we look set to see continued muted markets, certainly for the start of the day, with little in the way of economic data being released in the Asian session. We do have the latest RBA’s Monetary Policy Meeting Minutes this morning but it’s almost unanimous across the market that we will not see anything new from the minutes and they will reiterate the upbeat growth message along with the ‘we’re in no hurry to normalise’ rhetoric.
Into the London session and we do have the German ZEW Economic sentiment due which could add some volatility to the single currency and then later in the day we have Canadian Wholesale Sales data followed by the GDT Price Index numbers.
So it will be back to monitoring the equity markets for the start of fresh moves for most traders and although we’ve moved back away from ranges extremes in the currencies you do tend to get the feeling that we’re just one tweet or piece of news away from seeing volatility come back with a vengeance!