A quiet Asian affair this Monday, despite full markets having returned, as a lack of fresh first-tier economic releases left most majors in a tight trading range. Moderate risk-on sentiment prevailed, as markets showed a limited reaction to the weekend’s reports of N. Korea denuclearization, airstrikes in Styria and ongoing China-US trade spat.
Amongst the Asia-pac currencies, the Kiwi was the top gainer, closing out NZD shorts ahead of the key China data and FOMC minutes due this week. Meanwhile, the Aussie also held on to mild gains and neared the 0.7700 mark amid higher oil and copper prices while a broadly sidelined US dollar underpinned. The Yen lost ground to its American counterpart as the risk sentiment improved, with the Nikkei 225 index extended gains to regain the 21,700 levels.
Main topics in Asia
US Fed's Kashkari: the Fed is watching US-China stand-off closely - Bloomberg
Bloomberg is out with notes on Minneapolis Fed President Neel Kashkari who spoke with Fox News over the weekend regarding the ongoing tariff spat between China and the US.
China to ban key exports to North Korea - Reuters
Reuters is out with headlines explaining that China is banning the export of strategic items into North Korea, with a focus on weapons of mass destruction.
The Eurozone is already slipping back into recession - UK Telegraph
The UK Telegraph's Matthew Flynn is out with an op-ed piece about the state of the Eurozone's current trajectory in light of recent economic indicators.
No principle NAFTA deal - Reuters
Two Reuters’ sources have stated that there will not be a principle NAFTA deal on the books in time for the Americas Summit event later this week.
Possible air strikes underway in Syria as UN Security Council prepares to meet
Various outlets are reporting on unconfirmed air strikes taking place within Syria, possibly targeting the Syrian Air Force.
US firms urged to reject tariff plan - The Standard
China's state media has urged industrial and commercial sectors in the United States to rally against President Donald Trump's tariff plan.
PBOC’s Fan: Current trade spat with the US is an obstacle to China's rise
Following comments are delivered by the PBOC adviser Fan Gang while speaking at the Boao Forum in China on Monday.
Key Focus ahead
Heading into the European calendar on the first trading of this week, with little in store, in terms of the economic releases, except for the second-liner German trade balance, UK Halifax HPI and Sentix Investor Confidence data. The risk trends will be the main driver for the core pairs in the session ahead.
The US docket remains absolutely data dry while the Canadian housing starts and the Bank of Canada (BOC) business outlook survey will keep the NA traders busy.
EUR/USD: bull hammer ahead of key event risks this week
With a focus back to data, the German Retail Sales poor outcome and IP miss were not helpful in the case of the bulls and eyes will now turn to German Feb trade balance and EZ April Sentix index early this week.
The week ahead: Eyes on Boao Forum in China - Rabobank
Analysts at Rabobank offered their outlook for the week ahead.
China's Xi Jinping speech to be focus during Boao Forum
China's President, Xi Jinping, will be headlining the Boao Forum on Tuesday, the Asiatics' version of Davos, and special attention is expected to be given to Xi's words as tensions continue to ramp up between the US and China.
Soft NFP and trade tensions underpin gold ahead of CPI next week
Aside from the publication of CPI and ongoing trade tensions, the only other fundamental event that one needs to keep an eye on is the release of the FOMC’s meeting minutes, also on Wednesday. The rest of next week’s economic data are not too important.
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