No key data points? No problem!
Forex pairs and major asset classes are still posting very good moves, even though UK and US traders are on holiday.
Read on to find out how the markets are performing.
Titles:
- Bank of Japan Governor Ueda: The central bank will proceed cautiously with inflation targeting, as Japan has made “progress in moving away from zero and raising inflation expectations.”
- German Ifo Business Climate Index for May: 89.3 (90.4 expected, 89.3 previously)
- NBB Belgium Business Climate Index for May: -11.0 (-10.8 expected, -11.9 previous)
- ECB member Olli Rehn: 'It's time in June' to cut interest rates as inflation falls to 2% target 'in a sustainable way'
- ECB member Philip Lane: “The subsequent pace of interest rate cuts” will depend on the strength of underlying inflation
- British banks closed their doors to celebrate Spring Day
- US markets take off on Memorial Day weekend
Broad market price movement:
Dollar Index, Gold, S&P 500, Oil, 10-Year US Yields, Bitcoin Overlay Chart by TradingView
Commodities are off to a rolling start, with gold and crude oil starting the week on a positive note and continuing higher for the rest of the day.
The price of West Texas Intermediate crude oil rose more than 1% on Monday, supported by geopolitical tensions after news of the killing of an Egyptian soldier in a shootout with the Israeli army in Rafah.
Bitcoin flipped and turned early in the day before seeing a late risk-on rally that also lifted the S&P 500 while sending the safe-haven dollar lower.
Forex market behavior: US dollar against major currencies
Overlay of the US dollar against major currencies Chart by TradingView
Liquidity in the Forex market was lower than usual, as the UK and US markets were closed for holiday. There wasn't much to work on in the economic calendar either, except for a speech by Bank of Japan Governor Ueda and a couple of business sentiment surveys from the Eurozone.
The dollar began to move sideways against its counterparts before falling and continuing the sell-off seen last Friday. It caused its biggest losses against commodity currencies while putting up a good fight against fellow lower-yielding currencies, the yen and the franc.
ECB officials Lane and Rehn also had some dovish statements in their testimony, leading to a bit of a euro sell-off before the common currency joined the rest of the forex gang in rising against the US dollar.
Potential catalysts coming on the economic calendar:
- Australian retail sales at 1:30am GMT
- SNB President Jordan's speech at 4:55 AM GMT
- Bank of Japan core CPI at 5:00 AM GMT
- US S&P/CS Composite Index -20 HPI at 1:00 PM GMT
- US Federal Reserve Consumer Confidence at 2:00 PM GMT
Today's schedule includes more events, starting with the release of Australian retail sales and the Bank of Japan's core CPI.
The biggest market mover may come later, as the US economy will print the May CB Consumer Confidence Index and may have some clues about spending activity moving forward.
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