Major events for the day (Asian - London - NY - Asian)
Current Sentiment
Upcoming Risk Events
Our Game Plans for next Sessions (London to NY)
-There was no tier one data during the Asian session and the market is trading in the sideway. As today is the 2nd day of article 50, we expect any further comments from UK or EU officials that could provide us with some trading opportunity. We don’t really have a clear direction for GBP so will stay out until further notice.
We still like USD as the strength of recovery is very clear now, today we will have Final GDP & unemployment claims which both are expected to be positive.
Market was quiet resilient yesterday ahead of Article 50, therefore, we think the risk on sentiment is clear and we will still like to sell safe heaven currencies.
The oil recovered yesterday due to smaller than expected built, but overall because BOC is still dovish, we’re not interested to buy CAD. Instead, we’re interested to buy AUD/JPY.
We’re also interested to buy AUD/NZD as this will be a safer trade providing we hedge out of the risk sentiment.
Major events for the day (Asian - London - NY - Asian)
- Article 50 was finally triggered
- U.S Pending Home Sales m/m 5.5% vs 2.3% expected, -2.8% previous
- Crude Oil Inventories 0.9m vs 1.2m expected, 5m previous
- Fed Williams: Much of dollar rise due to relative strength of U.S economy
- Fed Williams: More than 3 hikes in 2017 possible given upside risks
- Fed Rosengren: Now is the time to think about how to normalize more quickly
- Fed Rosengren: 4 rate hikes this year would be appropriate.
- UK PM May: We may be prepared to pay into some EU programs
- EU Verhofstadt: We cannot accept that the UK would start bilateral trade talk before leaving the EU
- ECB: Policy makers wary of making fresh policy.
Current Sentiment
- The Asian equities closed lower in red
- Dollar strength is still seen cross the board.
- GBP recouped some losses
Upcoming Risk Events
- Spanish Flash CPI y/y
- German Prelim CPI m/m
- U.S Final GDP q/q
- U.S Unemployment Claims
- Fed Kaplan Speaks
- JPY Household Spending y/y
- JPY National Core CPI y/y
- JPY Tokyo Core CPI y/y
- NZD ANZ Business Confidence
- CNY Manufacturing PMI
- CNY Non-Manufacturing PMI
Our Game Plans for next Sessions (London to NY)
-There was no tier one data during the Asian session and the market is trading in the sideway. As today is the 2nd day of article 50, we expect any further comments from UK or EU officials that could provide us with some trading opportunity. We don’t really have a clear direction for GBP so will stay out until further notice.
We still like USD as the strength of recovery is very clear now, today we will have Final GDP & unemployment claims which both are expected to be positive.
Market was quiet resilient yesterday ahead of Article 50, therefore, we think the risk on sentiment is clear and we will still like to sell safe heaven currencies.
The oil recovered yesterday due to smaller than expected built, but overall because BOC is still dovish, we’re not interested to buy CAD. Instead, we’re interested to buy AUD/JPY.
We’re also interested to buy AUD/NZD as this will be a safer trade providing we hedge out of the risk sentiment.