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Trading was cautious on Monday as traders await key data from major economies. The dollar started the week on a positive note despite a fall in PCE prices last Friday. The Euro area saw higher inflation data in Spain ahead of the ECB decision. Rate hike decisions from the ECB, BoE and Fed are highly anticipated.
EURJPY gained +0.45% as the Euro got boosted by upbeat Spanish data. The consumer price index in Spain soared to 5.8% from the 4.9% survey on a year-over-year basis. Stronger gains on the day may be limited by disappointing GDP data from Germany at 0.5% vs 0.8% [YoY] and -0.2% vs 0.0% [QoQ] Q4. The Yen continues to be undermined by dovish comments from the BoJ Governor Haruhiko Kuroda on maintaining their loose policy. Currently, the pair is capped by 142.00 immediate resistance after printing an intraday low at 140.56. Further up, 142.50 may be a challenge for bulls before reclaiming 143.00.
NZDUSD traded +0.16% higher as the dollar steadies ahead of key data from the US. On Sunday Statistics New Zealand showed that the trade balance in the country rose to -475 million in December from an expected -1.750 million month-over-month. There is not much data from the US today as traders await the Fed meeting on Wednesday. The kiwi is struggling to trade above 0.6500 and may face another resistance at 0.6580 if the current resistance fails to hold.
GBPAUD was up +0.36% as the BoE decision looms. On Thursday, the BoE will be meeting and expectations have settled at a 50bps hike by the central bank. The cautious mood on the day acted as a headwind against the risk-sensitive AUD. The pair rose to trim down a 6-day losing streak. A continuation to the downside may give bears 1.7250 while bulls may reclaim the 1.7600 psychological resistance.
European stocks edged lower as the EUR gained ahead of the ECB meeting. As of writing, the UK100 fell -0.11%, between 7710 low and 7765 high. Bulls may strengthen above 7800 high and bears may reclaim 7650. The CAC40 was down -0.91% falling from 7100 psychological resistance. Further down, sellers may be challenged by 6950 before reclaiming 6800. The DAX fell -1.09% sliding towards a 14900 low and capped by a 151580 high on the day.
US stock futures lowered following in the footsteps of European shares. The US100 futures tanked by -1.46% after a failure to breach above 12200 resistance. Targets on the downside may be seen at 11750 and 11500. US500 futures were down -1.00% capped by a 4070 intraday high and a few steps away from 4000. US30 futures slumped by -0.74% with targets seen at 33250 and 32750.
Additionally, crude oil prices traded steadily as markets await clarity on China’s demand ahead of the OPEC+ meeting and central banks’ decisions. UK oil gained +0.52% trading above $86.00 with a low residing at $85.50 on the day. US oil was up +0.38% trading between $78.80 and $80.50.
