Investors look to the release of big tech earnings report this week along with the Bank of Japan policy meeting on Friday. Market participants prepare for central bank meetings as inflation remains resilient. There is low impact data in the New York session ahead of Central bank speeches early Tuesday morning.
AUDUSD seesawed around the 0.6680-0.67000 area trading at -0.08% ahead of the US important this week. Inflation data from Australia will be due on Wednesday as economists expect the consumer price index to cool off in the first quarter. CPI quarter-on-quarter is surveyed to drop to 1.3% from 1.9% while headline inflation is anticipated to settle at 6.9% from 7.8%. On Tuesday traders will be looking forward to the release of housing data from the US. On the upside, buyers may be challenged by 0.6700 whereas bears may need to breach 0.6650 and 0.6620 for strong selling.
EURGBP gained +0.21% amid a risk-on day. The euro soared despite the lower-than-anticipated Ifo business climate index in Germany which came in at 93.6 vs 94.0 in April. The sterling continued its weakness from Friday`s downbeat retail sales which showed a squeeze in consumer spending amid soaring inflation. Further upside towards 0.8900 may be limited by a 7-week high at 0.8870. However, downside traction to 0.8800 may be witnessed if 0.8870 is defended.
CADCHF dipped -0.42% as bears continued down for the 4th consecutive week after breaking below 0.6600 all-time low. Sliding crude oil prices continue to weigh on the commodity-linked CAD. The Swiss Franc gained in the European session riding on safe haven flows amid the US dollar weakness. Later on, Wholesale sales and New Housing Price Index from Canada will be due. A rebound to 0.6780 may be witnessed in the near term.
European stocks slip on Monday ahead of earnings reports from big European banks this week. The UK100 was flat at +0.01% trading at the 7900 regions. CAC40 dipped by -0.23% a few ticks away from 7600. DAX in Germany lost -0.11% as bulls may target 16000 above 15 800.
US stock futures were quite subdued as investors awaited tech giants’ earnings reports. The US 500 futures were trading at -0.01% as it trimmed losses from 4110 as bulls may target 4140. US 30 futures were flat capped by 33 800 for further upside moves. US 100 futures were up +0.10% as buyers attempted to breach 13 000.
Elsewhere, bitcoin traded south on Monday despite a weaker dollar on the day. BTCUSD was down -0.50%, a continuation from last week`s dip as 25 400 remains a target on the downside.