Another quiet economic data day
Some of last week’s USD strength has mitigated. However, that is only to be expected as a pullback. The real question is will the USD keep appreciating from here? Or will the bearish USD picture re-emerge. USD shorts were overcooked , so some of this is a short squeeze forcing the weaker leveraged hands to run. I suppose once the shock of a hawkish plot shift from the Fed has faded the question will be, how many hikes by when?’.
For now I am keeping with the short term ebb and flows with the USD as the medium term picture is too foggy for my mind. JPY crosses saw a decent bid yesterday and GBPJPY into the BoE meeting on Thursday looks good.
0630 BST Japan Nationwide Dept Sales
0700 BST Japan Machine Tool Orders
0700 BST UK Public Finance & Public Sector Borrowing
Debt to GDP levels will remain high for the UK due to COVID-19 induced borrowing.
1100 BST UK CBI Trends total orders
The CBI readings are a survey on manufacturers to rate the level of volume for orders expected during the next 3 months.
ECB’s Rehn speaking in Finnish Parliament hearing at 1015 BST