Currency markets are quiet to start the week, a stark comparison to last week when a slew of risk events caused volatility.
Overview
Optimism surrounding a future trade deal with China is dominating the headlines this morning. U.S. Commerce Secretary Wilbur Ross said that the “Phase one” trade deal with China could be coming “very shortly.” The reported optimism may just be the result of a lack of other headlines to report.
Later this morning, U.S. factory orders and durable goods will cross the wire. PMI Services and ISM Non-manufacturing will highlight Tuesday. The rest of the week will be quiet on the economic data front, but there will be a number of Fed speakers throughout the week that will merit attention.
What to Watch Today…
- Factory Orders and Durable Goods
Complete Economic Calendar can be found here.
EUR
EUR/USD held a tight 25 basis point range overnight. The Euro initially dipped following a report that showed Spanish manufacturing PMI showing a deeper contraction than economists estimated. However, the common currency quickly retraced its losses. EUR/USD is near the strongest level in a month.
Incoming European Central Bank President Christine Lagarde will give her first speech in her new job in Berlin today.
NZD
The New Zealand dollar rose for a sixth day overnight and touched its strongest level since mid-August. The Kiwi got a little support as risk sentiment improved on China trade news. New Zealand Prime Minister Jacinda Arden said that New Zealand and China have successfully concluded talks to upgrade their free-trade agreement. The Kiwi has given back most of those gains in early trading to float in familiar ranges.
