Eurozone Q4 advanced GDP data due today
The manic moves are starting to calm down and that so happens to be good news for broader risk sentiment as we observe more risk-on tones ahead of European trading.
Asian equities are tracking higher on the day while S&P 500 futures are up 0.5% and Nasdaq futures up 0.7% currently, with the dollar slightly lower across the board.
With the retail trading frenzy showing signs of settling down and CME as well as CFTC sending warning signals on silver, we may be able to get back into focusing on broader market sentiment as well as the "economy" moving forward.
The RBA surprised earlier by adding to QE and while that may err more on the cautious side, any deeper pullback in the aussie is still a buy in my view - especially when weighing up the balance of risk sentiment in general.
The drop in AUD/USD earlier also coincides with a rejection of its 100-hour moving average closer to 0.7659 as sellers keep near-term control for now.
0700 GMT - UK January Nationwide house prices
Prior release can be found here. UK housing market conditions are expected to continue to run hot as the stamp duty holiday should fuel buying activity in Q1 as well.
0745 GMT - France January preliminary CPI figures
Prior release can be found here. French inflation is estimated to pick up a little to start the year but in the context of the bigger picture, it still should be relatively subdued.
0900 GMT - Italy Q4 preliminary GDP figures
Prior (Q3) report can be found here. Italian GDP is estimated to shrink by 2% q/q towards the end of last year, reflecting similarly subdued conditions across the region.
1000 GMT - Eurozone Q4 advanced GDP figures
Prior (Q3) report can be found here. Eurozone economic output is estimated to contract by nearly 1% q/q and while there have been better-than-expected readings seen from Spain, France, and Germany, it might not be enough to avoid a potential double-dip recession (even if marginally) as we get into things this year.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
