A couple of light data points to move things along as the market continues to weigh up the reflation narrative once again
Congratulations to the Bucs for winning Super Bowl LV and also to the greatest of all time, Tom Brady, as he secures more Super Bowl wins than any franchise in the game.
Looking back at the market, the story of the day looks to center around the bond market as Treasury yields break higher. 10-year yields are up to 1.187% - the highest level since March while 30-year yields linger close to 2% ahead of European trading.
That is keeping yen pairs underpinned in general as USD/JPY continues to flirt with its 200-day moving average @ 105.57 while AUD/JPY continues to look poised for a breakout as Adam pointed out earlier here.
Meanwhile, equities are also keeping pace with last week's gains as US stimulus hopes continue to propel optimism in the past week. The Nikkei looks set for its highest close since 1991 above the 29,000 mark while S&P 500 futures are up 0.4%.
Elsewhere, major currencies are little changed in general after having seen dollar gains stall a little on Friday. Risk continues to be a key factor to watch but dollar sentiment is also one to pay attention to after having seen the greenback fail to beat some key levels on the charts i.e. 1.1967-76 in EUR/USD and 105.57-65 in USD/JPY.
0645 GMT - Switzerland January unemployment rate
Prior release can be found here. Much like most labour market reports, the furlough program is making it tough to read into underlying conditions with regards to Swiss joblessness. As such, take the readings with a pinch of salt.
0700 GMT - Germany December industrial production data
Prior release can be found here. German factory output is estimated to improve slightly towards the end of last year, as activity brushes aside lockdown measures for the most part. That said, the market remains more focused on the Q2/Q3 outlook now so the data here doesn't really hold much significance.
0900 GMT - SNB total sight deposits w.e. 5 February
Your weekly check of the deposits kept at the SNB by Swiss banks. This data is a proxy for FX interventions.
0930 GMT - Eurozone February Sentix investor confidence
Prior release can be found here. Investor confidence is expected to improve further as optimism grows surrounding the Q2/Q3 outlook in the euro area, in hopes that things will begin to normalise going into the summer season.
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.
