Risk trades remain in vogue this morning with the markets anticipating strong earnings from Goldman Sachs. Naturally one would buy copper and Brazilian shares on that news…(kidding).
Commodities markets show more momentum than currencies this morning. Oil is trying to build a base in the $58.25 region. It trades $1.40 higher $61.10 today.
Talk of central bank activity has tapered off in so far this week but range-trading prevails, so far.
The combination of US retail sales and Goldman’s earnings could push prices around. Hopefully the will both move in the same direction, giving traders a “clean read”. PPI will be a side show. Firmer oil prices are expect to push PPI up 0.9% on the month. Retail sales are seen up 0.4% and up 0.5% stripping out autos. Goldman is expected to earn $3.51 per share.
EUR/USD opens unchanged at 1.4000, with USD/JPY a shade firmer at 93.13 from 93.00 at 4 pm NY time Monday.