- Mind the gap
- Risk stays in retreat mode to start the new week
- Japan reportedly likely to present nominees for BOJ governor next week
- Japan denies that it is close to nominating a list of potential BOJ governors
- ECB's Kazaks: There will be a 50 bps rate hike in March barring significant data shock
- ECB's Holzmann: The risk of doing too little dwarfs risk of overtightening policy
- Eurozone February Sentix investor sentiment -8.0 vs -12.8 expected
- UK January construction PMI 48.4 vs 48.8 prior
- Germany January construction PMI 43.3 vs 41.7 prior
- Germany December industrial orders +3.2% vs +2.0% m/m expected
- SNB total sight deposits w.e. 3 February CHF 528.1 bn vs CHF 528.0 bn prior
- GBP leads, JPY lags on the day
- European equities lower; S&P 500 futures down 0.6%
- US 10-year yields up 6.7 bps to 3.598%
- Gold up 0.5% to $1,873.82
- WTI crude up 0.6% to $73.82
- Bitcoin down 0.1% to $22,912
The day started off with a focus on Japan after the yen opened with a gap lower amid a report stating that BOJ deputy governor Amamiya was called on to succeed Kuroda as governor of the central bank. In typical fashion, Japanese officials denied that and the yen's losses were pared slightly but not by much.
But as we got into European trading, the focus stayed on the mood from Friday as the strong US jobs report continues to reverberate across markets. Risk remained on the defensive with stocks and bonds being sold during the session.
As such, the dollar inched higher with EUR/USD keeping below 1.0800 around 1.0760-70 levels and GBP/USD also losing some ground to 1.2025 before picking itself up to 1.2070 now. The commodity currencies remain weak amid softer risk tones with AUD/USD down 0.1% to 0.6910 and NZD/USD down 0.2% to 0.6320 currently.
USD/JPY opened with a gap higher at 132.50 early in Asia before falling to 131.50 and is now trading at 131.95, still up 0.6% on the day.
It's now over to Wall Street to digest the mood to start the new week and we shall see if the penchant for dip buying will continue.