We had a successful start of the new trading week across the European equity markets which could have been the aftermath of the euro’s decline seen on Friday following better than expected figures from the US labor market. Nonetheless, as the euro appears to resume its uptrend, strength of stock markets begins petering out. Having a half of the Monday’s session already behind, the euro is again the strongest currency in G10 basket.
Looking back to the Asian session there were little macroeconomic releases but it did not mean that markets were calm. While moves across the FX market were rather subdued, the Bitcoin price went crazy and smashed a resistance located at around $3000. It remains to be seen how far this surge is going to take us but it looks as if it’s a relief that a long feared “fork” that separated Bitcoin cash out of the chain, has not caused any significant disruptions.
Whilst oil prices hover around $49 per barrel, market’s attention turns to Abu Dhabi where the meeting of OPEC and non-OPEC countries takes place. The meeting pertains to compliance of the deal among several participants as well as issues with regard to monitoring sources overestimating production. Additionally, there have been revelations regarding a private meeting between Saudi Arabia’s oil minister Al-Falih and the most important hedge funds.
The data-wise is relatively muted on Monday but a count of important events is going to rise over time. It could be a massive week for NZD as the RBNZ will need to judge strong currency against the reports that more often than not have disappointed as of late. Furthermore, there will be releases of US inflation or UK’s industrial output.
At the end, it’s worth looking at three banks’ recommendations for USDJPY, GBPUSD and NZDCAD.