The financial markets have gotten off to a slow start with lack of fundamentals today. The Asian trading session saw the currency markets trading on a risk on theme with the Australian and New Zealand dollars making early gains. At the time of writing, The Aussie was up 0.58% after the currency opened the day’s trading at the lows of 0.7211. The Kiwi was also stronger gaining 0.39% for the day but remains range bound from Friday’s trading.
USDJPY which tested the highs of 121.4 gave back its gains as the Yen was seen trading strong. USDJPY is down -0.38% for the day trading near 121 but remains volatile ahead of the BoJ’s monetary policy decision due later this week on speculation that the Central bank could ease its QQE stimulus program.
The Asian equities were mixed with the Hang Seng down -0.15% but the Nikkei225 and the Shanghai closed with gains of 0.65% and 0.53% respectively. The gains in the Nikkei came about as Japan post announces its IPO. Japan’s postal service was privatized and the IPO raised 1.44 trillion Yen.
The European trading session was also quiet with no major economic releases. Germany’s Ifo business climate index declined to 108.2 in October from 108.5 previously. The Euro was however little change on the news. EURUSD was trading flat for the day, trading near Friday’s lows of 1.0998 at the time of writing.
The British Pound was relatively stronger as the Cable gained 0.14% for the day trading near 1.533 at the time of writing. There were no major releases from the UK but the Pound is likely to react to the UK’s GDP numbers due out tomorrow.
The US trading session is also quiet today as the Greenback continues to trade weaker into the US trading session. USDCAD is down -0.18% for the day, trading at 1.314 at the time of writing. The Canadian dollar remained strong despite Crude oil trading weaker, currently down -0.40%. WTI Crude oil hit a daily session high above $44.9 before falling to session lows of $44.2.
Later in the evening, the US New home sales data is due for release followed by the New Zealand trade balance.
