Headlines:
- A quiet one so far in European morning trade
- 10-year JGB yields slowly inching back towards BOJ ceiling
- UK January retailing reported sales -23 vs -5 expected
- Month-end rebalancing should see the US dollar underperform - Morgan Stanley
- IMF proposes for BOJ to allow bond yields to move more flexibly
- Japan PM Kishida: Specific monetary policy tools are up to the BOJ to decide
Markets:
- AUD leads, JPY lags on the day
- European equities slightly higher; S&P 500 futures up 0.2%
- US 10-year yields up 2 bps to 3.482%
- Gold down 0.5% to $1,936.17
- WTI crude up 0.8% to $80.78
- Bitcoin down 2.6% to 22,983
It was a quiet session for the most part with there not being any major headlines to influence markets. Overall movement was also light, as we await key US data to perhaps provide something for traders and investors to work with once Wall Street comes in later.
Equities are cautiously optimistic, building on yesterday's strong rebound in US stocks. Nasdaq futures are up 0.6%, buoyed by Tesla's record revenue and earnings beat with S&P 500 futures up 0.2% on the day.
In FX, there wasn't much appetite as the dollar is keeping more mixed across the board with light changes for the most part. It is pretty much rangebound action, so there isn't a whole lot to talk about.
EUR/USD continues to hover in and around 1.0900 with USD/JPY inching up slightly only to stall at around 130.00 as the volatility trip continues to play out since the BOJ policy decision last week.
The aussie and kiwi are mildly higher, with AUD/USD hoping to test its August highs at 0.7125-36 while NZD/USD is continuing to knock on the door of offers at 0.6500 for now.
It's now over to US Q4 GDP data, durable goods orders, weekly jobless claims, and trade balance data to try and offer up something for markets to work with today.
