Headlines:
- US consumer price inflation the main focus on the week
- Japanese yen stays pressured to start the new week
- ECB's Centeno: Smaller rate hikes would require medium-term inflation nearing 2%
- US futures pare early losses in European morning trade
- Switzerland January CPI +3.3% vs +2.9% y/y expected
- SNB total sight deposits w.e. 10 February CHF 525.6 bn vs CHF 528.1 bn prior
Markets:
- NZD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.2%
- US 10-year yields flat at 3.738%
- Gold down 0.2% to $1,860.77
- WTI crude down 0.3% to $79.45
- Bitcoin up 0.6% to $21,673
It's a quiet start to the new week as markets are taking a deep breath before the US CPI data tomorrow. That is the main event in trading this week and we are seeing some mixed tones so far on the day.
Risk was initially more cautious but the mood improved as European traders got to their desks, with US futures reversing early losses to keep slightly higher on the day. That in turn is keeping regional indices more upbeat in Europe, building on the already good momentum from the start of the year.
In FX, the dollar was rather mixed early on but is now trading slightly lower as the risk mood improves a touch. The yen is the laggard though, as traders are still largely digesting the enigma that is Kazuo Ueda as he is set to take over from Kuroda as BOJ governor.
USD/JPY was down to around 132.20 in Asia before extending losses to 132.75 on the session. Meanwhile, the dollar is keeping in a modest range so far today but is slightly lower against the rest of the major currencies bloc at the moment.
All eyes though are on the US CPI data on Valentine's Day, so don't expect much conviction to the moves today.
