Markets rebound after recent sell-offs
Markets rallied overnight, pegging back some of the losses sustained last week.
Further Fed easing sent the USD down overnight, allowing major currency pairs to recoup some of the value they lost last week. The EURUSD began the week at $1.12322 and slid to lows of $1.12249 early in day. It came off those lows before falling back mid-session. However, it bounced off back and rallied throughout the rest of the day, peaking at $1.13320 late. It is currently at yesterday’s highs. The GBPUSD opened the week at $1.25083, remained steady early, then fell to lows of $1.24531 mid-session. It surged off those lows, peaking at $1.26058. It has started Tuesday strongly and is now trading at $1.26247.
Indices started the week positively, regaining many of the losses that were suffered last week. The Dow opened at 25,301.22 (250 points lower than Friday’s close) and looked in trouble early, falling to lows of 24,554.29 mid-session. The Dow bounced back and began rallying shortly after, rocketing to a high of 25,890.20 late in the day. That momentum has continued in early Tuesday trading and is now at 26,052.00. The Dax followed the Dow’s lead after starting the week at 11,818.23. Like its US counterpart, the Dax fell early, bottoming-out at 11,588.14 heading into mid-session trading. Those losses were not held for long as the German index marched off its lows, hitting highs of 12,100.54 late in the day. The Dax has opened Tuesday higher and is now trading at 12,214.76.
The day ahead sees the release of some important economic data from the US. Retail and Core Retail Sales figures is expected to show a big rebound from the previous month which saw 16%+ decline. Retail Sales are expected to show a growth of 7.9%, while Core Retail is tipped to grow by 5.5%.
Other data published today includes:
Canada – Foreign Securities Purchases
UK – Claimant Count Change, Average Earnings Index, Unemployment Rate
Japan – BoJ Policy Rate, Monetary Policy Statement and Press Conference
Europe – European & German ZEW Economic Sentiments, German Final CPI & WPI, Swiss SECO Economic Forecasts
US – Capacity Utilisation Rate, Industrial Production, Business Inventories, NAHB Housing Market Index, Fed Chair Jerome Powell Testifies
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