US, UK & CHN markets will be closed to start the week, so the week effectively starts on Tuesday. Top-tier data and FBI Director James Comey’s hearing before the Senate Intelligence Committee (no date set as yet) will keep US developments in the global market spotlight. As usual, nothing came out of the G7 meeting so it should be a dull start to the week.
USD: Key data this week with PCE Deflator & CB Consumer Confidence (Tue), ISM-Manuf. (Thur) and finally Non-Farm Payrolls (Fri).
EUR: Draghi Speaks on Monday, then we have Ger CPI (Tue), EU CPI & Ger Unemployment (Wed), Manuf. PMIs (Thur).
GBP: Manuf. PMI (Thur) and Construction PMI (Fri)
CAD: Q1 GDP (Wed) and Trade Data (Fri)
AsiaPac: Building Approvals (Tue), CAPEX & Retail Sales (Thur) are the key data points for AUD. NZD has the RBNZ Financial Stability Report (Tue) & ANZ Business Conference (Wed). China has PMIs (Wed) and Caixin PMI (Thur).
Given the holiday on Monday and NFP on Friday, alongside Comey’s potential testimony, this week will be tricky. Until new information is released, we need to stick to the trendy instruments as they closed on Friday. As such, I remain bullish on Nasdaq & SP500, and on the FTSE. I remain bullish on bullion. In FX, GBPNZD & AUDNZD short are decent bets on NZD strength, whereas GBPCAD & EURGBP are alternative plays on GBP weakness. As usual, updates will follow in the morning Cause & FX sentiment report (subscribers only).
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