Themes

• General mood is “risk off”
• ECB’s Lagarde: Price pressures will subside before becoming more entrenched
• Gold firmer overnight, oil slightly weaker

What’s Moving

With no key data on tap in the U.S. overnight, it was tough going for forex markets. Most of the volume that did go on was position adjustment and order driven and the upshot was that no range extensions were seen on most of the majors.

USD/CHF did break slightly higher, while Sterling broke slightly lower, but New York closing levels took prices back to familiar territory.

Dovish comments from ECB President Lagarde had little impact on the market overnight.

Thoughts

Given the overnight session its hard to have high expectations for today. We expect continued consolidation of recent ranges in Asia, with perhaps some Euro weakness after the overnight comments from Lagarde.

Data in Asia today sees:

• Japanese Household Spending (E: 0.0%), and
• Australian NAB Business Confidence

Pivot Points