Themes

• General mood is “risk off”
• Just when you thought it couldn’t get any quieter on currencies….
• Market to remain quiet until Thursday night’s U.S. data

What’s Moving

Currencies were again very quiet in Asia today, with little movement from overnight, combining with a lack of fresh trading incentives locally to see extremely tight ranges. While volumes were light, two-way position adjustment was seen as the dominant flow.

Oil has consolidated slightly lower levels, while gold is ranging near the overnight highs.

We expect the market to remain quiet until tomorrow night, when the U.S. will release its inflation and Initial Claims numbers.

Data tonight sees:

• German Trade (E: 11.3bln)
• Italian Industrial Production (E: -0.8%)
• U.S. Crude Oil Inventories (E: 1.5mln)