Themes

• General mood is “risk off”.
• BOJ kept interest rate at negative 0.1%.
• Eurozone CPI hit the expectation.
• Fed focus on returning inflation to 2%.

What’s Moving

Most major currencies gave up some gain last Friday, but still hold a good support on daily chart. At early Asian session, bulls pushed up with a small volume.

Crude oil back to 110.00 region last Friday, with dead cross on daily chart we may probably see further downside risk this week.

Gold stuck between the range of 1805.0 and 1850.0. With no further instruction for bulls and bears, it should keep ranging at this stage.

Thoughts

Powell announced that Fed is focusing on returning inflation to 2%, we may see more hawkish Fed probably on the next FOMC. With further tightening monetary policy, dollars should continue being strong. Calendar is really light this morning, more important market event coming later at night.

Keep an eye on the following event coming soon:

• ECB President Lagarde Speaks

Pivot Points