Long weekend in the US casts a shadow over markets to start the week | Forexlive
It will be Presidents’ Day in the US and domestic markets are closed, making for a long weekend. In turn, that is likely to translate to a more a lackadaisical mood for other regions as well. So far, it’s been quiet in Asia and that is almost certainly going to carry over to Europe considering the lack of key economic data releases today.
In FX, major currencies are rather subdued and holding in narrow ranges. The dollar is trading fairly mixed, after the indecisive picture painted last week.
EUR/USD trades back above its December low of 1.0723, having invalidated the break lower in the second half of last week. Meanwhile, USD/JPY continues to find itself caught in and around the 150.00 mark. Besides that, GBP/USD just can’t settle on a drop below 1.2600 while AUD/USD continues to contest its 100-day moving average, seen at 0.6540 currently.
In the bond market, we saw 10-year Treasury yields rebound in the latter stages last week. It is keeping above 4.20% but yields are still held back by the 100-day moving average near 4.33%. As such, that is also limiting much of the dollar poise for the time being.
In the commodities space, gold continues to shine as it extends a bounce off its own 100-day moving average. The precious metal is up 0.3% to $2,018 now in search of a third straight day of gains. Elsewhere, natural gas continues to be hammered lower as it nears the 2020 low. The heavy selling hasn’t let up whatsoever in the last five weeks.