Mood is generally positive in Asian session today, with Hong Kong HSI leading other major indexes higher. While the G7 communique released after the meeting in Hiroshima drew furious response from both China and Russia, there was little reactions among investors. Dollar is trading mildly lower, followed by Canadian and Aussie. Kiwi is currently the stronger one as markets await this week's RBNZ rate hike. Yen is also recovering, followed by Euro and Swiss Franc. But overall, almost all major pairs and crosses are bounded inside Friday's range.
The forex markets have been relatively quiet during today's Asian session, with currency pairs staying within Friday's range. Major stock indexes are also demonstrating mixed performance in a tight range. Inflation data from the Eurozone and the US will be closely monitored this week. Although these figures are crucial in determining the future rate path, reactions to this week's data may be somewhat subdued, given that both ECB and Fed meetings will not reconvene until May.
This week’s main event will be when a little inflation report comes out. The US CPI report for December is expected to show disinflation trends remain firmly in place.
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