GBP is remains weak after yesterday’s BoE disappointment, while NZD is strong due to Eamonn’s earlier report on positive trade balance and employment figures.
Risk on tones were felt across markets when the market opened with gousto due to President Biden’s announced infrastructure plan. Equities futures were up, oil, copper, and iron ore were all supported, yields were a little flat, but AUD, NZ, and CAD were higher while the USD, JPY, and CHF fell.
Even though OPEC+ sources predict a 500kbps increase in production next week, US oil remains a buy on the dips. Rising demand for 2H2021, limited inventories, political opposition to oil investment, and rising air travel have prompted some to predict oil at $100 by the end of the year. Around $68 is a good position to purchase medium-term dips because stops can be put close to a declining trend line.
In what has been a blockbuster week for Fed speakers overall, all eyes are on the US session for PCE data and more Fed speech.