By Giles Coghlan, Chief Currency Analyst at HYCM
Risk on for the start of the week
To start the week Asian equities are broadly higher as the risk on sentiment settles in further. The US-China phase 1 trade deal is now 99% there. In other words, everything seems virtually done, apart from the signature.
The calendar ahead for the European session is fairly light with some manufacturing PMI’s. After a run of poor European manufacturing PMI’s we should start to see these pick up as optimism over the US-China phase 1 deal starts to trickle in with new orders. Data releases ahead as follow (all times in GMT):
08:50: France Manufacturing PMI
08:55: Germany Manufacturing PMI
09:00: Swiss Total sight deposits
09:00: Eurozone manufacturing PMI
09:30: UK construction PMI
Central bank speakers
08:00: ECB’s Hernandez is speaking in Madrid. Not expecting anything much here until we get Draghi’s replacement, Christine Lagarde making her stamp on the ECB’s moves going forward. His last comment I have record of was when he was warning of an imminent recession in some Eurozone countries.