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Asian equities have started the week with a cautious tone as markets eye month-end flows, Wall Street witnessed a tough close to trading on Friday as hotter-than-expected US PCE data once again led investors to reprice US interest rates sparking further hawkish terminal rate expectations. As European bourses are set to open, reports out of the UK suggest that the UK PM Sunak and Eurozone counterpart Von Der Leyan are poised to announce that a long-awaited deal on the Northern Ireland protocol has been reached, reconciling trading arrangements in Northern Ireland, which is providing some much-needed support for risk appetite as trading gets underway for the week.

For the day ahead the lack of tier one data from the European session, with only Eurozone sector confidence indicators due for release, as such investors will be focused on central bank speakers on deck today, including ECB’s Lane and de Cos and the Bank of England’s Broadbent. Broadbent is providing opening remarks at the BoE’s conference on “New Digital Technologies and the Future Financial Landscape” and so may give much insight into the UK monetary policy outlook. With bond markets pricing in a further 125bp of interest rate hikes from the ECB, its officials may provide some additional clues into how likely this is. In the US, January durable goods data is due to be reported with the Fed’s Jefferson set to speak on the US inflation outlook. Data wise investors will be looking to the week ahead for directional catalysts with BoJ nominee Governor Ueda hearings in Japan, China PMI data, Eurozone inflation data, the ECB minutes, and US ISM metrics all set for release.

FX Options Expiration New York Cut

• EUR/USD: 1.0460 757m, 1.0500 1.5b, 1.0550 1b, 1.0600 625m, 1.0700 1.2b
• USD/JPY: 133.00 1.1b, 137.00 1.0b
• AUD/USD: AUD 0.6680 1.1b, 0.6800 1.1b, 0.6950 539m
   

Overnight News of Note

• Asian Shares Track Wall Street Decline On Hot Economic Data
• Dollar Advances As Traders Consider Higher-For-Longer Rates View
• Oil Lower On Firm Dollar, Market Shrugs Off Russian Supply Cuts
• RBNZ's Conway: Higher Rates Still Needed To Cool Economy
• Ueda Says Benefits Of BoJ Stimulus Outweigh Side Effects
• China Set To Overhaul Financial System Giving Xi More Control
• US Companies Say It Is Easier To Hire Despite Low Jobless Rate
• UK PM Sunak Claims To Win Big Concessions From EU - Times
• ECB President Lagarde: ECB Must Make Sure Inflation Returns To 2%
• Nissan Lifts 2030 Global Electrified Sales Target To 55% - Nikkei
• Pfizer In Early-Stage Talks To Acquire Seagen - WSJ

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
 

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 4000

• Primary support is 3885
• Primary objective is 4384
• Below 3890 opens 3835
• 20 Day VWAP bearish, 5 Day VWAP bearish

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EURUSD Bias: Intraday Bullish Above Bearish below 1.06

• Primary resistance is 1.0805
• Primary objective is 1.0430
• Above 1.0860 opens 1.09
• 20 Day VWAP bearish, 5 Day VWAP bearish

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GBPUSD Bias: Intraday Bullish Above Bearish below 1.21

• Primary resistance  is 1.2265
• Primary objective 1.1785
• Above 1.2265 opens 1.2337
• 20 Day VWAP bearish, 5 Day VWAP bearish

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USDJPY Bias: Intraday Bullish above Bearish Below 135

• Primary support  is 133.50
• Primary objective is 137.26
• Below 133.40 opens 132.80
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

AUDUSD Bias: Intraday Bullish Above Bearish below .6785

• Primary resistance is .7030
• Primary objective is .6635
• Above .7050 opens .7150
• 20 Day VWAP bearish, 5 DayVWAP bearish

(Click on image to enlarge)

BTCUSD Intraday Bias: Bullish Above Bearish below 23800

• Primary support 21500
• Primary objective is 26700
• Below 20300 opens 19500
• 20 Day VWAP bullish, 5 Day VWAP bearish

(Click on image to enlarge)

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