Market Movers: USD stronger against its G10 peers – TDS

FXStreet (Barcelona) -The TD Securities Team shares the market performance in the Asian session, noting that Equities across Asia continued to advance post the ECB decision while the FX space saw USD stronger against all of its G10 peers.

Key Quotes

“It was a relatively quiet day in Asia despite the frantic market movements following the larger-than-expected ECB QE announcement yesterday. Equity markets continue to advance in Asia on anticipated ECB liquidity and above-consensus flash HSBC manufacturing PMI with all indices in the region in the green. Most notable was the +1.3% advance in Chinese equities that saw a complete reversal of the 7.7% Monday decline to hit fresh multi year highs. Other markets - India +0.6%, Australia +1.5%, Japan +1%.”

“The risk on moves were not evident though in FX. The USD is stronger against all G10 peers, firming later in the session, with the AUD faring the worst –0.55%, breaking below US$0.80, as the market speculates the RBA could cut rates as soon as February 3. The Euro is down 0.4% at US$1.1325, DKK and SEK –0.3% and the NZD is not far behind –0.2% at US$0.7490.”

“ACGB and NZGB yields are higher by around 2-3bps despite sentiment shifting in favour of the doves this week, pointing to FX sensitive driven selling in fixed income. Mild bias for the curve to steepen continues.“

“Commodities are generally down on the day, the USD providing stiff resistance across most of the sector. Copper futures are down 1.3%, iron ore futures -1.8%, gold –0.4% but Brent crude adds 2% to be US$49.50, but did get as high as US$49.80 closer to the open (the death of the Saudi King was attributed).”