Markets Appear Calm on Monday

EU and US stock indices have been calm so far on Monday, showing some initial strength.

Later today, the euro zone’s Sentix Investor Confidence, a monthly survey showing the market opinion about the current economic situation and the expectations for the next semester, is expected to decline further to -9.7 from -7 previously. 

Additionally, BOE Governor Andrew Bailey will speak at the Stop Scams Conference. However, since the topic of his speech will likely avoid the monetary policy, his remarks might not cause any market volatility. 

During the US session, factory orders for February are seen dropping sharply to -0.6% monthly, down from 1.4% in January. Lastly, the Bank of Canada Bussines Outlook Survey, showing the business outlook in Canada, will be released, likely influencing the Canadian dollar. 

From other news, the US yield continues to flatten, reaching the inverse status as the 2-year yield is now higher than the 10-year yield. With that in mind, investors continue to buy the USDJPY pair, pushing it toward the 123 level today. 

At the same time, the EURUSD pair trades sideways, stuck in the 1.10 – 1.11 region. However, the massive divergence between US and EU monetary policies could lead to another leg lower toward 1.08.

In commodities, the WTI oil traded at around the 100 USD level, while silver moved higher toward 25 USD. Gold was seen flat near 1,925 USD during the London session.

Source: https://www.axiory.com/analytics/market-news/markets-appear-calm-on-monday