Traders pausing on Monday

There has not been huge volatility so far on Monday, and most of the markets were calm or with only a marginal daily difference during the Frankfurt session.

Earlier in the day, China’s central bank injected more liquidity into its financial system, and added 700 billion yuan (circa 100 billion USD) of one-year funding via the medium-term lending facility, seeking to keep a fragile economic recovery on track.

That was good news for equities, as basically everything is good news for equities and indices surged again, with the US indices up some 0.3% during the London session.

The greenback was trading mixed today. The EURUSD pair was flat near 1.1840, and the USDJPY and GBPUSD pairs were also without any significant change so far on Monday. However, the US dollar was a bit stronger against commodity-linked currencies. 

There is no macro news on the agenda today, apart from the NY Empire State Manufacturing Index, which is not a market-moving indicator.