EUR/USD, USD/JPY flows: Trump talks to set the tone, along with central bank speakers
Flurry of Trump meetings to set the tone, focus on Middle East talks
Brent holds above $100 support into those
NZD manages a bounce after steep drop out of RBNZ comments
Various CB speakers from ECB and Fed today
Focus remains on Trump’s round of talks encompassing China’s Xi, Ukraine and most immediately in focus, Iran, with talks with a range of Middle East leaders. Ahead of those, Brent prices nudging back up having so far held the $100~ resistance/support area, waiting to see if anything actually substantive emerges after the big build up prior.
USD/JPY edges up in the recent 157-8 band while being careful of MoF warnings during the Japan holiday.
Otherwise, main interest comes from the broad range of central bank speakers. NZD managed a bounce after its recent heavy selloff and near 3-month lows, as RBNZ’s Breman suggested that if oil prices persist, it would lead to higher inflation than expected, while the economic recovery was strengthening and broadening.
Central bank speakers continue today with a broad range of ECB speakers including Lagarde set to appear today, while the Fed has Williams and Jefferson. RBA’s Ross also set to speak shortly. While interesting, most of these commentaries are secondary to the trajectory of energy prices near-term in terms of policy guidance.