US equity markets are trading in minor negative territory with equities drifting lower at the open with a lack of key macro-economic data adding direction to markets. Volumes have been thin in the US due to market holidays in Asia and inclement weather in the US and Europe over the weekend and early part of Monday. T-notes have also ticked lower with little market moving events, ahead of US supply this week with the treasury selling 3s, 10s and 30s from Tuesday through Thursday.
In the FX markets, EUR/USD moved higher following comments from ECB’s Weidmann after he said EUR isn’t seriously overvalued and that FX role in monetary policy only in terms of inflation. EUR/USD made a sustained break through 1.3400 following these comments although has drifted lower in recent trade to trade at 1.3408 last. WTI crude futures moved higher following the comments as USD weakness was observed which boosted the energy complex. Furthermore, Goldman Sachs said they saw the WTI/Brent spread narrowing to around USD 7.50/BBL on average in Q1 2013 which has had an effect on WTI price action.
Looking ahead, the session remains light with no macroeconomic data releases or key speakers scheduled for the rest of the session. Earnings season is also slowing down with no large-cap earnings after market.
Print 18:13, 11 Feb 2013 - Market Analysis - Source: RANsquawk
RANsquawk provides audio news and commentary for over 15,000 professional traders and brokers worldwide. Services include: