Main Market Movers on Monday

All Eyes on JPY, EUR, GBP, USD, AUD, NZD!

After an eventful week with market highs and lows everywhere, traders need to be mindful of the following market movers on Monday.

First, JPY starts off weaker than expected despite Abe’s big win in Japan. Hence, USDJPY gains about 0.28%, heading towards 113.686. September’s housing prices in China are also in the pipeline for today, the figure of which points to a gain of 8.3%.

The US dollar index, which measures the greenback’s strength against a basket of 6 trade-weighted currencies, was quoted at 0.61% in the morning, reaching 93.57.

The tax reform put forward by President Trump got a huge burden off the legislators’ shoulders on Thursday after the Senate adopted the budget plan for 2018, which included a procedure giving control over to the Republicans to rewrite the tax code without requiring any Democratic support.

With this in mind, investors are looking forward to a fiscal kickstart that would push up the inflation, thus putting more pressure on the Feds  to increase interest rates, known as the ‘Trumpflation’ trade.

However, the Republicans need to come up with a tax bill amid conflicting opinions over what cuts are due, where and how to accommodate them so as not to shatter economic balance.

Next, the AUDUSD pair started off at around 0.78281, down by roughly 0.08%.

In Europe, the GBP traded higher compared to the week just passed, supported by hopes that Brexit negotiations would advance after Prime Minister Theresa May’s meeting with European leaders in  Brussels.

Moving forward, EURUSD was offered at the 50-day MVA on Friday, triggering a dip to 1.1764 the same day and causing the pair to acquire losses in Asia (where it trade around 1.1751). This morning, however, calls for the European currency are strong in light of the Catalonian events and the upcoming ECB conference. This may help the pair rise again.

GBPUSD seems to be extending is bounce from 1.3107 dip and get a head start this week at 1.32003.

The NZD lost nearly 1% on Friday, with the NZDUSD pair closing the week around 2.75% lower after an unexpected election outcome that fueled concerns  that the new government could potentially pursue the implementation of policies that might have a negative impact on the kiwi’s strength. The kiwi-greenback pair started the week at 0.69822.