That Is Some Crude.

A very good morning to all, hope everyone had a wonderful weekend as we look to kickstart the week following NFP release last Friday. Here’s a quick recap of events overnight.

Tech retreat bring Japanese shares lower albeit mildly as support at 27,000 still holds. Aussie retail sales drop for the first time in 4-months, US equity futures holding prior gains which came as a surprise as NFP figures beat expectations by a country-mile which would have meant the hawkish tilt by the Fed was warranted. WTI Crude futures remain above the $91-mark, last seen trading positive on the session at $92.20 due to supply concerns.

As far as havens go, gold seems to be the winner as we are currently trading well above the $1800 on inflation concerns. The Yen however is retesting 2021 low once more. Cable seeing support still at 1.3500 and the Euro remains above 1.14200.

Per the usual Monday slate, quiet on the data front with Output MoM (Dec) from Germany at 0700GMT and although madame Lagarde is well-versed in her role now, it could be of interest to tune in to her speech to the European Parliament today at 1545GMT.

The path of the dollar remains the key indicator for asset moves still in my opinion, as we are trading sub 96.000 following both FOMC and NFP events. It's unlikely we don’t test the level this week (if not today) and a further push higher should see correlated FX pairs feel a little burn. My personal choice would be to search for non-haven dollar denominated metals and FX pairs that (respective Central Banks) and have not issued any type of tightening in the near future. How AUD/USD VS EUR/USD has traded is case in point. ?

On the speaker slate we have BoE’s Bailey’s Press Conference following the announcement at 1230GMT and ECB’s Lagarde post the ECB rate announcement at 1330GMT.

Have a great session ahead and see you all in the Duggan Capital Discord room for more LIVE discussion. To subscribe just click the purple button below.?

This was – Your Morning Reed.

Sources: Newsquawk, Bloomberg, Trading Economics.

Disclaimer: This piece is for information purposes ONLY & not meant as trading/investment advice. Reader discretion is advised. ?