US Indices were mixed to start the week in Monday’s session in a low volatility session, Big Tech gave back some of their recent gains with a major pullback in Tesla (-6% on a Goldman Sachs downgrade) and Meta, Amazon and Microsoft all falling 2-3% saw the Nasdaq down over 1% to be the worst performing index.

The Russell 200 was the only major index to finish in the green, with a bounce in regional banking helping to lift that index seeing the Nasdaq 100 /  Russell 2000 ratio again find stiff resistance at 8.2, a level that historically indicated Tech being overvalued to the broader market.

FX Markets

USD was flat to start the week in a thin session with a lack of any real news flow, the US Dollar index trading within a tight range, highlighted by a low of 102.610 and a high of 102.830 as traders await a slew of central bank speakers and US data in todays session which should see some more volatility.

NZD was the G10 outperformer while the AUD was flat against the USD. NZD saw tailwinds after New Zealand’s Trade Minister said he had positive discussions with China on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). NZDUSD hitting a high of 0.6177 and seeing the AUDNZD take a leg down and looking to test the 1.08 level.

Safe-havens, CHF and JPY, were both marginally firmer against the USD. The recent slide towards 145 halted in USDJPY as comments from Secretary Matsuno and BoJ member Kanda regarding their displeasure at the one-sided trading of the Yen raised the specter of FX intervention (which the BoJ is no stranger to)

EUR was more-or-less flat as EURUSD traded between 1.0888-0920, with the single-currency briefly losing grip of the psychological 1.0900 level on the back of a bleak German Ifo survey and downbeat accompanying commentary. A late session rally did see EURUSD reclaim it , though as support it would be best described as precarious and is shaping to be a key level in the short term.

Gold tested the lower band of its recent range at 1933 to the upside in an attempt to re-enter the range. XAUUSD found some stiff resistance though, with the up move halted, and gold settling below the range where 1933 is shaping to have switched from support to resistance.

Tuesdays calendar is a little busier with Canadian CPI, US Consumer data and an appearance from ECB President Lagarde.