• Important week for euro as ECB meeting is scheduled for Thursday

  • Stock markets seem to ignore US government shutdown

  • Bitcoin remains under pressure

Markets set for a calm Monday as today’s economic calendar looks empty. European stock markets rise after SPD decided to resume formal coalition talks with CDU. NZD remains the strongest currency in G10 basket today. Oil rises following bullish comments on supply deal from Saudi Arabia.

Along with the fading strength of the US dollar emerging market currencies might find themselves in the limelight in the upcoming years. The South African rand may be one of the beneficiaries when the 75-year old president Zuma is finally ousted as African National Congress meeting chose that Zuma must leave his office without pinning down when though.

This week is all about the euro. After a surge above 2017 highs, EURUSD seats well above 1.22. Is this too much for the ECB or – to the contrary – will Mario Draghi provide fresh fuel to the rally?

Bitcoin volatility was quite contained over the weekend as the price stayed within a short-term consolidation. Although sellers seem to still hold an advantage the price was reluctant to slip below a pivotal support area.

Global stock markets reaction to US government shutdown was negligible. First Asian session of the week was mixed with Chinese equities posting decent gains. European indices inched higher on the opening following the news about resumption of the German coalition talks.

The beginning of this week’s trading has been quite calm as major currencies are trading more or less at the same levels as they were on Friday’s close. On the other hand increased volatility was seen at the start of the week on the Turkish lira following mounting geopolitical tensions.

Today’s economic calendar seems empty what is usually the case for Mondays. Yet this week looks promising with ECB meeting scheduled for Thursday and the US GDP figures to be published on Friday. Apart from that, oil traders may want to stay cautious ahead of DOE report as seasonality shows we are entering a period of oil inventories increases.