Market sentiment reversed sharply on Friday with Deutsche Bank rallying 15% on rumors of a substantially reduced settlement number with the US Department of Justice. There is likely to be more headlines in coming days with the story far from over but for now risk is firmly on.
Monday has opened up firm as well with Nikkei and USD/JPY both positive. GBP/USD has opened lower as UK Prime Minister indicated that they will push forward with formal brexit request by March 2017. The initial negative reaction is somewhat perplexing given it reduces uncertainty but there is still many months of negotiations to go and perhaps it was just acknowledgement that Brexit is real and moving forward.
This week is huge for data with Friday’s NFP key for December’s FED rate hike chances whilst PMI data globally will give an update on Business sentiment. Locally the most important release is the RBA Decision on Tuesday where the new Governor is expected to move the central bank to a more neutral footing.
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