Market Sentiment Stabilises

The dust settled after post-FOMC market swings, allowing risk sentiment to stabilise. A strong earnings report from Apple drove a tech-led uptick in U.S. e-mini futures, helping reduce demand for safe haven assets. Major currency pairs were happy to hold tight ranges in the final Asia-Pac session before Lunar New Year holidays.

• The yen traded on a softer footing, with USD/JPY consolidating above breached resistance from Jan 18 high of Y115.06.
• The NZD failed to jump on the risk-on bandwagon and underperformed all of its G10 peers, although domestic headline flow was fairly thin.
• U.S. Core PCE Price Index & final U. of Mich. Sentiment, EZ sentiment gauges as well as flash German & French GDPs take focus from here, in the absence of any notable central bank speak.