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MARKET INSIGHT

With the ECB meeting this week and the Fed and BOE next, there will be an absence of central bank speakers over the coming days, leaving the market to once again be headline-driven.

  • The biggest story overnight is the surge in nickel prices with a short squeeze driving prieces to over $100,000/ton from below $30,000/ton last week. The impact on other commodity markets will be closely monitored.
  • On the data front there is little that is likely to drive markets: German industrial production was stronger than expected and we have Spain IP, Italy retail sales and a final print of Eurozone Q4 GP all due this morning. US trade and wholesale inventory data is unlikely to move the docket either.
  • Moves have been more limited overnight with Eurodollar futures a little lower and the antipodeans underperforming in FX.

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