Risk appetite continues into the Asian session, with the region's stocks higher after oil and metal prices gained and US housing starts came in better than expected.
- The Japanese yen and the US dollar weakened against higher-yielding currencies as Asian stocks rose for a fifth day on a better economic outlook.
- S&P's 500 firms that have reported second quarter results since July 8 beat estimates by 16%.Â If the better earnings trend continues this week, the market could see further weakness in the safe-haven currencies.
- CIT may announce an agreement for $3 billion in financing from bondholders as soon as today, in a move to avoid bankruptcy.Â If agreement falls through, this would give the 101-year-old commercial finance company a chance to restructure its debt outside of bankruptcy.
- US stocks closed out their best week in four month on Friday with IBM's strong results in the second quarter easing disappointing results from GM.
Currency to watch out for: EURUSD & GBPUSD
- The EURUSD pivot point is at 1.4090 with a preference to enter into long positions at 1.4100
- The GBPUSD pivot point is at 1.6340 with a preference to enter into long positions at 1.6350
Today's calendar and market movers:
- Canada Wholesale Sales month on month expected to drop to -2.0%
- US CB Leading Index month on month expected to come at 0.5% for June
- US FOMC Member Lockhart is due to speak about the US economic outlook at the Rotary Club, in Nashville.
- Wall Street finished mixed on Friday with the Dow up 0.4%, S&P down 0.04% and the NASDAQ up 0.1%
- As of 06:00 GMT the Nikkei is at 0.55% and the Hang Seng at 2.4%