FX Update: The Dollar majors have been trading with little directional bias
FX Update: The Dollar majors have been trading with little directional bias so far today. EUR-USD has settled in the upper 1.1300s, up from Friday's 17-day low at 1.1353, and near the 1.1400 level, which roughly marks the midway point of a broadly sideways range that's been unfolding for three months now. Cable and AUD-USD managed to edge out two-session lows, though the magnitude of movement has been limited. USD-JPY traded moderately softer, though has held within Friday's range so far. An intraday low was printed at 109.47. EUR-JPY saw a similar downward drift, but also remained within its range seen on Friday, while AUD-JPY edged out a two-session low at 78.28. Stock markets in Asia lifted, although gains have mostly been moderate in magnitude, while S&P 500 futures have declined by 0.3%, correcting after the cash version of the index closed out on Wall Street on Friday with a 1.3% gain. China Q4 GDP data showed growth easing to 6.4% y/y, meeting expectations in declining from 6.5% y/y in Q3, while 2018 growth ebbed to 6.6%, the slowest annual growth since 1990. Fitch also reported that defaults on Chinese corporate bonds rose to a record high in 2018. Offsetting this were data showing China's industrial production beating expectations with 5.7% growth, while retail sales rose 8.2% y/y. Another offset are expectations for the U.S. and China to be more committed to finding resolution to their trade dispute as the consequences becoming increasingly evident on both sides of the Pacific.