Global Markets:
- Asian stock markets: Nikkei down 1.10 %, Shanghai Composite gained 0.05 %, Hang Seng declined 1.00 %, ASX 200 fell 0.90 %
- Commodities: Gold at $1271 (+0.05 %), Silver at $17.09 (-0.10 %), WTI Oil at $46.25 (-1.00 %), Brent Oil at $47.75 (-0.75 %)
- Rates: US 10 year yield at 1.74, UK 10 year yield at 1.41, German 10 year yield at 0.15
News & Data:
- New Zealand Retail Sales Ex-Inflation (QoQ) Q1: 0.8% (exp 1.0% prev 1.2%)
- Japan Money Stock M2 (YoY): 3.3% (exp 3.2% prev 3.2%)
- Japan Money Stock M3 (YoY): 2.7% (exp 2.6% prev 2.6%)
- PBoC Fixes Yuan At 6.5246 (prev 6.4959)
- Fed Chair Yellen Reiterates Gradual Approach To Interest Rate Increases — BBG
- Yellen: Inflation Will Return To Fed 2% Goal Over Time
- Yellen: Fed Will Adjust Policy If Outlook Changes Unexpectedly
- Yellen: Wouldn't Rule Out Negative Rates In Very Adverse Case
- Fed's George: Favours interest rate hike, rates are too low for current economic conditions – BBG
- George: Employment strong, wages sluggish – BBG
- Asia shares slip, yen near two-week low on BOJ stimulus expectations – RTRS
- BOJ will act decisively using its 'ample' tools: Kuroda – RTRS
- Oil prices fall on stronger dollar; Russia warns of longer crude glut – RTRS
- Dollar holds gains, U.S. data awaited for fresh incentives – RTRS
Markets Update:
USD/JPY declined overnight, along with the Nikkei, after it failed once again to break above 109.40 resistance yesterday. The pair started the trading day around 109.05 and fell to a low of 108.70 earlier. Bids are expected at 108.20 and around 107.80, while offers are reported at 109.40 and in front of the 110 level.
EUR/USD remains quiet and the pair traded in a 1.1365-80 range overnight. Support is seen at 1.1360 and 1.13, while resistance lies at 1.1445 and 1.1475. GBP/USD volatility increased yesterday after the BoE meeting, but faded quickly. In Asia, the pair settled in a 1.4425-55 range.
The commodity currencies are weaker against the Dollar. AUD/USD fell from 0.7325 to 0.7285, where it found support for now. NZD/USD declined from 0.6830 to 0.6795 and USD/CAD rallied to 1.2870, up roughly 100 pips from yesterday's low.
Upcoming Events:
- 07:00 BST – German GDP
- 07:00 BST – German CPI
- 09:00 BST – Italian GDP
- 10:00 BST – Italian CPI
- 10:00 BST – Euro Zone GDP
- 13:30 BST – US PPI
- 13:30 BST – US Retail Sales
- 15:00 BST – US Michigan Consumer Sentiment
- 20:30 BST – US CFTC Positioning Data
