Global Markets:
- Asian stock markets: Nikkei up 2.50 %, Shanghai Composite gained 2.10 %, Hang Seng rose 2.70 %, ASX 200 rallied 1.35 %
- Commodities: Gold at $1254 (-0.50 %), Silver at $16.12 (-0.65 %), WTI Oil at $41.80 (-0.90 %), Brent Oil at $44.45 (-0.55 %)
- Rates: US 10 year yield at 1.79, UK 10 year yield at 1.44, German 10 year yield
News & Data:
- China Trade Balance (Mar): $29.86bln (exp $34.95bln prev $32.59bln)
- China USD Exports (YoY) Mar: 11.5% (exp 10.0% prev -25.4%)
- China USD Imports (YoY) Mar: -13.8% (exp -10.1% prev -13.8%)
- Australia Westpac Consumer Confidence Index (Apr): 95.1 (prev 99.1)
- Japan Money Stock M2 (YoY) Mar: 3.2% (exp 3.1% prev rev 3.2%)
- Japan Money Stock M3 (YoY) Mar: 2.6% (exp 2.5% prev rev 2.6%)
- Japan PPI (MoM) Mar: -0.1% (exp 0.0% prev -0.2%)
- Japan PPI (YoY) Mar: -3.8% (exp -3.5% prev -3.4%)
- PBoC Fixes Yuan At 6.4591 (prev 6.4616)
- BoJ's Harada: Japanese Prices Don't Appear To Be Rising, If Risks Appear Should Ease Further — BBG
- Harada: Consumption Likely Flat, With GDP Increasing Slightly
- Harada: Not Denying Recovery Is Still Weak
- Fed's Lacker: Case for hikes is clear, though hikes should be gradual
- Fed’s Lacker: Pace Of 2016 Hikes Reflected By December Median Is Most Likely Appropriate — RTRS
- Lacker: Data Since March Supports Inflation Firming
- Fed's Williams: 2-3 hikes this year reasonable, hikes should be gradual, sees inflation on right track and at 2% by end next year – RTRS
- Doubleline’s Gundlach: Fed Hike 'Increasingly Likely' One And Done Scenario — BBG
- Gundlach Sees Gold At $1400, Harder For Oil To Reach $50 Than It Was $40
- IMF’s Furusawa: BoJ’s Negative Rate Has Limits But Is Good For Economy — RTRS
- Furusawa: Recent JPY Appreciation Not Detached From Fundamentals
- Furusawa: G20 Warning Against Devaluation Will Not Constrain BoJ
Markets Update:
USD/JPY rallied to a high of 108.91 overnight, supported by rising Asian stock markets. Offers can be expected at 109.10 and ahead of the 110 level, while bids lie at 108.20 and 107.80.
EUR/USD broke out of its 10-day range yesterday, but quickly reversed gains, falling back to 1.1350. In Asia, the pair started at 1.1390 and declined to 1.1365. GBP/USD was quite as usual and traded in a 1.4255-80 range.
USD/CAD broke below 1.2850 support yesterday and downside momentum accelerated once the stops through 1.2840 and 1.2820 were triggered. The pair extended losses to 1.2750 later and in Asia, it consolidated in a 1.2750-80 range. Today, the Bank of Canada will decide on interest rates and is expected to keep them unchanged.
Upcoming Events:
- 07:45 BST – French CPI
- 08:00 BST – Spanish CPI
- 10:00 BST – Euro Zone Industrial Production
- 13:30 BST – US Retail Sales
- 13:30 BST – US PPI
- 15:00 BST – Bank of Canada Interest Rate Decision
- 15:30 BST – US Crude Oil Inventories
- 16:15 BST – Bank of Canada Governor Poloz speaks
- 19:00 BST – US Beige Book
