Global Markets:
- Asian stock markets: Nikkei down 0.65 %, Shanghai Composite gained 1.45 %, Hang Seng rose 1.60 %, ASX 200 up 0.05 %
- Commodities: Gold at $1237 (-0.05 %), Silver at $15.33 (+0.60 %), WTI Oil at $38.60 (+0.80 %), Brent Oil at $40.05 (+0.55 %)
- Rates: US 10 year yield at 1.81, UK 10 year yield at 1.41, German 10 year yield at 0.14
News & Data:
- Japan Industrial Production (MoM) Feb, P: -6.2% (exp -5.9% prev 3.7%)
- Japan Industrial Production (YoY) Feb, P: -1.5% (exp -1.7% prev -3.8%)
- New Zealand Building Permits (MoM) Feb: 10.8% (prev -8.2%)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/C 27 Mar): 114.5 (prev 116.0)
- PBoC Fixes Yuan At 6.4841 (prev 6.5060)
- Fed Chair Yellen: Must move with caution regarding US rate hikes
- Yellen: Inflation expectations may have drifted lower
- Yellen: Global risks remain, although risk from overseas to U.S. likely limited
- Yellen: If needed Fed has tools to provide accommodation even if rates return to zero
Markets Update:
The US Dollar declined across the board yesterday, after dovish comments from Fed Chair Yellen. She said that the Fed has to proceed with caution regarding further rate hikes due to global uncertainties, which suggests that an April rate hike is now definitely off the table.
EUR/USD rallied from 1.1180 to 1.13 following her comments. In Asia, flows were light and the pair consolidated in a 1.1285-1.13 range. GBP/USD climbed from 1.4260 to 1.44 yesterday and traded in a 1.4370-1.44 range overnight.
USD/JPY has come under renewed pressure after the Yellen speech and the pair remained offered in the Asian session, falling to a low of 112.40 earlier. Support is seen in the 112.15-35 area, but a break below would suggest a move back to 111.
AUD/USD rose to 0.7640 in yesterday's late NY session and extended gains to 0.7648 overnight, while NZD/USD rallied to 0.6880. NZD/USD faces some heavy resistance ahead of the 0.69 level and a clear break above it, would be significant.
Upcoming Events:
- 09:00 BST – Norway Unemployment Rate
- 10:00 BST – Euro Zone Consumer Confidence
- 13:00 BST – German CPI
- 13:15 BST – US ADP Nonfarm Employment Change
- 15:30 BST – US Crude Oil Inventories
