Date : 18th April 2018.
MACRO EVENTS & NEWS OF 18th April 2018.
FX News Today
European Outlook: The recovery on global stock markets continued during the Asian session, after a good start to the U.S. earnings season. Bonds rallied in Asia, and China’s 10-year yield dropped more than 14 bp after the People’s Bank of china cut the reserve requirement ratio for banks to bolster credit amid a crackdown on shadow lending. 10-year JGB yields are down -0.2 bp at 0.0275, while 10-year Treasury yields are up 1.1 p at 2.840%. Early signs that the Trump-Abe summit won’t lead to new trade demands from the U.S. helped to bolster confidence and the Nikkei is up 1.585, the ASX 200 0.29%, Hang Seng and CSI 300 0.87% and 0.47%. China’s automakers were hit by plans to allow foreign companies to take full ownership of their local ventures. U.S. futures are posting further gains. Oil prices are higher and WTI future is trading at USD 67.12 per barrel.Today’s calendar has the final reading of Eurozone March HICP inflation, which is expected to be confirmed at 1.4% y/y, while U.K. CPI is seen holding steady at 2.7%.
FX Update: Narrow ranges have mostly prevailed into the London interbank open, with most of the main dollar pairings holding well within their respective ranges from yesterday. This has been seen amid an ongoing recovery rally in global stock markets as trade and geopolitical concerns continued to abate. EURUSD has held a narrow range in the upper 1.2300s, below the three-week high that was seen yesterday at 1.2414. Cable and AUDUSD have been similarly directionally challenged. USDJPY has been the biggest mover, rising some 30 pips in making a peak of 107.38, breaching yesterday’s peak on route but falling short of Monday’s peak by 1 pip.
Charts of the Day
Main Macro Events Today
* UK Retail sales – a 0.5% m/m decline anticipated in March, which will be payback for the strong 0.8% m/m gain in the month prior.
* UK CPI – CPI expected to remain unchanged 2.7%, above the BoE’s 2.0% target.
* Eurozone CPI – widely expected to confirm the headline rate at 1.4% y/y, up from 1.2% y/y in February, but this is largely due to base effects from energy and food prices, as well as the earlier timing of Easter.
* BoC Statement & Conference – projections remain for no change to the 1.25% rate setting, along with a cautiously constructive growth outlook salted with trade uncertainty. An as-expected outing would maintain the base-case for further gradual rate hikes this year. The BoC will also release the Monetary Policy Report.
* Fed’s Quarles, & William Dudley Speeches
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Please note that times displayed based on local time zone and are from time of writing this report.
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