Date : 2nd May 2018.
MACRO EVENTS & NEWS OF 2nd May 2018.
FX News Today
Asia Wrap: Many markets reopened after yesterday’s holidays, but there was little momentum on the only day this week that all Asian markets trade. The Hang Seng underperformed with a -0.65% loss, the CSI 300 is little changed and Nikkei and Topix down -0.23% and -0.17% respectively, as the yen picked up slightly against the dollar. Long yields climbed higher across Asia with the 10-year JGB yield up 0.9bp at 0.037%. 10-year Treasury yields are up 1.3 bp at 2.976%. oil pries are slightly higher and the front end USOil future is trading at USD 67.53 per barrel. Earnings reports remain in focus, Japan consumer confidence declined, while China’s Caixin Manufacturing PMI inched marginally higher.
European Outlook: Bund yields are higher in opening trade, with the 10-year up 1.4 bp at 0.569%, the 2-year unchanged at -0.599%, leaving the curve steeper, as European stock futures move higher. The uptick in Bund yields comes alongside a 1.3 bp rise in 10-year Treasury yields, which continue to hold below the 3% mark. Yields also moved up across Asia. U.S. stock futures are mixed, with the NASDAQ outperforming, after a lacklustre session in Asia. Eurozone peripherals are outperforming ahead of preliminary Q1 GDP data out of the Eurozone, which is expected to show a clear slowdown in growth momentum and together with the mixed April confidence readings should at least push out the rate hike trajectory for next year, even if it is unlikely to prevent the ECB from phasing out QE by the end of the year. The data calendar also includes the U.K. construction PMI and a German 4-year Bobl sale.
Charts of the Day
Main Macro Events Today
* FOMC Meeting – No policy changes are expected, and since there is no press conference nor updated dots or economic projections. Expect the Fed to largely reiterate the March statement that the economy is expanding moderately, with strong job gains, albeit with some slowing in household and business investment. The Fed may show a little more confidence in reaching the 2% inflation goal given the updraft in various price reports, which would be consistent with expectations for a 25 bp June tightening.
* EUR Manufacturing PMI – Expectations – inline at 56.0 no change from last time.
* Speech from head of the BUBA (and still potentila new head of the ECB) –Weidmann
* EUR GDP – Expectations – Q1 GDP is expected to slow to a 0.4% rate of growth , after the 0.6% Q4 number, with a slow down in YoY number to 2.5% fro Q4 down from 2.7% in Q4. Poor weather, a series of strikes, an early Easter and possibility of an accelerated slow down all swirling around this key release.
Support & Resistance Levels
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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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