Market Update – April 8 – USD Remains at lows
Market News Today – US Equities closed flat, USD (new 2-week lows) and 10-yr yields cool further. FED mins. supported lower for longer mantra, benign inflation concerns and no scaling back of support until recovery is clear. US Trade deficit at record, increasing by 4.8%, Biden offered to negotiate on 28% corporate tax rate proposals (25%?). Overnight – Nikkei closed down 0.07%, UK houses prices climbed, JPY Consumer confidence up significantly and German factory orders inline. Gold holds 1740 and Oil inventories fell more than expected, USOil trades at $59.20. Beijing now has more billionaires than any where else and bitcoin mining in the country could consume more energy than Italy by 2024.
Still to come this Week – ECB Minutes, Weekly Claims & Powell speech (8th), CAD Jobs & US PPI (9th).
European stock markets are broadly higher in early trades, with GER30, UK100 and the Euro Stoxx all up 0.4%. US futures are also sought after the S&P already reached another record high yesterday, and the USA500 breached 4,100 for the first time earlier today. Central banks remain eager to keep reflation fears under control and calm concern that they may be forced to rein in stimulus earlier than currently expected. However, while central bank buying will keep markets underpinned, there is increasingly also the risk of bubbles (housing is of particular concern in many jurisdictions) that could have costly consequences if and when they burst.
Today – ECB minutes, US Weekly Claims, BoE’s Haldane, Fed’s Bullard, Powell, Kashkari.
Biggest (FX) Mover @ (07:30 GMT) AUDUSD (+0.30%) rallied from a test of 0.7600 yesterday over S1 and has moved higher today. Over 200hr MA to test PP at 0.7640. MAs remain aligned higher, RSI 53 but still rising, MACD histogram & signal line aligned higher but remain under 0 line from early yesterday. Stochs. in OB zone and cooling. H1 ATR 0.0009, Daily ATR 0.0064.
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Comments are closed