6 March 2017  Daily Market Updates

datareport

 

Market in Details

FX:

  • The dollar fell Friday though remained on track for its third weekly gain in four after Federal Reserve Chair Janet Yellen all but sealed the deal on a March rate hike
  • EUR/USD rose to a fresh high for the session above 1.0600 in afternoon trading as Treasury yields dropped back from their highs of the day near 2.52%.
  • USD/JPY trading near 114.05, dropping back with Treasury yields after rising as high as 114.75 around Yellen’s speech
  • Leveraged funds lowered net JPY, EUR; GBP, MXN short positions in week ended Feb. 28, whilst increased net AUD long by 7,431 contracts to 52,569  CFTC data show
  • AUD/USD weakens 0.1% to 0.7587, pared losses for the week to 1% driven in part by Yellen explicitly stating in Q&A that the Fed outlook  “does not incorporate a fiscal boost and that three rate hikes appear to still be appropriate this year”

 

Rates:

  •  Fed funds futures show a 94% chance the Fed will raise rates this month, versus 40% at the end of last week
  • Australia’s sovereign bonds open lower in response to Janet Yellen’s comments on Friday suggesting the Fed will raise rates in March
  • Australia 3-year govt yield climbs 2bps to 2.019%; 10-year advances 3bps to 2.832%
  • US Treasuries were little changed in late trading Friday, recovering from session lows, after Federal Reserve Chair Janet Yellen reinforced expectations that the central bank will raise interest rates at policy maker’s next meeting on March 14-15

 

Equities:

  • U.S. stocks were little changed Friday as investors assessed Federal Reserve chair Janet Yellen’s intention to raise interest rates at the central bank’s March meeting.
  • The S&P/ASX 200 Index futures contract rose 0.4% Friday; futures relative to estimated fair value suggest an early gain of 0.2%
  •  Nikkei 225 Stock Average dropped 0.5 percent.

 

Commodities:

  • China proposed less aggressive cuts in coal capacity this year in its annual report to the national’s legislature, after beating a target last year, in a move that could lessen social costs as a shakeup of old-style rust-belt industries continues. Premier Li Keqiang targets cuts of more than 150 million tons of coal capacity and around 50 million tons of steel capacity this year, according to a government work report delivered to the Congress on Sunday.
  • Gold dropped as Rate odds wreak on precious metal. Bullion futures declined for a fourth straight session, capping the biggestweekly drop since November. Prices have fallen amid mounting expectations that the U.S. central bank will raise interest rates this month. Silver and platinum also had the worst week this year.
  • WTI climbs most in a week amid reports that Benghazi Defense Brigades captured Es Sider, Libya’s biggest oil port, on Friday
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