10 April. Morning Daily Market Updates

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Headlines International
Egyptian President Abdel-Fattah El-Sisi declared a three-month state of emergency and created a powerful new anti-terrorism body after Palm Sunday church bombings claimed by Islamic State left at least 43 dead
US Non-farm Payrolls rose by 98,000 followed by 219,000 rise in February that was less than previously estimated; median forecast was for 180,000 according to Bloomberg. Unemployment rate fell to 4.5% from 4.7% and wage gains slowed to a 2.7% year-over-year pace
International Monetary Fund to lift Japan’s GDP growth forecast to low 1% from 0.8% in its World Economic Outlook report, NHK reports, citing unidentified official. IMF is also to lift U.K. GDP growth rate to ~2% from 1.5%; says impact of Brexit decision is not apparent yet
In a tweet after the visit, Trump said it was a great honour to host President Xi Jinping and his wife Peng Liyuan, while adding: Tremendous goodwill and friendship was formed, but only time will tell on trade”. The hard part though is to find common ground quickly on a host of economic and security issues before they risk leading to a trade war or military conflict that derails the relationship. Perhaps none is more urgent than curbing North Korea’s nuclear threat, underscored by Trump’s move to launch missiles on Syria while he dined with Xi.
French presidential candidates Jean-Luc Melenchon andFrancois Fillon are rallying supporters on Sunday as polls suggest they are almost tied for third place with two weeks of campaigning left.
U.K. consumers, touted by Mark Carney as a key to the economy’s performance, may find the squeeze on their pockets gets a little tighter this week. While inflation’s acceleration probably paused in March partly due to the timing of Easter, another weakening in wage growth means pay is not keeping pace with price increases. That’s all going to feed into household spending habits in 2017.
Market in details
FX:
Financial markets showed resilience in the face of weaker-than-forecast hiring in the world’s largest economy and a ratcheting up of geopolitical tensions, with demand for haven assets abating.
US Dollar advanced with Treasury yields as investors looked past a U.S. military strike in Syria and worse-than-forecast hiring data.
The Australian dollar had fallen to near a three-month low, below US75c, over the weekend in the wake of a plunge in the price of iron ore and a rebound in the greenback.
The Aussie was trading at US74.92 at about 8am AEST on Saturday. The currency last traded with a US74c handle in mid January. The currency’s year-to-date appreciation now stands at 4.1 per cent. It peaked most recently at US77.31 on March 20.
The Bloomberg Dollar Spot Index advanced 0.3 percent, rebounding from earlier losses as it heads for a weekly advance of 0.6 percent.
The ruble dropped 1.5 percent. The currency has been trading near the highest since July 2015. President Vladimir Putin believes the U.S. airstrikes caused “considerable damage” to relations with Russia, a Kremlin spokesman said.
The yen weakened 0.4 percent to 111.198 after erasing gains of as much as 0.6 percent.
The euro slipped 0.3 percent, the British pound dropped 0.6 percent.
South Africa’s rand touched the weakest level this year after Fitch Ratings became the second company to cut the country’s credit assessment to junk. It traded at 13.809 per dollar, lower by 0.4 percent.
Rates:
Australian sovereign bonds drop on the open matching similar moves in Treasuries on comments from Fed’s Dudley downplaying the length of any pause in short-term rate normalization by the central bank.
US Treasury yields rose led by the five-year after New York Federal Reserve President William Dudley downplayed the length of any pause in short-term rate normalization by the central bank when it starts to shrink its balance sheet. U.S. 10Y yield widened 4.1 bps to 2.38%
Equities:
S&P 500 down less than 0.1% to 2,355.54 at 4pm, rebounding from an earlier drop of 0.7%
Dow Industrials little changed at 20,656.10
Commodities:
Gold spot up 0.3% to $1,254.30
WTI Futures up 1% to 52.24
Benchmark iron ore declines 6.8% to $75.45/MT as supply continues to outstrip demand amid tightening credit conditions
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