Good Morning All;
we’ll see now the daily darkets in detail
The Bloomberg USD index was nursing slight losses in a subdued trading session as focus shifted away from the greenback, with markets seeking fresh drivers as position rebalancing after the French presidential vote appears to have run its course. The decision by President Trump to fire the FBI director Tuesday had no immediate FX impact as traders tried to assess the implications for fresh fiscal stimulus and the rest of the president’s agenda. With the Fed in a self-described data-dependent mode, traders will parse this week’s inflation reports for impact on the timing of the next rate hike, with markets assigning a high probability of a June increase; Boston Fed President Rosengren said three rate increases over the rest of the year is “reasonable” if forecasts hold, and policy makers should consider shrinking the central bank’s $4.5t portfolio after one more hike; Rosengren voted on FOMC in 2016 and doesn’t vote again until 2019
AUD/USD falls on fresh cross selling, the latter of which spiked after a dovish monetary policy statement from the RBNZ released with the decision to leave rates unchanged.
NZD/USD declined after the nation’s central bank said inflation will slow; The kiwi fell 1.3 percent to 68.51 U.S. cents, the biggest slide since Donald Trump’s election victory in November.
EUR/USD fell back to near its low of the session in recent trading, dropping to 1.0865 after holding near 1.0880, allowing the USD to pare losses slightly; flows were described as light in the drop. Bids are positioned under 1.0850 and extend to 1.0800 and are likely to cushion the move, traders in Europe and London said. EUR selling was seen from model-driven funds earlier, with some of that tied to EUR/GBP. Traders continue to be wary of the EUR as it approaches the 1.0820 area that was the opening level after the first round of French presidential voting.
USD/JPY is trading at a fresh high above 114, extending a rebound from its overnight low near 113.60; the yen fell amid demand for GBP/JPY early in the day after gaining in the wake of bellicose remarks from North Korea. The yen has remained on the defensive as Bank of Japan Governor Kuroda reiterated that the bank will continue stimulus amid subdued inflation pressures. Offers to sell USD/JPY are positioned above 114.10/15, helping to cap USD gains overnight, while bids are in place under 113.60, traders said.
GBP/USD rose to its highest vs the USD since September, trading to 1.2988 before dropping to a new session low in recent trading; early demand for GBP/JPY fueled the rise to near 1.3000 before offers capped the pair, said foreign-exchange traders familiar with the transactions who asked not to be identified because they are not authorized to speak publicly. The Bank of England is expected to keep rates and policies on hold Thursday; focus may be on the vote count after the committee voted 8-1 in March in favor of keeping rates steady even as the U.K. sees a pickup in inflation.
The yield on U.S 10-year Treasury notes rose one basis point to 2.41 percent after a soft auction of the notes. U.S. 10Y auction, which drew a yield of 2.40% vs 2.332% at the prior refunding; Treasury futures knocked to session lows after soft auction showed a sizable tail; raises concerns yields will continue to rise into Thursday’s 30Y auction, especially following the disappointing 3Y on Tuesday
EGB curve bull flattened, driven by large gains in long- dated France and Belgium, in the absence of any syndication announcement, which added to early flight- to-quality bid driven by Treasuries
The S&P 500 rose 0.1%; Dow Jones down 0.2% to 20,943.11; Nasdaq up 0.1% to 6,129.14; The S&P 500 Index edged higher to claim a second closing record this week, as markets looked past President Donald Trump’s firing of FBI Director James Comey.
Stoxx Europe 600 Index rose 0.2%, buoyed by oil sector; CAC 40 and DAX inch up less than 0.1%; FTSE 100 up 0.6% at 7,385.24
Nikkei 225 futures rose 0.2 percent in Singapore trading. Contracts on Australia’s S&P/ASX 200 Index gained 0.2 percent and those on the Hang Seng Index added 0.4 percent.
West Texas oil jumped 3.4% to settle at $47.42 a barrel Wednesday, resuming gains after dropping 1.2 percent on Tuesday.
Gold -0.2% to $1,219/oz (range $1,218-$1,226)
Copper -0.2% to $5,501/mt