FX News Today
- 10-year Treasury yields are down 0.5 bp at 2.690% but JGB yields are up 1.3 bp at -0.016%, despite a 0.59% decline in the Nikkei and a 0.83% drop in the Topix amid another mixed session in Asia.
- Japanese shares were hit by corporate earnings, while the ASX continued to rally, gaining 1.10%, in tandem with local bonds after the dovish shift at the RBA this week.
- The RBI meanwhile surprised with a cut in the repo rate by a quarter point. Hong Kong and China remained closed and despite some movement, investors continue to hold back ahead of the next round of US-Sino trade talks next week.
- US futures are heading south despite a cautiously upbeat assessment of the economy from Fed Chairman Powell, who said “the US economy is now in a good place”.
- The front end WTI future managed a session high of USD 54.04 before falling back to USD 53.79 per barrel.
Charts of the Day
Main Macro Events Today
- Theresa May meetings in Brussels – Theresa May and the European Commission’s president will meet today, with the UK PM hoping to obtain fresh concessions, despite the EU’s insistence that it will not renegotiate the Brexit deal. In late afternoon, May is also expected to meet with Donald Tusk, the European Council President.
- BoE Interest Rate Decision – BoE is not expected to bring forth any changes to its interest rate policy ahead of a Brexit agreement and thus the rate is expected to remain at 0.75%.
- BoE Carney Speech – Mark Carney is expected to speak along with other MPC members about the BoE inflation report.
- Fed Clarida Speech – FOMC Member, Richard Clarida is due to speak at the Czech National Bank’s conference about the neutral interest rate, with audience questions expected.
Support and Resistance
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Dr Nektarios Michail
Market Analyst
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