The USD has pulled back slightly to the 101.30 floor ahead of CPI today. Asian stock markets followed Wall Street lower, while European and US futures are posting modest gains as investors wait for key reports. Treasury & Bund yields are up after final German inflation data at the start of the session was confirmed at 7.6% y/y and showed that underlying inflation pressures remain too high. Coupled with hawkish comments from ECB officials, that is leaving the ECB on course to hike rates again in June. Oil prices are slightly lower at $73.03 per barrel.
First Citizens and Flagstar, which bought the remnants of Silicon Valley Bank and Signature Bank, reported record profits up to $80bn in Q1 despite the turmoil.
- FX – USDIndex was at 101.61, has currently pulled back to 101.30. EUR slightly higher at 1.0976. JPY up for a 4th day at 135.46. Sterling lifted to 1.2630 on EU open.
- Stocks – Wall Street was weaker on the day and closed with small losses. The US100 was down -0.63%, with the US500 down -0.46%, and the US30 off -0.17%. #Novavax +27.79% posted positive results from a trial of flu and COVID vaccines and says it’s cutting a quarter of its workforce. #AMC +5.43%, #Harmonic +20.03% after the maker of fiber-optic and other telecommunications systems topped Wall Street expectations for its quarterly earnings. #PayPal -12.73% as its 2023 GAAP EPS guidance, of about $3.42, was below the $3.46 predicted in a FactSet-compiled analyst view.
- Commodities – USOil – slightly lower at 73.11 after weekly inventories showed an increase in stockpiles ahead of inflation figures that will influence the Fed’s monetary policy. Gold – corrected to $2026.
- Cryptocurrencies – BTC hovering around 50-day SMA, i.e. $27200.
Today – US Inflation & Monthly Budget Statement.
Biggest FX Mover @ (06:30 GMT) USDZAR (+1%). Has breached the 18.83 level. MAs aligned higher, MACD histogram & signal line positive, RSI 85 & flattening, H1 ATR 0.03216 Daily ATR 0.2093.
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Andria Pichidi
Market Analyst
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