Thursday 23rd April: European Open Briefing

Global Markets:

  • Asian stock markets: Nikkei up 1.15 %, Shanghai Composite gained 2.50 %, Hang Seng rose 0.30 %, ASX declined 0.50 %
  • Commodities: Gold at $1189 (-1.20 %), Silver at $15.78 (-1.40 %), WTI Oil at $56.80 (+0.35 %), Brent Oil at $62.82 (+1.20 %)
  • Rates: US 10 year yield at 1.959, UK 10 year yield at 1.706, German 10 year yield at 0.163

News & Data:

  • China HSBC Manufacturing PMI 49.2, Expected: 49.6, Previous: 49.6
  • South Korea GDP 0.8 % q/q, Expected: 0.7 %, Previous: 0.3 %
  • South Korea GDP 2.4 % y/y, Expected: 2.4 %, Previous: 2.7 %
  • Australia NAB Quarterly Business Confidence 0.0, Previous: 2.0
  • Japan Manufacturing PMI 49.7, Expected: 50.8, Previous: 50.3
  • RBNZ Deputy Governor McDermott: Monetary Policy To Remain Stimulatory
  • McDermott: Near-Zero Inflation Mostly Due To Trade
  • McDermott: RBNZ Not Considering Any Increase In Interest Rates At Present
  • McDermott: Weaker Demand, Prices Would Prompt Rate-Cut Consideration
  • McDermott: Inflation Outlook Requires Period Of Supportive Policy
  • McDermott: Rising Currency As Export Prices Fall `Is Unwelcome’
  • Bank of Japan Governor Kuroda: Letting BoJ’s JGB Holdings Mature Is 1 Possible Exit Step For QQE — BBG
  • Kuroda: Raising Rate On Excess Reserves A Possible Exit Step
  • Kuroda: Doesn’t See Excessive Optimism In Markets
  • China April flash HSBC PMI contracts to one-year low – RTRS
  • Asia weathers soft China survey on stimulus hopes – RTRS
  • China Stocks Swing as Kiwi, Metals Slide on PMI at 12-Month Low – BBG
  • Former BP chief says oil prices to soar – FT

Markets Update:

The New Zealand Dollar declined overnight after dovish comments from the RBNZ’s deputy governor McDermott. He warned that weaker demand and prices could prompt a rate cut consideration and that the NZD’s strength is unwelcome given the drop in export prices. NZD/USD fell from 0.7640 to a low at 0.7565, while AUD/NZD rallied above 1.02. There is a A$3.1 billion large option expiry today at 1.02, which is likely to keep price close to the level, especially in the NY session. While the Aussie Dollar had a rather mixed performance against the USD, it remained bid overall amid positive cross flows. Key intraday levels to watch are 0.7720 and 0.7705 to the downside and 0.7810 & 0.7845 to the topside.

The Euro weakened yesterday amid heavy cross flows. Banks reported large selling in EUR/GBP, which declined to fresh multi-week lows. EUR/USD is likely to find some support at 1.0685 and 1.0660, but overall sentiment remains negative. Meanwhile, the Pound strengthened after a more hawkish than expected MPC. GBP/USD has decent intraday support at 1.4980, while the next major hurdle to the topside now lies at 1.5150.

USD/JPY remains very choppy. The pair has broken above the 120 level overnight, but failed to sustain momentum and dropped back to 119.70. While there is a slight upside bias, it seems further consolidation is the more likely scenario, with fading the extremes the appropriate strategy.

Upcoming Events:

  • 07:00 BST – Swiss Trade Balance (CHF2.16bln)
  • 08:00 BST – French Manufacturing PMI (49.2)
  • 08:00 BST – French Services PMI (52.5)
  • 08:00 BST – Spanish Unemployment Rate (23.6 %)
  • 08:30 BST – German Manufacturing PMI (53.0)
  • 08:30 BST – German Services PMI (55.5)
  • 09:00 BST – Euro Zone Manufacturing PMI (52.6)
  • 09:00 BST – Euro Zone Services PMI (54.5)
  • 09:30 BST – UK Retail Sales (0.4 % m/m, 5.4 % y/y)
  • 09:30 BST – Hong Kong Unemployment Rate (3.3 %)
  • 13:30 BST – US Initial Jobless Claims (290k)
  • 14:45 BST – US Bloomberg Consumer Confidence
  • 14:45 BST – US Manufacturing PMI (55.5)
  • 15:00 BST – US New Home Sales (-5.4 % m/m, 513k)

The post Thursday 23rd April: European Open Briefing appeared first on .

Source:: Thursday 23rd April: European Open Briefing

Won't your trader friends like this?
IC Markets
About the Author
IC Markets is one of the world’s only True ECN forex brokers providing trading solutions for active day traders and scalpers as well as traders that are new to the forex market. IC Markets offers its clients cutting edge trading platforms, low latency connectivity and superior liquidity. IC Markets is revolutionizing on-line forex trading, on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals. Visit IC Markets Website [space height="20"] [social type="facebook"][/social] [social type="twitter"][/social] [social type="google-plus"][/social] [social type="youtube"][/social]

Related Posts

Leave a Reply