US #stockmarkets closed mixed again and Asian markets are flat ahead of US CPI print at 12:30 GMT today. USD has slipped again as EUR & AUD outperform. Treasuries recovered a tad (10-yr at 3.434%), #Gold hits $2,020 #USOil moves to $81.50 despite inventory build and #BTC holds onto $30k level. Fed’s Harker the “Fed may soon be done” and Goolsbee the Fed “needs to be careful about raising rates too aggressively in its efforts to tame inflation”, turned more Dovish. Kashkari remained Hawkish, “would be much worse for jobs if we failed to get inflation down”. CME Fed Futures still have a 69% chance of 25 bp interest rate hike in May. A hold from June ??
Overnight Data Japanese #PPI cooled to 7.2% from 8.3% but remains very elevated and #Machine Orders declined significantly (-4.5%) but not as badly as expected (-6.4%) from 9.5%.
- FX – USDIndex declined to 101.65 and remains anchored below 102.00 today. EUR holds over 1.0900 today and trades at 1.0925. JPY breached 134.00 today from a test back to 133.00 yesterday. Sterling holds over 1.2400 at 1.2425.
- Stocks – US markets closed mixed again with Tech underperforming (+0.29% to -0.43%). #US500 closed at 4109 – US500 FUTS are lower today at 4134 from 4150 yesterday. Q1 Earnings Season kicks off with the big Wall Street Banks on Friday. #CARMAX rose 7% following stronger results.
- Commodities – USOil – Futures tested $81.50 level today despite private API inventories showing weaker demand as a build for both gasoline and petroleum products was recorded. Official EIA inventories today. Gold – tests the $2020, level again today having been as low as $1998, yesterday.
- Cryptocurrencies – BTC holds the $30k level spiking to $30.5k earlier. Binance also suspended TRON & Spell as TRON founder Justin Sun was arrested in Hong Kong (also wanted in the US).
Today – US CPI, BoC Rate Decision, FOMC Minutes, speeches from ECB’s Lagarde and de Guindos, BoE’s Bailey (x2), Fed’s Barkin and Daly. Earnings – LVMH
Biggest FX Mover @ (06:30 GMT) EURJPY (+0.16%). Continued to rally from under 143.00 last week to test 146.35 today. MAs aligned higher, MACD histogram & signal line positive & rising, RSI 61.00 & rising, H1 ATR 0.187, Daily ATR 1.526.
Click here to access our Economic Calendar
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.