American FX Outlook: The US Dollar retreats lower as Treasury yields stall
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What you need to know before markets open
- The US Treasury yields pushed higher towards 3.0% level on Monday supporting the US Dollar, but the move got exhausted on Tuesday with yields stabilizing at around 2.96%.
- The headline German IFO business climate indicator retreated lower in April falling below market expectations.
- The US house prices and the new home sales are considered a rather second tier macroeconomic indicators that are unlikely to move the market.
Tuesday’s market moving events
- The US S&P/Case Shiller house price index is expected to rise 6.3% y/y in February.
- The US news home sales are seen rising 1.9% m/m in March to 630K up from 618 K in the previous month.
Major market movers
- The US Dollar retreated lower on Tuesday as the US Treasury yields stall at around 2.96%
- With the lack of macro drivers, the corrective market sentiment prevails on the currency market.
Earlier in Asia/Europe
- The Australian CPI increased 0.5% Q/Q while increasing 2.0% y/y in Q1 2018, in line with expectations.
- The Bank of Japan measure of inflation increased 0.7% y/y in March.
- Swiss trade balance reached a surplus of CHF 6.5 billion in Q1 2018, down from 8.2 in Q4 2017.
- German IFO business climate indicator decelerated above expectations to 102.1 in April from 103.3 in March after the pool of surveyed companies was increased to 9,000 including services.
- The UK public sector net borrowing decreased by £ 260 million in March, the lowest March net borrowing since 2004.
- The UK CBI industrial trends remained stable at 4% in April.
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