Today's Highlights
BOC and ECB on hold
Aussie unemployment improves unexpectedly
FX Market Overview
The US Federal Reserve published their Beige Book yesterday. It painted a positive picture of modest growth in the US economy but there were some worrying signs. The strength of the US Dollar is a concern for exporters, as is the fall in energy prices for the related industries.
The Bank of Canada and the European Central Bank both left their base rates on hold at 0.75% and 0.05% respectively but the Bank of Canada didn't have to contend with a protester leaping onto the desk in front of Mario Draghi and throwing a fistful of flyers into the air. The protestor who is reported to be Josephine Witt, wore a shirt emblazoned with the words, "End the ECB Dick-Tatorship". It's a great video clip if you get a chance to see it because she is smiling all the way through. I love a happy protest don't you.
We heard overnight that Australian employment improved by a larger than expected 37,700 new jobs in March. That was unexpected and is at odds with the general concern over the strength of the Australian economy; a concern that is prompting calls for interest rate cuts. The Aussie Dollar strengthened on the news. Today's data diary is pretty well empty for the morning session but we do get some US housing data later on and a slurry of Federal Reserve Speakers. This is likely to be in line wityhe the comments in the Beige Book so we aren't expecting huge volatility.
I will leave you with the story of Mark Drayton, the Governor of Minnesota. He has issued an executive order to restore the umlauts to signs for Lindström. These were removed by a state directive on signage but locals have criticised the move; saying it detracts from Lindström's nickname of 'Little Sweden'. I wonder if this will continue and whether Americans will start reintroducing the 'u' into Labour and Colour or the 's' to the end of Maths. Maybe that's a step too far. Maybe umlauts are baby steps.
Quote
"Election season is heating up. We're starting to hear who's running for president in 2016. Hillary Clinton is expected to launch her 2016 campaign sometime in the next two weeks. So remember, act surprised."
Seth Meyers
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
AUD/USD gains ground on hawkish RBA, Nonfarm Payrolls awaited
The Australian Dollar continues its winning streak for the third successive session on Friday. The hawkish sentiment surrounding the Reserve Bank of Australia bolsters the strength of the Aussie Dollar, consequently, underpinning the AUD/USD pair.
USD/JPY: Japanese Yen advances to nearly three-week high against USD ahead of US NFP
The Japanese Yen continues to draw support from speculated government intervention. The post-FOMC USD selling turns out to be another factor weighing on the USD/JPY pair. Investors now look forward to the crucial US NFP report for a fresh directional impetus.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
Solana price pumps 7% as SOL-based POPCAT hits new ATH
Solana price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.