EU leaders also discussed the Iran nuclear deal

Danske Research Team Danske Bank A/S

Market movers today

There are no global key figures of interest today. Focus will continue to be on the political situation in Italy (where bond yield spreads are now wider than before the election) and on news coming out from the trade negot iat ions between China and US in Washington.
The development in US 10-year yields and oil prices also continues to be in focus.

Selected market news

EU leaders are in Bulgaria to extend their links with partners during the EU-Western Balkans summit . The EU leaders also discussed the Iran nuclear deal, agreeing unanimously that the EU will stay in the agreement as long as Iran remains fully committed to it .

The trade with the US was also discussed. Today, the European Commission is expected to introduce a blocking statute to protect European companies doing business with Iran from the possible US sanctions. Previously, the US Treasury Department announced that companies doing business in Iran will have 90 to 180 days to cease their active contracts before facing US penalt ies.

The EU also promised to suspend t rade negot iat ions with the US unt il the EU members receive total exemption from steel and aluminium tariffs by the US.

US stocks slid and the USD strengthened as US President Donald Trump said yesterday that he doubts the US and China could agree over their foreign t rade. The world's two biggest economies have restarted negot iat ions over t rade tariffs in Washington. Trump called China and the EU ‘very spoiled'. T he negot iat ions are cont inuing t oday.

While the Brent oil price rose to USD80/bbl for the first time almost in four years, commodity exporters in the EM universe weakened together with several other EM peers on the strengthened USD and US 10-year Treasury yields hitting 3.1% for the first time in seven years.

Download The Full Daily FX Market Commentary

Author

Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.