Mario Blascak, PhD
Independent Analyst
What you need to know before markets open
- The US benchmark Treasury yields rose above 3.00% for the first time since January 2014 boosting the US Dollar.
- US President Trump and French President Macron seek new measures on Iran as deadline looms.
- Non-eventful Wednesday ahead in Europe with US Treasury yields hovering around 3% level being the main market topic.
Wednesday’s market moving events
- French consumer confidence is expected to remain steady at 100 in April.
- Dutch member of the ECB Governing Council Klaas Knot speaks at the Bank of France conference entitled "Non-Bank Finance: Trends and Challenges" at 8:30 GMT, but due to communication policies no monetary policy hints are expected.
- IEA crude oil investories are due to fall -2.648 million barrels.
- The Bank of Canada Governor Stephen Poloz is due to testify along with Senior Deputy Governor Carolyn Wilkins before the Standing Senate Committee on Banking, Trade, and Commerce, in Ottawa at 20:15 GMT.
Major market movers
- The US Dollar was the major mover against the Japanese Yen rising as high as 109.20 with US Treasury yields jumping above 3% for short period of time.
- FX market trends are set to focus on the US Treasury yield curve with little data on the agenda.
Tuesday’s macro summary
- 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.
- The US S&P/Case Shiller house price index rose 6.8% y/y in February.
- The US news home sales are seen rising 4.0% m/m in March to 694K up from revised 667 K in the previous month.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: 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
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.