European FX Outlook: No major macro data on the horizon

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.