What you need to know before markets open
- The US benchmark 10-year Treasury yields rose to 3.10% overnight boosting the US Dollar further.
- New Zealand government’s first Budget is projected to run operating surpluses with net core Crown debt expected to fall below 20% of GDP by 2022.
- Rumors of the UK staying in a customs union with EU after Brexit are helping Sterling to recover from recent selloff.
- Little-to-no macro data scheduled for Europe with the ECB Vice President Vítor Constâncio speech headlining the day.
- Weekly labor market statistics are due in the US together with several Fed speakers and the Bank of England chief economist Andrew Haldane speech.
Wednesday’s market moving events
- The Eurozone construction output is expected to fall -0.1% m/m in March.
- ECB Vice President Vítor Constâncio is delivering closing remarks at the Colloquium in his honor organized by the ECB in Frankfurt at 10:30 GMT.
- ECB Vice President Vítor Constâncio is due to speak at the third annual ECB macroprudential policy and research conference, organized by ECB in Frankfurt at 12:00 GMT.
- The US initial jobless claims are expected to reach 215K in the week ending May 11.
- Philadelphia Fed survey is seen decelerating to 21.0 in May.
- Minneapolis Federal Reserve Bank President Neel Kashkari is scheduled to participate in a moderated discussion with the executive director of the Minnesota Home Ownership Center at 14:45 GMT.
- The Bank of England chief economist Andrew Haldane is scheduled to deliver closing remarks at the Economic Statistics Centre of Excellence Conference on Economic Measurement, in London at 16:00 GMT.
- Dallas Federal Reserve Bank President Robert Kaplan is expected to participate in a moderated discussion at the Richardson Chamber of Commerce in Richardson, Texas at 17:30 GMT.
Major market movers
- The US benchmark Treasury yields jumped higher to 3.01% on Wednesday pushing the US Dollar to stronger levels.
- The US Dollar rose to new 2018 high of 1.1760 against EUR but retreated some 100 pips off highs on Thursday against GBP to 1.3560.
- The FX market is set for consolidation phase after the US Dollar rally.
Wednesday’s macro summary
- Australian wages price index rose 0.5% Q/Q in the March quarter this year, missing the market forecast of 0.6% increase.
- The Econfin-the Eurozone finance ministers summit-takes place in Brussels.
- German inflation remained unchanged over the month in April while rising 1.6% over the year. On the harmonized basis, German inflation fell -0.1% m/m while rising 1.4% y/y.
- The Eurozone core inflation rose 0.2% m/m while increasing 0.7% y/y in April in line with expectations.
- The US housing starts dropped -3.7% m/m to 1.287 million units in April while building permits fell -1.8% m/m to 1.336 million-unit rate, both missing sharply the market expectations.
- Canada’s manufacturing sales rose 1.4% m/m to $57.1 billion in March.
- The US industrial production rose 0.7% in April.
- The Bank of Canada Deputy Governor Lawrence Schembri said that uncertainty about US trade policy currently weighs on business investment and export growth in Canada.
- St. Louis Federal Reserve Bank President James Bullard said he would need to see upside surprises to support further rate hikes.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.