Macro Events & News

Dr. Nektarios Michail HFM

FX News Today

10-year Treasury yields are down -0.5 bp at 2.690% but JGB yields are up 1.3 bp at -0.016%, despite a -0.59% decline in the Nikkei and a 0.83% drop in the Topix amid another mixed session in Asia.

Japanese shares were hit by corporate earnings, while the ASX continued to rally, gaining 1.10%, in tandem with local bonds after the dovish shift at the RBA this week.

The RBI meanwhile surprised with a cut in the repo rate by a quarter point. Hong Kong and China remained closed and despite some movement, investors continue to hold back ahead of the next round of US-Sino trade talks next week.

US futures are heading south despite a cautiously upbeat assessment of the economy from Fed Chairman Powell, who said “the US economy is now in a good place”.

The front end WTI future managed a session high of USD 54.04 before falling back to USD 53.79 per barrel.

Charts of the Day

Main Macro Events Today

Theresa May meetings in Brussels – Theresa May and European Commission’s president will meet today, with the UK PM hoping to obtain fresh concessions, despite the EU’s insistence that it will not renegotiate the Brexit deal. In late afternoon, May is also expected to meet with Donald Tusk, the European Council President.

BoE Interest Rate Decision – BoE is not expected to bring forth any changes to its interest rate policy ahead of a Brexit agreement and thus the rate is expected to remain at 0.75%.

BoE Carney Speech – Mark Carney is expected to speak along with other MPC members about the BoE inflation report.

Fed Clarida Speech – FOMC Member, Richard Clarida is due to speak at the Czech National Bank’s conference about the neutral interest rate, with audience questions expected.

Support and Resistance

Author

Dr. Nektarios Michail

HFM

With more than 4 years of experience at the Central Bank of Cyprus where he obtained hands-on experience with real-life economics, Dr Nektarios Michail is a supporter of a balanced approach between science and art when it comes to

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold retakes $4,100 as weak US bond yields and USD support ahead of US NFP

Gold attracts dip-buyers during the Asian session on Friday, stalling the previous day’s pullback from a two-week high. The recent fall in US bond yields undermines the US Dollar amid hopes for Iran diplomacy, supporting the bullion. However, a higher-rate environment warrants caution for XAU/USD bulls as focus remains on the crucial US NFP report.

Ethereum falls 7% as AI sell-off hits crypto

Ethereum falls 7% to $2,230 on Thursday as AI stock sell-offs spilled into the crypto market. The top altcoin's decline wiped out all of Wednesday's post-US midterm gains, triggering $181.8 million in ETH liquidations over the past 24 hours. Long liquidations dominated, totaling $149.7 million, according to Coinglass data.

Neither the election nor the US Dollar: Why Friday's payrolls hold the key to Gold's next move

Gold has climbed back above $4,000 as the US Dollar weakened following a Democratic sweep in the US midterm elections. However, with every Gold rally facing heavy selling throughout the year, investors are looking to Friday's Nonfarm Payrolls report to determine whether this move marks a sustainable breakout or just another temporary rebound.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.