FX News Today

10-year Treasury yields are up 0.7 bp at 2.598% and JGB yields climbed 1.8 bp to -0.015%, as stock market sentiment got a boost from Chinese data releases that beat expectations.

Chinese GDP growth came in at 6.4% y/y, in the first quarter, unchanged from Q4, while production surged 8.5% y/y and retail sales 8.7% y/y.

Data were taken as a sign that the government’s stimulus measures are starting to take effect. While it may be too early to call the all clear on the world economy, together with signs that US-Sino trade talks are making progress, the data will go some way to bolster confidence, especially after positive surprises on credit and housing data last week.

The data underpinned Asian stock markets, as Topix and Nikkei posted gains of 0.29% and 0.27% respectively. The Hang Seng is up 0.01% and CSI 400 and Shanghai Comp gained 0.11% and 0.34%.

Broader Asian indices are at the highest level since last July, even as the ASX underperformed and closed with a loss of -0.35%, dragged down by the materials sector.

US futures are also posting broad gains and the front end WTI future moved up to now USD 64.50 per barrel.

Currencies

Charts of the Day

Chart

Technician’s Corner

EURUSD moved past 1.13 early today and has been moving towards the 1.1315 Resistance level. Key Resistance remains at 1.1320 while the Support at 1.1279 is still strong after being hit twice yesterday. Indicators support an upwards move.

GBPUSD has been moving downwards but unable to break through the psychological 1.30 level, fluctuating around the 1.3067-1.3026 levels. Indicators are giving mixed signals.

USDJPY found support again under the 112.00 mark, and continued to trade there yesterday, with the Japanese data releases causing only some volatility. Indicators are showing mixed signals.

XAUUSD is trading at lows, after breaking through the 1285 Support level. Gold appears unable to break through the 1275 level, with the MACD and Stochastics showing upwards signals.

Main Macro Events Today

UK RPI and CPI inflation (GBP, GMT 08:30) – Both the RPI and the CPI are expected to have declined in March, reaching 2.1% and 1.6% respectively, down from 2.5% and 1.9% respectively.

EU CPI inflation (EUR, GMT 09:00) – Both the core and the overall CPI inflation rates are expected to have remained at the same levels, at 0.8% and 1.4% respectively.

Canada CPI Inflation (CAD, GMT 12:30) – The BoC Core price index is expected to have remained at 1.3% y/y, while the overall CPI index is forecast to rise to 1.9% y/y in March compared to 1.5% in February.

Support and Resistance

 

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD: Snaps four-day winning run, but bull breakout still valid

EUR/USD fell 0.28 percent on Tuesday, engulfing Monday's high and low and ending the four-day winning streak. The currency pair however, defended the former resistance-turned-support of the 200-day MA.

EUR/USD News

GBP/USD retraces from 5-week high amid fewer fresh catalysts from UK

While renewed fears of no-deal Brexit and less dovish Fed speak dragged the GBP/USD pair back from a month’s high, the Cable trades little changed near 1.2690 during early Wednesday.

GBP/USD News

USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 

USD/JPY News

Conference Board Consumer Confidence: The China syndrome

The index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco.

Read more

Gold bulls target $1485/oz

Gold prices rallied in Asia but stalled and started to deteriorate in European markets into consolidation before a sell-off emerged on the back of less dovish than expected rhetoric from Fed speakers on New York.

Gold News

Majors

Cryptocurrencies

Signatures