A quiet Asian-affair, as dust settled over the FOMC minutes aftermath, while risk-on moods persisted amid higher stocks and oil prices. The greenback extended the overnight sell-off versus its main peers, as shorter-duration treasury yields remained sold-off into cautious FOMC minutes. As a result, most major currencies extended the rebound, although upside lacked follow-through amid increased nervousness ahead of the OPEC meeting scheduled later today.
Looking ahead, most major European markets are closed in observance of Ascension Day, and hence thin liquidity and irregular volatility will persist. Calendar-wise, the second estimate of Q1 UK GDP will be reported alongside prelim business investment data. Meanwhile, in the NA session, the US usual weekly jobless claims, good trade balance and FOCM member Brainard’s speech will remain in focus. However, the main market moving event for today remains the OPEC Vienna meeting on oil output cut deal extension.
Main topics in Asia
Fed’s Kaplan: Should unwind balance sheet in a way that minimises impact
Comments from Fed’s Kaplan crossing the wires via Bloomberg and Reuters – The Fed should unwind the balance sheet in a way that minimises impact.
Fed's Evans - below target US inflation is "a series policy outcome miss"
Chicago Fed President Charles Evans, while speaking in Tokyo, said the below-target US inflation is "a serious policy outcome miss".
NZ Budget: Govt expects a bigger-than forecast budget surplus in 2017
New Zealand (NZ) Treasury is out with the Annual Budget release, outlining the government's budget for the year, presented in parliament by the finance minister.
BOJ’s Sakurai: Main priority is to control yields
Bank of Japan (BOJ) board member Makoto Sakurai is back on wires now, via Reuters, noting the following:
Key Focus ahead
GBP/USD: Bulls eyeing a test of 1.3000 ahead of UK GDP
The overnight recovery in GBP/USD found extra legs in mid-Asia, now pushing the rate further towards 1.30 handle.
OPEC preview: Will oil prices rise above $60/barrel?
Oil prices traded on the front foot in Asia on expectations the major oil producers will extend the output cut deal.
Loonie Poised to Bounce Back as the Week Closes
The Loonie has been under fire recently but things could be about to improve for the embattled pair in the session to come.
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