US #stockmarkets closed mixed – Industrials higher – Tech lower (#Samsung said they will cut chip production – lifting Western Digital & Micron +8%). USD continued to recover, (USDIndex topped at 102.50), Treasuries slipped again (10 yr 3.41%) and #BTC breached $30k for the first time in 10mths. In the Asian session stocks are higher (ASX +1.3% after Easter break & Nikkei +1.4% after a Dovish outlook from new BOJ Governor Ueda & Buffet said he was planning to add to his Japanese investments. AUD is outperforming.
Overnight Data Chinese #CPI cooled to 0.7% from 1.0% and missed expectations, and #PPI fell further remaining significantly deflationary at -2.5% from -1.4%
- FX – USDIndex rallied to 102.50 yesterday and hold at 102.00 today. EUR tested down to 1.0850 but is back to test 1.0900 today. JPY breached 133.00 yesterday & rallied to 133.88 as BOJ Governor Ueda, confirmed there will be no immediate policy change from the BOJ. Sterling’s decline from the key 1.2500 stalled at 1.2350 and now trades back at 1.2400 today.
- Stocks – US markets closed mixed (+0.30% to -0.03%) after a very weak open. #US500 closed at 4109 – US500 FUTS are higher today at 4140. Q1 Earnings Season kicks off with the big Wall Street Banks on Friday & FRC today.
- Commodities – USOil – Futures tested under the key $80.00 level but holds at $80.50 now. Gold – tests the vital $2000, level again today having been as low as $1982, yesterday.
- Cryptocurrencies – BTC rallied over 8% from the $28k level and breached $30k earlier today spiking to $30.7k on speculation that interest rates may have peaked. Additionally, a major revamp to the Ethereum ($1.917k) blockchain is due this week “that is set to allow them to gain access to more than $33 billion of ether currency. Dubbed Shapella, the software upgrade will let market players redeem their “staked ether” – coins they have deposited and locked up on the network over the past three years in return for interest.” – Reuters
Today – EZ Retail Sales and Sentix Index, EIA STEO, speeches from Fed’s Goolsbee & Harker. IMF Meetings Continue. Earnings – First Republic (#FRC), which was hit hard by client withdrawals in the aftermath of Silicon Valley Bank’s collapse.
Biggest FX Mover @ (07:00 GMT) AUDUSD (+0.46%). Rallied from under 0.6620 yesterday to test 0.6680 today. MAs aligned higher, MACD histogram & signal line positive & rising, RSI 61.00 & rising, H1 ATR 0.00092, Daily ATR 0.00701.
Click here to access our Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. 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 buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.