|Day's range||6,085.20 - 6,114.90|
|52-week range||5,639.40 - 6,150.00|
Is the trade war on? Following China’s response to the U.S tariffs on China exports to the U.S, it could get ugly, with Trump’s first tweet of the week likely to have a material bearing of risk sentiment through the week.
The markets were mixed through the early part of the day, the introduction of tariffs having a mixed impact on the markets, with the Yen finding little support ahead of what will likely be a noisy day ahead for the Oval Office.
It’s a busy time for the markets, with focus shifting to today’s inflation figures out of the UK and the ECB Press Conference later today, positioning coming in the wake of FED rate hike on Wednesday.
While there’s plenty of chatter on trade, Brexit, Italy and North Korea, focus will be on the FED later in the day, a rate hike largely priced in, with inflation numbers out of the UK also there to provide direction for the GBP.
Following some weak stats out of the Eurozone, the EUR maintained its position through the morning, on expectations of a hawkish ECB, with today’s inflation numbers likely to hit the Dollar should they impress.
It’s all about the G7 and the Dollar and the Yen are the beneficiaries of the market’s caution as Trump looks to take center stage once more.
With a shift in sentiment towards monetary policy in both the Eurozone and the UK, it’s all about the G7 today with trade war jitters likely to resurface, the markets having few material stats to consider through the day.
The Australian economy saw a sharp pickup in the 1st quarter, supported by commodities exports, with the markets now having to consider upbeat economic data and the continued threat of a trade war ahead of Friday’s G7.
Geo-political risk eases in Europe leaving the markets focused on the Oval Office and Beijing as the prospects of a trade war begin to loom large.
Another testing day for the markets, with trade tariff retaliations and a vote of no confidence in Spain grabbing the headlines ahead of NFP and wage growth figures out of the U.S and trade talks over the weekend.
Easing concerns over Italy and upbeat economic data out of China supported risk appetite early, pulling the Dollar into the red, ahead of today’s inflation numbers out of the U.S, with the Oval Office chatter on trade also there.
The Asian markets recoiled again this morning, as Trump added to investor woes, leaving today’s economic data as an afterthought as focus moves on to Italy, the Oval Office and the Bank of Canada.
Geo-politics will continue to be the centre of attention today, with noise from both Italy and Spain to weigh on the EUR, while the markets also look towards the Oval Office for updates on the Summit and on trade tariffs.
The go ahead for the U.S North Korea Summit saw U.S Treasury yields ease, with the risk on sentiment pinning back the U.S Dollar with the politics to take center stage through the European session.
With inflation continuing to be a problem for the BoJ, BoE Governor Carney and FED Chair Powell are scheduled to speak through the day, monetary policy divergence becoming every more evident in the markets at present.
The FOMC minutes may have eased demand for the Dollar, but with UK retail sales figures, Carney and the ECB’s monetary policy minutes in focus today, it could all swing back in the Dollar’s favor.
It’s a busy day in the markets, with geo-political risk gripping ahead of a busy economic calendar, Eurozone and U.S PMI numbers, UK Inflation figures and the FOMC monetary policy meeting minutes all due out today.
A quiet day on the economic data front leaves the markets to consider what lies ahead, while BoE Governor Carney could catch the markets napping this morning should he deliver a surprise on the policy front.
The Dollar’s on the move early, with weekend updates on trade talks with China supporting risk appetite through the early part of the morning. A lack of stats through the day will keep focus on the FED and the Oval Office.
Japanese inflation softer again, with economic data on the lighter side leaving the markets to focus FOMC member commentary and any noise from the Oval Office on trade talks through the week.
The Dollar was on the back foot early, while the Pound made a move on news of the UK government planning to announce a willingness to remain within the EU customs union beyond 2021, a concession that may lead to others…
Economic data out of Japan and Australia disappointed early as the markets now look ahead to the EUR, with inflation figures and Draghi to direct the EUR ahead of the U.S session.
China was one of the top stories overnight, as Moody’s released their analysis on the China/US trade war.
The Dollar was on the move early this morning ahead of what’s a particularly busy day on the data front, with the markets also focusing on NAFTA progress and talks between the U.S and China on trade later today.