A steady stream of economic data will flow through the financial markets on Thursday, with reports from the United Kingdom and the United States set to make headlines. What are some of these economic data? Find out in this 19 April Market Moving Fundamental Events Analysis.
19 April, HotForex – The global stock market stabilization continued in Asia and volatility is receding as optimism in the global growth outlook returns following a cautiously optimistic Beige Book from the Fed.Fed’s Beige Book said economic activity remained “modest” to “moderate” across all 12 Districts.
European Market Outlook
That’s pretty much been the characterization for several years, and those were the adverbs that described many sectors. Energy companies are underpinned by rising oil prices as inventory levels fall. 10-year Treasury yields meanwhile are up from earlier lows, but still down -0.4 bp on the day at 2.869%, while 10-year JGB yields rose 0.3 bp to 0.031%. Elsewhere in Asia, long yields are also higher as equity markets recover.
The Nikkei gained 0.23%, Hang Seng and CSI 300 rallied a further 1.3% and 1.1% amid rumours of state intervention in China. U.S. stock futures are also in the green, with NASDAQ futures outperforming. The WTI future is trading at USD 68.94 per barrel.Today’s data calendar has Eurozone current account and BoP data as well as U.K. retail sales numbers.
The dollar has been trading near net steady so far today, while yen weakness remained a theme. EURUSD has settled in the upper 1.2300s, holding below the three-week high seen earlier in the week at 1.2414. USDJPY edged out a three-session high at 107.51, EURJPY a two-month high, just above 133.00, while AUDJPY managed a to post a four-session peak.
The generally more risk positive backdrop has continued to weigh on the yen as residual safe haven premium unwinds and markets return focus to bullish fundamental arguments for USDJPY (specifically yield differentials, which have markedly gapped in the dollar’s favour this year).
Following the Trump-Abe meeting this week, Trump said he wants a bilateral trade deal with Japan, and there was reportedly no discussion of currency levels between the two leaders. On the trade front, China’s commerce ministry repeated today that it is prepared to respond to U.S. trade threats. The Australian dollar came under pressure following a miss in Australian employment data before quickly turning higher. AUDUSD lifted out of its 0.7773 low to post a five-week high at 0.7812.
Main Macro 19 April Market Moving Fundamental Events Analysis
- UK Retail sales – a 0.5% m/m decline anticipated in March, which will be payback for the strong 0.8% m/m gain in the month prior.
- US Unemployment Claims – expected to fall slightly at 230K from 233K reported last week.
- US Philly Fed Manufacturing Index – April’s Philly Fed index is expected to slip to 21.0 after falling 3.5 points to 22.3 in March.
- FOMC Brainard, UK’s MPC Cunliffe, Fed’s Quarles, & FOMC Mester Speak
This article about 19 April Market Moving Fundamental Events Analysis was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute independent investment research. Nothing in this communication contains investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.