US employment numbers will once again take the spotlight on Wednesday, giving investors the latest on the world’s largest economy. Beyond that, this 4 April Market Moving Fundamental Events reveals other events driving the markets today. Read On!
4 April, HotForex – 10-year Bund yields are up 0.3 bp at 0.501% in opening trade, still outperforming Treasuries and JGBs, which are up 0.4 bp and 0.6 bp at 2.779% and 0.021% respectively.
Stock markets meanwhile fluctuated in Asia after a positive close on Wall Street, with trade tensions coming back to haunt investors.Nikkei and Topix are up 0.24% and 0.21% respectively, but trade jitters continue to hang over markets as investors await China’s response in the latest escalation of the trade tensions with the U.S. U.K. stock futures are heading south, in tandem with U.S. futures and as the pound strengthens.
European Market Outlook
GER30 and FRA40 futures meanwhile posted slight gains in opening trade. Oil prices are down and the front end WTI future is trading at USD 63.29 per barrel. Today’s calendar focuses on the preliminary reading of March HICP inflation, seen accelerating to 1.4% y/y from 1.1%. The U.K. Construction PMI, as well as a German 5-year Bond auction, are also due.
The major pairings have posted limited ranges so far today. The yen saw some current weakness in early Asian trade, while the Aussie dollar rallied moderately on strong retail sales data out of Australia. EURUSD chopped around in the upper 1.2200s, dipping toward 1.2270 in the latest phase. Yesterday’s two-week low is at 1.2253. AUDUSD clocked an eight-day high of 0.7717 before ebbing back under 0.7700.
USDJPY edged out a six-day high of 106.65 in early Tokyo and has since remained buoyant. The rebound on Wall Street yesterday initially aided the yen lower before a less specific tone in Asian stock markets, along with declines in U.S. equity index futures, seemed to halt the yen’s downside progress. The early salvos of what looks to be shaping up to be a US-Sino trade war remains a concern for investors.
Beijing will reportedly be detailing its tariffs on U.S. imports later. In data, Japan’s March services PMI fell to a 50.9 reading, down from 51.7 in the previous month, and the composite PMI worked out at 51.3, down from 52.2 in February. Australian retail sales rose 0.6% m/m in February, double the median forecast while building approvals came in near to expectations at -6.2% m/m. China’s Caixin March composite PMI sank to 51.8 from February’s 53.3.
Main Macro 4 April Market Moving Fundamental Events
- UK Construction PMI – expected to ebb to a 51.0 reading after 51.4 in the month prior.
- EU CPI & Unemployment Rate – acceleration in the headline inflation rate is expected up to 1.4% y/y from 1.1% y/y in the previous month, with a slight risk to the upside after higher than anticipated Italian and French numbers.Unemployment Rate expected to slow down a bit at 8.5% from 8.6% last month.
- ADP Non-Farm Employment Change – should drop to 208K from February’s 235K.
- ISM Non-Manufacturing PMI – is seen declining to 59.0 after the 59.5 in March and the jump to 59.9 in February.
- Crude Oil Inventories
Support and Resistance level
This article about 4 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 an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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