Global Markets:
- Asian stock markets: Nikkei up 0.80 %, Shanghai Composite gained 0.40 %, Hang Seng rose 1.00 %, ASX 200 closed for holiday
- Commodities: Gold at $1275 (-0.20 %), Silver at $17.95 (+0.15 %), WTI Oil at $49.50 (+0.50 %), Brent Oil at $52.40 (+0.55 %)
- Rates: US 10-year yield at 2.28, UK 10-year yield at 1.05, German 10-year yield at 0.33
News & Data:
- Japan Services PPI (Mar): 0.80% (est 0.70%, prev 0.80%)
- Asia stocks rise, euro steady as relief from French vote buoys sentiment – RTRS
- Oil edges up after six days of straight losses – RTRS
- Euro pauses after rally, Canadian dollar hit by U.S. duties on lumber – RTRS
Markets Update:
Asian stock markets rose overnight, led by gains in the Nikkei. The outcome of the first round of the French election and US President Trump’s announcement regarding his tax reform have kept stocks bid. Australian and New Zealand markets were closed for a holiday.
In the currency market, the largest moves overnight were seen in the CAD pairs. The Canadian Dollar came under pressure after the US announced it will impose a tax on Canadian lumber imports. USD/CAD rallied to a high of 1.3560 and could approach 1.36 resistance soon. While the pair looks a bit overbought in the short-term, 1.36 is an important level. If it breaks above it, further gains towards 1.38 seem likely.
Price action in the other major pairs was rather quiet. EUR/USD and GBP/USD consolidated in tight ranges. USD/JPY rose slightly after the Tokyo open, underpinned by the rally in stock markets. AUD/USD traded 0.7550-70 in Asia, while the New Zealand Dollar came a bit under pressure. It fell from 0.7015 to a low of 0.6985.
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