Global Markets:
- Asian stock markets: Nikkei up 0.35 %, Shanghai Composite rose 0.40 %, Hang Seng rallied 0.60 %, ASX 200 gained 0.05 %
- Commodities: Gold at $1258 (+0.45 %), Silver at $17.20 (+0.50 %), WTI Oil at $51.75 (+0.75 %), Brent Oil at $54.40 (+0.80 %)
- Rates: US 10-year yield at 2.26, UK 10-year yield at 0.40, German 10-year yield at 0.40
News & Data:
- Asian shares hit two-year high after Fed signals gradual tightening – RTRS
- Fed ties rate hike to economic rebound, sees balance sheet cuts in 2017 – RTRS
- Fed’s Evans sees serious policy miss on U.S. inflation – RTRS
- Oil prices rise in anticipation of extended OPEC-led production cut – RTRS
Markets Update:
The US Dollar came under pressure after the release of the FOMC meeting minutes. While a June rate hike still seems likely, the central bank was a bit cautious, and the outlook beyond is slightly more uncertain.
EUR/USD rose back above 1.12 and reached a high of 1.1245 in Asia. The pair is likely to retest resistance at 1.12700 soon. Stronger selling interest is noted ahead of 1.13.
USD/JPY rose along with equities, but reversed gains post-FOMC. The pair ran into solid demand below 111.50, and overall, the short-term outlook remains positive if the risk-on sentiment persists.
Commodity currencies strengthened in Asia. AUD/USD is back above 0.75, although it ran out of momentum again. Meanwhile, NZD/USD cleared a key resistance level at 0.7040, and USD/CAD fell below 1.34, supported by a rising oil price.
The main event today will be the OPEC meeting. It is expected that the organization will agree to extend their output cut by 9 months. Anything less would be a disappointment for the market and bring Oil prices under pressure.
Upcoming Events:
- 09:00 BST – RBA Assistant Governor Debelle speaks
- 09:30 BST – UK GDP
- 13:30 BST – US Initial Jobless Claims
- 15:00 BST – FOMC Member Brainard speaks
- 18:00 BST – ECB Member Constancio speaks
