Today's focus is on econ releases, claims of currency devaluations, Brexit, and Syria
Scott Petruska, CFA |
April 16, 2018
Traders are faced with White House tweets of currency devaluations, while UK PM May explains decision to join in on Friday’s airstrikes. Light economic news coming out of Europe and Canada, while in Asia the yen rallies.
4/16: Retail Sales
4/17: Housing Starts, Industrial Production
4/19: Initial Jobless Claims
April 16, 2018
Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
U.S. stock futures rallied and bond prices fell overnight as per limited repercussions from missile strikes in Syria. Three days after the U.S. Treasury ruled that no country is manipulating its exchange rate, the President went to Twitter claiming Russia and China are both playing the “currency devaluation game”. US retail sales, housing starts, and initial jobless claims numbers come out this week.
PM May will take the parliamentary stage today to explain her decision to involve the UK with air strikes in Syria. She will face questions from lawmakers, some calling for parliamentary approval for future involvement. The UK and EU are set to formally discuss their post-Brexit relationship; however, detailed trade negotiations are not expected to be debated until June.
The Euro is slightly stronger against the Dollar, a quiet week of economic data releases lies ahead. France issued approximately 5 Billion Euros of bills. There are CPI numbers released this week for Italy, Austria, and the Eurozone.
The Loonie is holding steady around the prior week’s close, while the market waits to see if appetite for riskier assets stays strong. WTI crude oil is down around 1.2% at approximately $66.56/bbl, slipping off of its 3-year high. No major releases in Canada today, so FX traders will look towards global headlines and Syria.
The US Dollar has appreciated slightly against the majority of its Asian currencies. The Hong Kong dollar’s one-year interest rate swaps jumped the most in a year and a half, a move suggesting higher interest rates ahead. The Dollar did reach a session low against the Japanese Yen after the President tweeted Russia and China are playing the currency devaluation game and it is “not acceptable.”
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|Source: Bloomberg 2017|
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About the Author
Scott Petruska is a senior advisor for Silicon Valley Banks’ global financial services group, and is based in Boston, MA. He advises clients on currency and interest rate hedging strategies and helps them with other aspects of global banking. He regularly writes blogs on topics covering the global financial markets, conducts client seminars and webinars, and speaks at regional financial conferences.
Petruska has over 30 years experience in the currency and interest rate markets, and has lived and worked in Boston, Chicago, New York City, Singapore and Tokyo. Prior to joining SVB in 2009, he worked at several large international financial institutions, including National Westminster Bank, Irving Trust, Bank of New York, State Street Bank and Commerce Bank. He has been an institutional trader, product developer, analyst, salesperson and advisor.
Petruska has been awarded several professional designations, including the CFA (Chartered Financial Analyst), FRM (Financial Risk Manager) and CMT (Certified Market Technician). He earned his undergraduate degree in Finance & Banking from the University of Wisconsin.
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