US equities are opening slightly higher, and bond yields are higher. The UST 10yr trades at 2.83% as markets are cautious to start the week ahead of several speeches by Federal Reserve members, which may bolster expectations of a 50 basis point hike in May. The US dollar is broadly higher, and WTI oil trades at $108.44 per barrel and gold up to $1995 per oz. Many markets in Asia and Europe are closed for Easter. Boston/Massachusetts state is closed for Patriots’ Day/Boston Marathon.
Economic Data and Events:
Monday; US Housing Market Index
Tuesday: US Residential Construction; Canada Housing Starts & Existing Home Sales; Japan Industrial Production, Trade Balance
Wednesday: US Existing Home Sales; Eurozone Industrial Production; Canada CPI
Thursday: US Leading Economic Index; Eurozone CPI; Japan CPI
Friday: US Manufacturing and Services PMIs; Eurozone Manufacturing and Services PMIs; UK Retail Sales; Canada Retail Sales
April 18, 2022
EUR/USD 1.0800 GBP/USD 1.3035 USD/CAD 1.2617 AUD/USD 0.7372 USD/JPY 126.56 USD/CNH 6.3758 USD/ILS 3.2317 USD/MXN 19.9557 USD/CHF 0.9430 USD/INR 76.2688 USD/BRL 4.6766 USD/SGD 1.3604 USD/DKK 6.8863 USD/SEK 9.5659 USD/NOK 8.8398
The dollar is broadly higher in light overnight trading with many centers in both Asia and Europe on Easter holiday. Its biggest gains are against the big commodity currencies – NZD, AUD, NOK and CAD – despite higher commodity prices.GBP
The UK stock exchange is only open in the morning in observance of Easter. The UK pound is slightly lower in line with other major currencies versus a broadly stronger US dollar. The pound at $1.3033 is not far from last Wednesday's low for 2022 of $1.2974. Investors are focused on a slew of economic releases on Friday, including UK Retail Sales and Manufacturing and Service PMIs, which are expected to be weak.EUR
The EUR/USD is trading at $1.0797, not far from last Thursday’s 2022 low of $1.0758. The previous significant low was $1.0636 reached in late March 2020. Investors await a slew of economic data for the Eurozone, including Industrial Production, CPI and Manufacturing and Service PMIs.CAD
The loonie is slightly lower, but off its worse levels, as oil at $108.44 is well up from earlier trading at $106.00. Investors await a slew of economic data releases this week, including Canada Housing Starts, Home Sales, CPI and Industrial Production.ASIA/PACIFIC
The Japanese yen continues to weaken – it has weakened every day in April, and now sits nearly 9% lower versus the dollar since early March when USD/JPY traded comfortably under ¥115.00.
The CNY is virtually unchanged from Friday’s close, despite upbeat economic data, including better than expected Q1 GDP YoY growth of 4.8% vs 4.0% for Q4.
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