Chinese president soothes worries

10 April, 2018

With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers, as FOMC Member Kaplan and MPC Member Haldane are due to make separate speeches. The US/China Trade War has been dominating headlines, with Chinese President Xi speaking overnight and soothing market worries. He said that China is an open, reforming country that promotes free trade and will stick to this policy in order to succeed. He said that cold war mentality is out of place and dialogue is the way to resolve disputes. He added that China will sharply widen access to the market, will expand imports and lower auto import taxes. He also said that they will strengthen intellectual property protection. The market went risk-on after the speech, USDJPY rising from 106.614 to 107.240. US equity markets regained their losses from the end of the US session and gold fell from 1337.00 to 1330.00

UK Halifax House Price Index (MoM) (Mar) was 1.5% v an expected 0.2%, against 0.4% previously, which was revised up to 0.5%. UK Halifax House Price Index (3m/YoY) (Mar) was 2.7% v an expected 2.1%, against 1.8% previously. This data has been declining since hitting a high of 3.9% in June 2014. This latest release puts the month-on-month reading at a 14-month high, with a strong pick up in the numbers. GBPUSD rose from 1.41020 to 1.41165 following this data release.

The Bank of Canada Business Outlook Survey was published. The capacity pressure indicator has moderated but firms see capacity pressures intensifying over the coming 12 months. Labor constraints continue to be the most prevalent obstacle to firms scaling up operations. Economic slack appears to be mostly concentrated in energy-producing regions. Inflation expectations over the next two years picked up, with over half of the firms expecting inflation to be in the upper half of the 1-3% range. Investment intentions edge down but continue to point to an increase in the next 12 months. The share of firms anticipating strong economic growth in the United States in the next 12 months is near record-high levels. 20.9% of firms said US changes have had an unfavourable impact vs 19.8% prior. USDCAD fell from 1.27535 to 1.27140, moved by this data release.

The ECB’s Praet made a speech, giving the following comments on the economy: Inflation developments remain subdued. Monetary policy will evolve in a data-dependent way. There appears to be a disconnect between growth and inflation. An ample degree of monetary policy stimulus remains necessary.

New Zealand NZIER Business Confidence (QoQ) (Q1) data was released at -11%, with a previous reading of -12%. This is the second reading in a row with a negative headline number, something that hasn’t happened since 2009.

Source link  
Equity market causes investors confusion

As a turbulent December in equity markets draws to a close, there's one thing traders and investors can agree on: these are not usual times, especially...

Global debt exceeded $ 184 trillion

According to the International Monetary Fund (IMF), the global debt has achieved $184 trillion with $86,000 per person, a figure that is twice larger than...

Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...

Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...

Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...

Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...

U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...

In the past 24 hours Bitcoin has gained 0.8% and reached $3666.27778223. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.5351% and is now at $1.1563. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -3.75% and is now at $123.213701749. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Daily Forex Market Reviews

Forex Currencies Forecasts

Top 10 Forex Brokers 2019

# Broker Review
5FIBO GroupFIBO Group83%
10FP MarketsFP Markets69%