Asian stock markets: Nikkei up 0.40 %, Shanghai Composite dropped 0.35 %, Hang Seng fell 0.40 %, ASX declined 1.50 %
Commodities: Gold at $1211 (-0.25 %), Silver at $16.60 (-0.15 %), WTI Oil at $56.95 (-0.20 %), Brent Oil at $64.50 (-0.20 %)
Rates: US 10 year yield at 2.003, UK 10 year yield at 1.704, German 10 year yield at 0.166
News & Data:
New Zealand Trade Balance -NZ$2.4bln, Expected: -NZ$2.74bln, Previous: -NZ$2.18bln
New Zealand Exports NZ$4.93bln, Expected: NZ$4.40bln, Previous: NZ$3.92bln
New Zealand Imports NZ$4.30bln, Expected: NZ$4.06bln, Previous: NZ$3.87bln
New Zealand ANZ Business Confidence 30.2, Previous: 35.8
China Westpac Consumer Sentiment 111.1, Previous: 114.7
Asia shares fade, dollar pressured before Fed – RTRS
Oil dips as oversupply outweighs Saudi royal reshuffle – RTRS
Tsipras presses for May debt deal, threatens referendum – RTRS
Asian Stocks Retreat as Dollar Holds Slump Before Fed; Oil Drops – BBG
The USD weakened sharply yesterday and extended the losses overnight, as traders are expecting a weak GDP Print and a dovish FOMC today. Growth in the US economy has likely slowed to 1.0 % per quarter, partly due to the harsh winter. Further, there are not many reasons for the FOMC to be overly hawkish today given the poor economic data in the past few weeks.
USD/JPY is holding very well despite the broad Dollar weakness, but banks report large stops below 118.50 and position covering is likely to accelerate should it break below that level. USD/CAD barely held above 1.20 overnight, but also looks very vulnerable. Sub-1.20, not much support noted until 1.18.
In EUR/USD, the next big level is 1.1035 (the current month’s high). Meanwhile, GBP/USD had advanced to fresh multi-week highs, despite yesterday’s disappointing UK GDP print. Immediate resistance seen at 1.54 and above there, not much until 1.5550.
08:30 BST – Swedish Central Bank Interest Rate Decision (-0.35 %)