Forex - GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)...


 10:45 (GMT) 17 Apr

  [Forex Highlights]

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RECAP CURRENCIES, DATA AND EVENTS.

European FX and News -

GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0100-ZDFJ-C01)

+ An early run higher saw EUR/USD to a high at 1.2413, but with no major stops (the market is very long) some caution set in and we saw a drop back onto the 1.23 handle, that accelerated by a 2nd straight big fall in the ZEW survey, down to -8.2 in April from (+) 5.1 in March and 17.8 in Feb. The pair did find support at 1.2375 and is close to European opening levels.

+ Cable sprinted to a fresh YTD high at 1.4376 but that too reversing as the earnings component of another otherwise strong employment report disappointed. Cable is back down to 1.4320, EUR/GBP .8645 from a low at .8625.

+ USD/JPY again fairly flat, trading a tight range around 107.00 as the market waits for the Trump meeting with Abe.

+ EUR/CHF set a new post 1.20 floor removal high at 1.1911. No obvious sign of the SNB getting involved.

+ USD/CAD has pushed a few pints higher in Europe to around 1.2575 from 1.2550, the CAD ceding a little ground to the AUD and NZD but all three fairly tightly rangebound. NZD traders have a dairy auction to note later.

Bonds and Equities -

+ Gilts were defensive ahead of the UK data, 10s as high as 1.49%~, but back to near flat after the numbers. The further sharp drop in the ZEW survey helped further boost the early nibbling in periphery, most 10s in around 3bp, though Bunds largely flat amid firmer equities. UST still capped by European action, even with S&P ½ % higher.

US DATA

GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0100-ZDFJ-C02)

On Tuesday Mar housing starts should rise by 4.4% to 1290k while permits edge up by 0.7% to 1330k. Mar industrial production should rise by 0.4%, but with a flat outcome for manufacturing. Tuesday has several Fed speakers, with moderate-hawkish voters Williams and Quarles, Bostic again, moderate non-voter Harker and dovish non-voter Evans.

Recap EMGE Europe

GOOD MORNING Latam! (FX HIGHLIGHTS BRL MXN ARS CLP COP PEN)... (0100-ZDFJ-C03)

The slightly softer overall USD tone is helping the TRY recovery from recent much weaker levels, the apparent step down in the threat of further military strikes on Syrian chemical weapon facilities helping, although last night's tweet from President Trump complaining about FX policy in China and Russia will keep the trade war worries n the picture even so. We doubt that today's data calendar is going to add much to the picture, and while that may allow some further USD drift it may be a tough ask to expect a break below 4.0500/20 at the first time of asking.


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