21 April 2017
Asia FX and News -
+ BoJ will continue with very accommodative policy, maintain the current pace of asset purchases for some time, Governor Haruhiko Kuroda said.
+ Britons' confidence in the housing market stayed near a three-year low in March according to the Halifax.
+ "The reason we have a debt ceiling law is to force us, every now and then, to look at how much we've borrowed" - White House Budget Director Mick Mulvaney.
+ BBG: Japan FinMin Aso thinks he shared common thinking on the JPY FX market with US Tsy Sec Mnuchin.
+ BBG: China's regulators will consider potential market impacts when they introduce additional regulations on the shadow banking sector, according to a PBoC researcher.
+ Quiet trade with the French elections in focus, some risk coming off as EUR/JPY dipped below 117.00. EUR/USD remained well short of the higher levels seen through Thursday though kept on the 1.07 handle. USD/JPY was generally within a 119.20/35 range, while Cable stuck to a narrow range around 1.28. AUD, NZD and CAD trade was also subdued.
Nikkei and JGBs -
+ N225 closed +1.03% at 18620.75. 10yr JGBs yield 0.01%.
European FX and News -
+ UK retail sales woke up a sleepy FX market with a big downside miss at -1.8% m/m vs +0.2% expected. Cable dropped from 1.2830 to 1.2780 around the move, the selling - once again - starting before the release. It has since recovered the 1.28 handle as the ONS blamed weakness on "a consequence of price increases across a whole range of sectors" which has given the interest rate hawks a boost.
+ EUR/USD has seen a few trades below 1.0700 despite another improved set of flash PMI releases, the overall Eurozone composite at 56.7 the highest since April 2011.
+ USD/JPY has slipped lower to around 109.05 with EUR/JPY lower again, down to 116.65 at one stage.
EUR/CHF is back below 1.0700, the fall limited with a low at 1.0688 showing.
+ The commodity currencies are reasonably steady, the AUD still probably the pick as CAD traders eye CPI data later. Crude futures are just about flat both for WTI and Brent.
+ EUR/SEK remains slightly better bid ahead of speeches from Riksbank's Ingves and Jansson later.
Bonds and Equities -
+ Bunds are treading water while OATs still show no sign of pre-election nerves. Gilts are outperforming after the sharp drop in retail sales.
+ Equities are generally flat (Dax) to modestly lower (FTSE and Eurostoxx), though US futures are mainly just in the green.
06:00 GMT - NO: Trade Balance (Mar) NOK bn (Prev: 23.5)
07:00 GMT - FR: Manufacturing PMI (Prelim) (Apr) index (Mkt: 53.1 Prev: 53.3)
07:00 GMT - FR: Services PMI (Prelim) (Apr) (Mkt: 57 Prev: 57.5)
07:30 GMT - DE: Manufacturing PMI (Prelim) (Apr) (Mkt: 58 Prev: 58.3)
07:30 GMT - DE: Services PMI (Prelim) (Apr) (Mkt: 55.5 Prev: 55.6)
08:00 GMT - EU: Composite PMI (Prelim) (Apr) 4cast: 56.6 index (Mkt: 56.4 Prev: 56.4)
08:00 GMT - EU: Current Account (nsa) (Feb) EUR bn (Prev: 2.5)
08:00 GMT - EU: Current Account (sa) (Feb) EUR bn (Prev: 24.1)
08:00 GMT - EU: Manufacturing PMI (Prelim) (Apr) 4cast: 56.4index (Mkt: 56 Prev: 56.2)
08:00 GMT - EU: Services PMI (Prelim) (Apr) 4cast: 56.2index (Mkt: 55.9 Prev: 56)
08:30 GMT - UK: Retail Sales (ex Auto Fuel) (Mar) 4cast: -0.2% m/m (Mkt: -0.5 Prev: 1.3)
08:30 GMT - UK: Retail Sales (ex Auto Fuel) (Mar) 4cast: 4.1% y/y (Mkt: 3.8 Prev: 4.1)
08:30 GMT - UK: Retail Sales (inc Auto Fuel) (Mar) 4cast: 1.5% m/m (Mkt: -0.5 Prev: 1.4)
08:30 GMT - UK: Retail Sales (inc Auto Fuel) (Mar) 4cast: 3.7% y/y (Mkt: 3.3 Prev: 3.7)
08:30 GMT - IT: Current Account (Feb) 4cast: EUR mn (Prev: -1913)
Still To Be Released -
12:00 GMT - US: Existing home sales (Mar) 4cast: 5.75mn (Mkt: 5.6 Prev: 5.48)
12:30 GMT - CA: CPI (Mar) 4cast: 0.4% m/m (Mkt: 0.4 Prev: 0.2)
12:30 GMT - CA: CPI (Mar) 4cast: 1.8% y/y (Mkt: 1.8 Prev: 2)
12:45 GMT - US: Manufacturing PMI (Prelim) (Apr) 4cast: index (Mkt: 53.8 Prev: 53.3)
Events & Auctions:
n/a GMT - EU: EU's Mogherini Speaks in New Dehli
n/a GMT - JP: Deputy Prime Minister Aso and BoJ's Koruda Speak in Washington
n/a GMT - WLD: G20 Finance Ministers and Central Bank Govenors Attend Meeting in Washington (to 23rd)
00:30 GMT - NZ: Bloomberg April Economic Survey
10:00 GMT - UK: Bills auction
11:45 GMT - UK: BoE Saunders Speaks in London
12:30 GMT - CA: Finance Minister Morneau Speaks in Washington
12:30 GMT - US: Fed's Kashkri Speaks in Minnesota
13:30 GMT - US: Fed's Kashkari Speaks in St. Paul