The US$ headed lower on Thursday, after some dovish speeches from the Fed’s Bullard, Evans and Bostic preceded the equally dovish FOMC Minutes. Atlanta Fed President said that the hike in December most likely increases rates to neutral and the Fed needs to be patient and get better insight on economic risks. The Euro and the Chf led the way higher for the counterpart currencies, while elsewhere the dollar traded with a generally heavy tone.
Elsewhere, US stocks liked the fact that the rate cycle may be over and headed up by around 0.5%(DJI,S+P)/0.9%(NASDAQ), while the metals also headed higher, assisted by the softer dollar. The big mover was, once again, WTI which rose by 5% as Saudi Arabia vowed to stabilise the market, while traders also took hope from the positive soundbites coming from the US/China trade talks. Despite the dovish rate talk form the US, US yields headed higher, with the US10Y trading at 2.735%.
The main event today will be the China CPI/PPI (CPI, exp 0.3%mm, 2.1%yy; PPI, exp 1.6%yy). From the EU, we get the ECB Minutes, while the US will see a thin calendar but Fed speeches from Powell, Bullard, Evans and Clarida
Economic data highlights will include:
Thur: UK Like-for-Like Retail Sales, China CPI, PPI, New Loans, Japan Coincident Index, Leading Economic Index, ECB Minutes, Fed Speakers: Powell, Bullard, Evans, Clarida
|INDICES / COMMODITIES|