Stocks are mixed, ending the day around their opening levels, while the US$ has is mildly firmer, grinding higher through a quiet Monday session, with the ongoing meltdown in Emerging Markets, particularly the ARS and TRY in focus and infecting the rest of the EM FX and high-beta sector, with the MXN, BRL and the Kiwi under pressure today. Elsewhere the majors have been quiet and rangebound although the US$ is mostly finishing on the day’s highs. The US10Y is ending the day above 3% (3.005%) which is helping to underpin the dollar. WTI settled higher as traders cheered a mostly bullish report from OPEC showing that excess stockpiles of global crude has been nearly eliminated.
Tuesday will be a busy session, beginnings in Asia with the RBA Minutes and the China Retail Sales/Industrial Production figures. Europe will follow up with the German/EU Preliminary Q1 GDP (exp +0.4% qq both for German/EU), UK Unemployment (exp +3.5k, Ave Earnings – excluding bonus +2.8%) and Inflation Report Hearing, as well as the German/EU ZEW Economic Sentiment Survey. The day will finish with the US Retail Sales (exp RS-Ex Auto +0.5%mm, Control Group +0.3%mm).
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