The US$ is under a bit of downside pressure against all the other majors ahead of Thursday trade, with Cable leading the way as a campaign to block a no-deal Brexit in the UK gathers momentum, causing shorts to cover their positions. The strength in Sterling has seen the Euro dragged higher, while the cross is at a new 2 month low. The Kiwi has also been strong through the session after yesterday’s better-than-expected CPI, which has underpinned the Aud.
In other markets, stocks have been choppy but have ended the US session pretty much unchanged, as have the metals. WTI on the other hand, ended the day down by another 1.5% as the slower 2019 economic growth story continues to impact on the price of oil. US yields have been steady, with 10Y at 2.75%, 2Y at 2.59% and the 30Y at 3.068%.
Thursday will begin with the Australian WBC Leading Economic Index and Unemployment data (exp 5.1% and +20K; PR 65.7%), and the Japanese Nikkei Mfg PMI. US Fed Chair, Jerome Powell, will be addressing the Economic Club of NY during the Asian session and this may cause some volatility. Europe will look to the ECB Interest Rate Decision, at which no change to policy is expected and the focus will be on Mari Draghi, who seems likely to have a dovish tone to his Press Conference, which could put the Euro under some renewed pressure. The Flash Manufacturing/Services/Composite PMIs will also be released. The US will also see the PMIs along with the weekly Jobless Claims but it will be otherwise a fairly thin end to the day.
Economic data highlights will include:
Thur: Australian WBC Leading Economic Index, Unemployment, Nikkei Mfg PMI, NZ Credit Card Spending, EU Flash Manufacturing/Services/Composite PMIs, ECB Interest Rate Decision/Statement/Press Conference,
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