- What are the key risk events in markets this week?
- ECB’s Wunsch says wouldn’t be surprised if rates hit 4% at some point
- Germany April Ifo business climate index 93.6 vs 94.0 expected
- SNB total sight deposits w.e. 21 April CHF 538.4 bn vs CHF 544.1 bn prior
- Bundesbank says German economy likely expanded in Q1
- China reportedly calls for banks to further cut deposit rates
Markets:
- CHF leads, JPY lags on the day
- European equities little changed; S&P 500 futures down 0.1%
- US 10-year yields down 3.5 bps to 3.537%
- Gold up 0.1% to $1,984.04
- WTI crude down 0.1% to $77.61
- Bitcoin up 0.7% to $27,461
It was a relatively slow session to kick start the new week, as markets are still treading with caution after the more mixed showing last week.
Major currencies didn’t do much, though the yen is seen weaker while the dollar trades more mixed across the board. USD/JPY climbed from 134.10 to 134.60 on the session despite the fact that Treasury yields are a little heavier.
Meanwhile, EUR/USD is up around 0.1% now and testing waters back above 1.1000 while AUD/USD is marked down by 0.2% to 0.6680. The changes are relatively light, as traders don’t really have much to work with for now.
European equities started off a little softer, matching the mood in US futures. However, that all switched up after the cash open as stocks gradually pared losses to keep lightly changed at the moment.
After the back and forth action from last week, we might be in store for more of that in early stages of this week before getting to month-end trading, the BOJ policy decision, and some key economic data on Friday.
This article was written by Justin Low at www.forexlive.com.