Daily thread to exchange ideas and to share your thoughts
Good day, everyone! Hope you’re all doing well and that you enjoyed a good Easter break over the past few days. Markets are back in full swing again today but so far movement among major currencies have been rather modest to start the European morning.
The aussie and kiwi are the notable laggards, trading near session lows as they are weighed lower by weaker domestic bond yields. Of note, Australia 10-year yields are down by 6.5 bps to 1.895% and that’s part of the reason weighing on the currency alongside positioning ahead of the Q1 CPI data release tomorrow.
Meanwhile, the yen is leading gains but is off the highs from the Asian morning with USD/JPY holding close to 111.90 from 111.65 earlier. Other major currencies are mostly still trading in narrow ranges as we will have a rather light economic calendar session to navigate through in the day ahead.
That said, earnings season will be a key area of focus in markets this week as we’ll have a host of big names reporting including Twitter, Facebook, Microsoft, Intel and Amazon. So, just be wary of that affecting risk sentiment in the sessions to come.
P.S. SoundCloud is a little loud on standard volume so would recommend a slight lower volume adjustment before pressing ‘Play’. Be warned!