FXStreet

Asian equities recover on reduced EU political tensions and fresh US index highs ========== Asian equities recover on reduced EU political tensions and fresh US index highs. After a risk-off day yesterday, Asian markets took comfort today in EU markets settling down somewhat from worries related to France's political turmoil that engulfed trading last week. US broad-based gains in Nasdaq and S&P500 overnight also provided a boost. The Reserve Bank of Australia (RBA) kept rates on hold, reiterating not to rule anything 'in or out'. Australian weekly consumer confidence rebounded as tax cuts and wage hikes come into view for consumers. However, New Zealand's Q2 Consumer Confidence fell back to its lowest level since Q3 2023. US equity futures were flat during Asian trading, following large rises in Nasdaq and S&P500 overnight. Looking ahead, the focus will be on US May advanced Retail Sales and May Industrial Production. Holidays in Asia this week include India, Indonesia, Malaysia, Philippines, and Singapore on Monday, and Indonesia on Tuesday. The Nikkei 225 opened +0.9%, ASX 200 +0.9%, Hang Seng -0.3%, Shanghai Composite +0.3%, and Kospi +1.0%. The EUR/USD is trading between 1.0719-1.0741, USD/JPY between 157.51-157.74, AUD/USD between 0.6585-0.6622, and NZD/USD between 0.6114-0.6140. Gold is up 0.2% at $2,334/oz, and crude oil is down 0.2% at $79.57/barrel. #AsianEquities #EuPoliticalTensions #UsIndexHighs #Rba #ConsumerConfidence #UsRetailSales #UsIndustrialProduction #Nikkei225 #Asx200 #HangSeng #ShanghaiComposite #Kospi #Eur/usd #Usd/jpy #Aud/usd #Nzd/usd #Gold #CrudeOil https://www.fxstreet.com/analysis/asian-equities-recover-on-reduced-eu-political-tensions-and-fresh-us-index-highs-202406180541

EUR/USD: New YTD lows for Euro as dust from hot US inflation hasn't settled ========== The Euro has reached new year-to-date lows against the US dollar as the dust from the hot US inflation announcement has not settled. The European Central Bank (ECB) meeting did not bring any surprises, with President Christine Lagarde avoiding questions about interest rate cuts. Bets on a possible June rate cut remain high. The US dollar maintains an advantage in relation to key interest rates, which could widen the gap if the ECB reduces rates in June without the Fed doing the same. International stock markets have reacted surprisingly and pared down some recent losses, but concerns about high inflation, high interest rates, and geopolitical issues create a dangerous cocktail for the global economy. The University of Michigan's index of consumer sentiment is the only notable event on today's agenda. The author remains loyal to their view of buying the Euro near 1.06 levels, expecting signs of fatigue in the US dollar's bullish trend and a reactionary behavior from the Euro. #Eur/usd #Euro #UsDollar #Inflation #EuropeanCentralBank #InterestRates #UsEconomy #InternationalStockMarkets https://www.fxstreet.com/analysis/eur-usd-new-ytd-lows-for-euro-as-dust-from-hot-us-inflation-hasnt-settled-202404120812

Dollar retreats on soft US PMIs, bond yields tumble ========== The US ISM Manufacturing PMI in February fell to 47.8, way below estimates of 49.5, and 49.1 previously. US Bond yields tumbled, with the 10-year rate settling at 4.18% (4.25%). The 2-year US treasury rate slumped 11 basis points, finishing at 4.53%. The Dollar Index (USD/DXY), which measures the value of the Greenback against a basket of 6 major currencies, retreated below the 104 level to 103.87 at the New York close. The Australian Dollar (AUD/USD) rebounded against the Greenback, settling at 0.6525 (0.6500). New Zealand’s Kiwi (NZD/USD) rallied 0.3% to 0.6105 from 0.6085 Friday. Sterling (GBP/USD) climbed to 1.2660 (1.2620). The Euro (EUR/USD) edged up 0.25% to 1.0840 (1.0807 Friday). The Japanese Yen weakened past the 150 Dollar mark. The USD/JPY pair finished at 150.12 (149.90 Friday). Wall Street stocks gained. The DOW climbed to 39,050 from 38,880 Friday while the S&P 500 added 0.79% to 5,133 (5,080 Friday). Other economic data released Friday saw the Eurozone January Unemployment Rate dip to 6.4%, against forecasts at 6.5%, unchanged from 6.4% previously. China’s February Caixin Manufacturing PMI climbed to 50.9 from 50.8 previously, beating estimates at 50.6. #Dollar #UsPmis #BondYields https://www.fxstreet.com/analysis/dollar-retreats-on-soft-us-pmis-bond-yields-tumble-202403040330