USD made new lows on very weak housing figures, however boosting a rally in fixed income. Stocks looking exhausted anticipating Durable Goods today and US GDP friday.
Overnight News Bullets
- Swiss Trade Balance (Mar) out at 0.72B vs. 1.11B expected.
- Swiss UBS Consumption Indicator (Mar) out at 2.131 vs. 2.031 previously.
- Euro-Zone New Industrial Orders MoM (Feb) out at -0.7% vs. 1.0% expected.
- Canadian Leading Indicators MoM (Mar) out at 0.4% vs. 0.5% expected.
- S&P Case-Shiller Home Price Index YoY (Feb) out at -1.0% vs. -0.2% previously.
- Bank of Canada Rate Decision out at 4.25% (unchanged) as expected.
- US Consumer Confidence (Apr) out at 104 vs. 105 expected.
- US Richmond Fed Manuf. Index (Apr) out at -11 vs. -6 expected.
- US Existing Home Sales (Mar) out at 6.12M vs. 6.40M expected.
- US Existing Home Sales MoM (Mar) out at -8.4% vs. -4.3% expected.
- US ABC Consumer Confidence out at -7 vs. -5 expected.
- Japanese Merchandise Trade Balance Total (Mar) out at 1633B vs. 1380B expected.
- Japanese Adjusted Merchandise Trade Balance (Mar) out at 1123.1B vs. 950B expected.
Markets
- FX: USD TWI making new lows after the disappointing figures yesterday.
- Fixed Income: Bouncing higher across the board.
- Stocks: Ranging just below upper band of the bull channels in Europe and US. Nikkei down +1 percent.
- Commodities: Taking a beating, despite USD weakness. Crude Oil selling off, but remains above 63.
O/N Data Heat map:
Calendar
Today's Highlights:
This and Next Week??™s Highlights:
What's going on?
- USD making new lows on disappointing housing figures. Are we turning from bad to worse? Fixed Income rallying across the board, beginning to price in lower CPI readings.
- UK MPC Press Conference actually provided some support for the UK rate outlook.
- Stocks: at risk of a sell-off. The risk-reward favours the downside and fundamentals are deteriorating.
- GDP on Friday: We expect a positive surprise, but continuously deteriorating macro figures for the US economy for the rest of the year.
FX
