US Morning Notes – USD mixed, GBP supported by election polls
Monday, April 5th, 2010FX Highlights
- The USD is trading mixed to higher in holiday thinned trade, USD is supported by Fridays positive jobs report and rising US bond yields, GBP is trading in a narrow range supported by UK election polls which show the Tories have a 10 point lead over Labor, EUR is trading lower pressured by selling in cross trade to GBP and in reaction to Friday’s report of a jump in US payrolls, AUD trades lower pressured by rumors that the RBA will hold monetary policy steady Tuesday, JPY trades higher supported by speculation China may be closer to changing Yuan policy
- Focus turns to today’s release of US non manufacturing ISM and pending home sales index, Federal Reserve Board Governors will meet Monday to consider a possible hike in the discount rate
- US to delay the April 15th currency report on China in hope the delay will encourage China to strengthen the Yuan, JPY higher
- US 10 year bond yields hit a 10 month high in reaction to report Friday that US job growth was strongest in three years
- Bureau of Economic Analysis says that corporations are reluctant to hire because of an uncertain economy and are sitting on a record 1.6trln in cash reserves
- Despite the fact the US recession is technically over, the Federal Reserve Bank of Philadelphia says that economic activity fell in half of US states over the last three months
- GM car sales jump 21%, Ford sales rise close to 40%,Toyota sales rise 35.3% ,Nissan sales rise 43.3%
- US office vacancy rises to its highest level in 16 years during Q1
- CFTC commitment of traders for last week shows that speculators increased USD long positions to the highest level since February 23rd
- US equity markets set to open higher, European equities closed for holiday, Nikkei closed 53 points higher
Upcoming Events
- US- Monday, March non- manufacturing PMI will be released expected at 53.5 compared to 53 last month along with February pending home sales index expected at 90.2 compared to 90.4 in January
- CAN-Monday, no major Canadian economic data is due for release today
Written by Easy-Forex
