Tuesday, April 14, 2015

Daily FX Update, 14 April 2015 OVERNIGHT MARKET UPDATE: ·


OVERNIGHT MARKET UPDATE:

·         In an interview, San Francisco Fed President Williams argued that given the improvement in labour market conditions and the broader economy, the probability of adverse shocks pushing the US economy into reverse “seems to be decreasing”. He reiterated that the pace of the tightening cycle would be gradual and data dependent.
·         The US Federal Government recorded a monthly deficit in March of US$52.9 billion – above consensus (US$43 billion). Receipts were up 8.5% (a good sign for the economy) but outlays rose 13.6%. The March figure brings 12-month rolling deficit to US$ 510 billion, a slight deterioration on a year ago, but still down when expressed as a share of GDP.     
·         France's current account deficit in February increased from the previous month, as the visible trade shortfall widened due to the reduction in the growth of international trade. The seasonally adjusted current account deficit rose to EUR1.8 billion in February from EUR0.2 billion in January.
·         In the currency market, JPY strengthened after an advisor to the Prime Minister suggested the yen is undervalued. NZD and AUD consolidated on losses from the Asian session due to weak Chinese trade data, and GBP gained on an election poll.  
·         US Treasuries climbed 3 basis points, before declining five to trade two basis points lower in yield (1.93%).     
·         US stocks were little changed in advance of the reporting season. The DJIA and S&P 500 were both down marginally at 0.45% and 0.46%.   
·         Crude oil markets were slightly firmer. The latest CFTC data showed an increase in speculative net longs in crude oil markets. The net managed money position increased by 52,000 contracts (futures and options) to 225,000 contracts as of last Tuesday.      
Gold prices ended lower after the dollar trended higher against some major currencies and some soft trade data from China. Gold prices closed 0.63% lower at US$1,199.94 per ounce from the previous closing.

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