GOLD: Dollar Strength Pushes Gold Lower
May-08 22:35
- Gold last ground again last night as the USD reasserted itself following the announcement of a trade deal between the UK and the US.
- The deal comes just prior to a proposed meeting between US and Chinese officials in which President Trump said he believes tangible results will come from.
- Markets then focused on the fact that US rates are on hold, piling back into the dollar which in turn sent gold lower.
- Gold declined -1.75% for its second consecutive day of meaningful declines and sees bullion trading just above the 20-day EMA of $3,284.33.
- Despite the sell off over the last two days, all major moving averages remain upward sloping; a sign that the bullish momentum remains.
- Gold remains on track for another weekly gain, and is up over 27% year to date.
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JPY: USDJPY - US Yields Slowing The Move Lower
Apr-08 22:28
- The overnight range was 145.97 - 147.67, Asia opened close to the lows around 146.15.
- CNH/JPY is looking to break some pivotal support around 19.50/20.00.
- Should the PBOC let the CNH weaken to compensate for the tariffs, this move would accelerate and drag cross-JPY lower with it.
- President Trump is said to have spent the final hours before his tariffs were set to be implemented, lining up negotiations with key US allies.
- The Market is hoping for a sign of any of these actually being done and the details thereof in order to bring some much needed relief.
- The environment for the BOJ seems to be more challenging and due to their conservative approach there is now a risk that it will delay policy normalisation.
- USD/JPY has seen its bounce back to 148.00 falter and has drifted lower as risk has closed poorly the market showing its disappointment at no deal being made yet.
- The fact that USD/JPY has not followed the move higher in US fields shows the market is more concerned with risk aversion and the potential move lower in JPY crosses.
- On the day expect sellers again back towards 147/148 with all eyes on CNH/JPY.
- Key pivotal support lies around 140.00, a break of this area would really set the cat amongst the pigeons and open a quick move back to the 1.25/1.30 area.
- Data : March Consumer Confidence Index, est. 34.8, prior 35.0, March Machine Tool Orders YoY, prior 3.5%.
USDJPY
Source: MNI - Market News/Bloomberg
ASIA: Government Bond Issuance Today.
Apr-08 22:24
- Bank of Korea to Sell KRW500 Bn 1-Year Bonds
- Bank Indonesia to Sell 91D SUVBI Bills
- Bank Indonesia to Sell 33D SUVBI Bills
- Bank Indonesia to Sell 276D SUVBI Bills
- Bank Indonesia to Sell 186D SUVBI Bills
- Bank Indonesia to Sell 367D SUVBI Bills
- Thailand to Sell THB15 Bn of 2040 Bonds
- Thailand to Sell THB30 Bn of 2028 Bonds
- China to Sell 20 Bn Yuan 28-Day Bills
- China to Sell 20 Bn Yuan 63-Day Bills
- Vietnam To Sell VND 0.5Tln 2030 Bonds; (TD2530008)
- Vietnam To Sell VND 10.0Tln 2035 Bonds; (TD2535026)
- Vietnam To Sell VND 0.5Tln 2055 Bonds; (TD2555052)
- Vietnam To Sell VND 0.5Tln 2040 Bonds; (TD2540037)
- South Korea to Sell KRW 2tn 63-Day Financial Bills
- India to Sell 50 Bn Rupees 182-Day Bills
- India to Sell 90 Bn Rupees 91-Day Bills
- India to Sell 50 Bn Rupees 364-Day Bills
ASIA: Coming Up in Asia Today
Apr-08 22:18
| 2200GMT | 0700HKT | 0900AEDT | South Korea Unemployment SA MAR |
| 0200GMT | 1100HKT | 1300AEDT | South Korea Bank Lending to Households MAR |
| 0330GMT | 1230HKT | 1430AEDT | RBI Repurchase Rate |
| 0330GMT | 1230HKT | 1430AEDT | RBI Cash Reserve Ratio |
