FOREX: USDCHF Rises 1.15%, Extending Bounce From 10-Year Lows
Apr-17 16:40
- Topside momentum for NZDUSD gathered pace on Thursday following a break above the prior 0.5944 highs. The pair has risen as high as 0.5976 as we approach the close, and the latest strength signals scope for a stronger recovery to the Nov 07 high at 0.6038.
- Domestically, Q1 inflation printed higher than expected at 0.9% q/q, bringing the annual rate to 2.5% up from 2.2% in Q4. This may be providing an additional tailwind for NZD today, which remains among the best performers in the G10 FX space.
- Higher US yields have worked against the Swiss Franc and the Japanese Yen. For USDJPY, following a fresh cycle low of 141.62 made overnight, the pair looks set to close around 100 pips off these levels around 142.60. USDCHF stands out on the session, having risen 1.1% to 0.8220. This widens the gap to the most recent cycle lows and key support level, located at 0.8099.
- A late bid for equities on Trump headlines suggesting a good trade deal with China will be found has emphasised the dynamic of supported high beta currencies and pressure on the low yielders.
- The ECB cut rates by 25bps as expected, which had little impact on EURUSD which remains 0.4% weaker on Thursday. However, the likes of EURNZD and EURAUD are showing larger declines, potentially on the back of the governing council acknowledging greater downside risks to growth. Trade tensions are weighing on the ECB view on the euro area economy, seeing it as a potential demand shock increasing downside risk to economic growth, Lagarde said in the policy statement.
- In EM, this is being highlighted best by USDMXN, which has fallen to new post US election lows below 19.75. Lower levels of liquidity could be exacerbating the price action, owing to the local holiday. However, the short-term sentiment surrounding the broader dollar weakening trend appears to be prevailing here.
- The long holiday weekend sees the focus turn to Fedspeak on Tuesday and Eurozone flash PMIs scheduled on Wednesday.
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US-RUSSIA: Trump-Putin Call Concludes After Appoximately 90 Mins
Mar-18 16:38
Newswires reporting that a call between US President Donald Trump and Russian President Vladimir Putin has concluded after approximately 90 minutes.
- There has been no official readout from either the White House or the Kremlin yet. An envoy of Putin said a short time ago: "Under the leadership of President Putin and President Trump, the world has become a much safer place today," per Reuters.
- A formal statement from Trump is likely to be released via his Truth Social account.
MNI EXCLUSIVE: MNI Interviews Former Top Fed Staffer Bill English
Mar-18 16:37
MNI interviews former top Fed staffer Bill English on the U.S. and Fed outlook -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
STIR: BLOCK: Dec'25 SOFR Buy
Mar-18 16:28
- +6,700 SFRZ5 96.235, post time offer at 1220:01ET, trades 96.235 last (+0.0)
