22 Feb: Firm bond yields lead US$ higher, stocks lower. Fed speakers ahead. UK Q4 GDP, IFO later.

By | February 22, 2018

 

The dollar has remained firm against all the other majors following some volatile price action on the release of the FOMC Minutes on Wednesday, while stocks and commodities are lower as investors look towards the prospect of higher interest rates. US yields hit their highest level in 5 years, with the 10’s trading at 2.957%. The minutes indicated that the Fed have grown more positive on the economic outlook, citing “substantial underlying economic momentum,” and are increasingly optimistic about achieving their inflation target. Earlier in the day, Sterling took a tumble after the release of the January Unemployment data. The UK jobless claims dropped -7.2k in January, better than expectation of 2.3k but the unemployment rate rose to 4.4% in the three months to December, above expectation of 4.3% and the first rise in unemployment rate since August 2016. Unemployment jumped 46k in the final quarter of 2017, sharpest increase in almost five years.

Thursday will begin with the Asian session with a couple of fed speakers Kashkari and Quarles, which may provide some action ahead of Europe, when the ECB Minutes of the last meeting, the German IFO Business Climate/Expectations and the Provisional Q4 UK GDP will be in focus (exp 0.5% mm, 1.5% yy).  The US then gets the weekly Jobless Claims, the Kansas Fed Mfg Activity for Feb, and more Fed speakers, this time Dudley/Bostic. Have a good day.

CURRENCIES
EURUSD: 1.2287
Res  1.2320  1.2360  1.2400
Sup  1.2275  1.2235  1.2205
USDJPY: 107.69
Res  107.90  108.15  108.45
Sup  107.40  107.25  107.00
GBPUSD: 1.3921
Res  1.3965  1.4000  1.4025
Sup  1.3905  1.3875  1.3835
USDCHF: 0.9385
Res  0.9395  0.9410  0.9440
Sup  0.9365  0.9340  0.9320
AUDUSD: 0.7806
Res  0.7825  0.7850  0.7880
Sup  0.7800  0.7780  0.7760
NZDUSD: 0.7321
Res  0.7335  0.7360  0.7385
Sup  0.7315  0.7300  0.7275
INDICES / COMMODITIES
S+P: 2698
Res  2705  2715  2725
Sup  2695  2685  2675
DJ30.fs: 24785
Res  24880  24985  25115
Sup  24730  24575  24475
SPI200.fs: 5913
Res  5925  5945  5965
Sup  5895  5870  5850
GOLD: 1324
Res  1330  1340  1345
Sup  1320  1310  1300
XAGUSD: 16.47
Res  16.55  16.70  16.95
Sup  16.35  16.20  16.00
OIL (WTI): 61.10
Res  61.55  61.90  62.45
Sup  60.70  60.20  59.70