Waiting game

Today's news headlines:

‘US sends Ukraine more weapons and intelligence to repel Russian offensive’. The US has supplied an additional $800m in military support to Ukraine as Russian forces regroup following the resistance faced in Kyiv. US President Joe Biden has stepped up the pressure on Vladimir Putin in the media, accusing the Russian President of genocide. According to NATO, western countries have recently become more willing to send offensive weaponry to Kyiv as talks around potentially providing fighter jets continue. (Financial Times)

‘Treasuries extend rally as traders weigh future direction of monetary policy’. Market expectations for aggressive interest rate hikes by the Federal Reserve have cooled in recent days. US Interest rates are projected to rise another 2.00% this year, lower than the 2.25% that was priced in at the start of the week. The US Dollar Index has extended its losses for a second day, trading 0.20% lower this morning. This adjusted pricing comes as Core CPI slowed unexpectedly in March as investors attempt to gauge peak inflation. (Financial Times)


Today

Asian markets followed Wall Street higher overnight as US Treasury yields ticked lower. Crude oil is down 1.50% this morning while the Euro and Pound recover from lows amid a weaker US Dollar. European markets are pointing higher in early trade.

Events

Australian Unemployment Rate: 4.0% (est. 3.9%)
European Central Bank Monetary Policy Statement: 12:45PM
European Central Bank Press Conference: 1:30PM
US Retail and Core Retail Sales m/m: 1:30PM
US Unemployment Claims: 1:30PM
US preliminary University of Michigan Consumer Sentiment: 3:00PM
Federal Open Market Committee member Loretta Mester speaks: 8:50PM

Interbank rates:

GBP/USD – 1.3134
GBP/EUR – 1.2034
EUR/USD – 1.0913
USD/CAD – 1.2562

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.