The strongest to weakest currencies of the majors

The AUD is the strongest and the JPY is the weakest as the NA session begins.

The AUD is running after the RBA removed its promise to be "patient" from its rate statement after their meeting. As a result, expectations for a rate rise have moved closer with Goldman Sachs and others (see post here) now see a rate rise by June. Justin outlines the subtle, but important, shifts in the RBA statement this month HERE. Meanwhile, Eamonn posted that BNZ sees 50 bp rise at the May meeting hesitantly keeping April hike at 25 bps. The NZD is following the AUD higher today.

In Japan, BOJ Kuroda was on the wires saying that they are full steam ahead on their stimulus program. He said (among other things):

  • BOJ is not in situation such as Fed faces where wages and prices are spiraling upward, therefore appropriate to continue monetary stimulus

The EU announced additional sanctions against Russia including the ban of potash fertilizer, and machinery and other equipment. However, the will continue to allow oil and natural gas to continue to be imported.

IN China, the Shanghai lockdown has been extended indefinitely, but oil prices are still higher despite the falling of demand from the lockdowns.

European services PMI data were generally stronger than expected (exception Spain).

Feds WIlliams, Kashkari and Brainard are all expected to speak today.

US stocks are marginally lower. The major indices are on a 2-day win streak. US yields are higher. The 2-10 year spread is near back near flat.

A look at markets shows:

A snapshot of the markets as North American traders enter for the day shows:

In the premarket for US stocks, the major indices are trading lower. The major indices have been up for two consecutive days. Yesterday the NASDAQ led the charge with a near 2% gain on the day

In the European equity markets, the major indices are mostly little changed in the North American morning snapshot

  • German DAX, -0.3%
  • France's CAC, -1.3%
  • UK's FTSE 100 -0.1%
  • Spain's Ibex, +0.8%
  • Italy's FTSE MIB -0.7%

In the US debt market, US yields are higher:

  • 2 year 2.469%, +4.5 basis points
  • 5 year 2.611%, +5.7 basis points
  • 10 year 2.469%, +7 basis points
  • 30 year 2.529%, +7 basis points
  • 2– 10 year spread is back to flat

The European debt market yields are also sharply higher

European yields
European yields are higher