The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
Daily News: Wednesday, March 14
Mr. Trump cannot stop: U.S. Secretary of State Rex Tillerson resigned yesterday. It is the fifth resignation during two weeks. Such replacements shake markets a lot.
- An appointment of CIA director Mike Pompeo means the further escalations in concern over global trade war and international conflicts.
- Asian stocks fell based on the news from the White House.
- The 10-year Treasury yield declined as both headline CPI and core CPI showed weaker figures (CPI m/m against 0.2% against previous 0.5%, core CPI m/m 0.2% against 0.3%).
- The US dollar index fell that led to the strengthening of some currencies.
- The euro is unstable because of Mr. Draghi comments about the predictable European policy. Moreover, Mr. Draghi announced that euro strength could weigh on inflation down the line. US retail sales and PPI m/m releases are anticipated today at 14:30 MT time. If data is greater than expected, the euro will fall further. The support lies at 1.2360.
- After the three-day increase, the pound is falling. The UK currency could not break the resistance at 1.3965 and turned around. No important data is anticipated at the rest of the week. So let’s see, maybe negative US data will support the sterling.
- The US dollar is strengthening against the yen. The Governor of the bank of Japan Mr. Kuroda said that there is no point to consider changes in the monetary policy until the target of inflation is reached.
- The Canadian dollar is continuing to fall against the greenback. Yesterday the loonie showed a great decline because of the comments of the Bank of Canada’ governor Mr. Poloz. He declared that the Canadian economy rises without the increase in inflation. It means that the BOC does not plan to raise interest rates in the soon future.
- Although comments of the assistant governor Christopher Kent did not give any reasons to anticipate an increase of RBA’s interest rates, the Australian dollar is rising. Net strong data from China pushed the aussie. The AUD/USD pair is moving to the resistance at 0.79.
- Bitcoin fell closer to $9,000. Maybe the news on the Google’s ban on cryptocurrency and ICO ads caused the decline.
Ex- U.S. secretary of State Rex Tillerson and president of the US Donald Trump
The RBA will make a rate statement on August 4 at 7:30 MT time.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…