Date: APRIL18, 2018
Daily World Economic and Financial News
(CNBC) APRIL18, 2018 ---- The dollar held to modest gains on Wednesday after climbing off a three-week low on upbeat U.S. data, although lingering caution over U.S.-China trade tensions confined currencies to narrow ranges. The dollar index against group of six major currencies stood effectively flat at 89.505 after gaining 0.1 percent overnight. The index had stooped to 89.229, its lowest since March 27 before pulling back on stronger-than-expected March U.S. housing starts and steady industrial production figures.
(CNBC) APRIL18, 2018 ---- The dollar inched up 0.05 percent to 107.040 yen after dipping to 106.885 on Tuesday.
(CNBC) APRIL18, 2018 ---- The euro was little changed at $1.2371.
(CNBC) APRIL18, 2018 ---- The pound was effectively flat at $1.4295, nudged away from a post-Brexit referendum 22-month high of $1.4377 scaled early on Tuesday by weaker-than-expected British wage data.
(CNBC) APRIL18, 2018 ---- The yen slipped even as S&P Global Ratings revised Japan's outlook to 'positive' from 'stable' on the view that a stronger economy set the stage for fiscal improvement.
(CNBC) APRIL18, 2018 ---- The Australian dollar extended overnight losses and dipped 0.05 percent to $0.7767, having been on the back foot following Tuesday's lukewarm Chinese economic data.
(CNBC) APRIL18, 2018 ---- The New Zealand dollar was steady at $0.7344.
(WSJ) APRIL18, 2018 ---- China’s central bank gave a green light to banks to dig into reserves to lend more, signaling government worries about slowing momentum for economic growth amid rising trade tensions with the U.S. For the first time in two years, the People’s Bank of China announced a reduction in the portion of deposits commercial banks are required to hold in reserve. The cut at 1 percentage point is broader than most previous such moves and, when it takes effect April 25, will unleash about $200 billion in funds.
(WSJ) APRIL18, 2018 ---- Economic policy makers gathering in Washington for the spring meetings of the International Monetary Fund and World Bank are sticking to optimistic global growth forecasts even though trade tensions between the world’s two largest economies have unsettled global stock markets. Global economic output is on course to grow 3.9% in 2018, the best year since 2011, with every major economy poised to grow for the second year in a row, according to the International Monetary Fund’s forecasts released Tuesday.
(BLOOMBERG) APRIL18, 2018 ---- Stocks gained in Japan, Australia and South Korea. Chinese automakers fell after China moved to allow foreign players to take full ownership of their local ventures. The People’s Bank of China late Tuesday announced a cut in the reserve requirement ratio for banks, part of its efforts to support credit amid a crackdown on shadow lending. China’s 10-year bond yield fell the most since June. The yen fell amid signs the U.S. and North Korea are making progress on a summit. Oil rebounded after U.S. crude stockpiles declined.
(CNBC) APRIL18, 2018 ---- Spot gold fell 0.2 percent to $1,344.20 per ounce at 0107 GMT, while U.S. gold futures for June delivery dipped 0.2 percent to $1,347.50 per ounce.
(CNBC) APRIL18, 2018 ---- Brent crude oil futures were at $71.90 per barrel at 0117 GMT, up 32 cents, or 0.5 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were up 33 cents, or 0.5 percent, at $66.85 a barrel.
USD/JPY PAIR ANALYSIS
1. Technical Overview
The pair has posted a lower low and a lower high daily basis for a third consecutive day, leaning the scale toward the downside, although with nothing yet to confirm a bearish breakout. Shorter term, and according to the 4 hours chart, the pair continues developing above its 100 and 200 SMA, with the shortest advancing above the largest, and currently acting as dynamic support around 106.60, but with technical indicators holding within negative territory, with limited downward strength, also skewing the risk toward the downside.
Support levels: 106.60 106.20 105.90
Resistance levels: 107.35 107.70 108.10
2. Fundamental Overview
Despite the greenback was mostly up across the board, the USD/JPY pair was unable to advance, still unable to move away from the 107.00 price zone. Stocks edged higher, US data mostly positive, and US Fed policymakers' rhetoric overall hawkish, yet none was enough to discourage yen bulls. In fact, the pair lost some additional ground late US session, as Wall Street retreated from its early peaks, while US Treasury yields softened, with the 10-year note yield down to 2.81% from the previous 2.83%. Japan will release its trade balance figures for March, with the total goods balance seen sharply up. Imports are expected to have grown 5.4% while exports are seen up 4.7%. (FXSTREET)
International & Financial Terms
1. Consumer Spending: Expenditure on goods and services for immediate consumption by households and an economic indicator.
2. Flow Of Funds: Analysis of the origin and use of funds in the different sectors of economy.
3. Competitive Devaluation: Devaluation designed to gain a competitive advantage in export markets.
4. Currency Basket: Cocktail of currencies in foreign exchange market.
5. Drawdown: Means to take up funds made available of financial institution.
Compiler: A Bank Dealing Room Section
Management of International Deputy The Expert In Charge Of Dealing Room