Date: APRIL28, 2018
Daily World Economic and Financial News
(CNBC) APRIL28, 2018 ---- The dollar held steady on Friday despite a government report showing slower first-quarter economic growth, with the currency on track to end its strongest week since November 2016, having gained 1.4 percent. On Tuesday, the U.S. benchmark government bond yield broke through the psychologically significant 3 percent level for the first time in more than four years as investors reduced their U.S. bond holdings on worries about rising inflation and growing government debt supply.While Friday extended the week's gains, the dollar's move was muted by comparison. It was last down 0.05 percent at 91.51 against a basket of six currencies, though still its highest since Jan. 12.
(CNBC) APRIL28, 2018 ---- Sterling was the biggest loser among major currencies on Friday as weaker-than-expected first-quarter growth numbers further whittled away at the likelihood of a rate hike next month. The pound fell as low as $1.375 against the dollar, more than 1 percent weaker, after data showed Britain's economy grew at its slowest pace since the fourth quarter of 2012. The dollar rose to a top of 109.53 yen Friday, the highest level since Feb. 8. It last exchanged hands down 0.22 percent at 109.05. The euro, in which speculators held record long positions, fell to $1.205 on Friday, its lowest since Jan. 12. It was last up 0.23 percent at 1.2129.
(CNBC) APRIL28, 2018 ---- Global benchmark Brent crude futures ended the day down 10 cents at $74.64 a barrel. This month, the global benchmark hit highs above $75, a level last seen in late 2014. U.S. West Texas Intermediate (WTI) crude finished Friday's session down 9 cents at $68.10 a barrel. Brent turned in a weekly gain of nearly 1 percent, while WTI fell by almost half a percent on the week.
(CNBC) APRIL28, 2018 ---- Gold edged higher on Friday after the dollar and U.S. Treasury yields backed off highs, but the prospect of a Korean denuclearization deal eroded bullion's safe-haven appeal. Spot gold gained 0.58 percent at $1,324.50 per ounce by 3:05 p.m. ET. U.S. gold futures settled up $5.50 for June delivery at $1,323.40 per ounce.
(REUTERS) APRIL28, 2018 ---- China’s yuan weakened against the dollar on Friday as a softer midpoint and a broadly stronger greenback put the local currency on track for its worst monthly performance in 1-1/2 years. The dollar held near a 3-1/2-month high against a basket of currencies on Friday morning, supported largely by a sharp jump in U.S. yields. [FRX/] The global dollar index, a gauge that measures the unit’s strength against six other currencies stood at 91.527 at midday after hitting a high of 91.637 overnight, its strongest level since mid-January.
(REUTERS) APRIL28, 2018 ---- The offshore yuan was trading 0.08 percent stronger than the onshore spot at 6.3306 per dollar. Offshore one-year non-deliverable forwards contracts (NDFs), considered the best available proxy for forward-looking market expectations of the yuan’s value, traded at 6.4395, 1.56 percent weaker than the midpoint. One-year NDFs are settled against the midpoint, not the spot rate.
USD/JPY PAIR ANALYSIS
EUR/USD technical outlook
The EUR/USD pair has broken through several major supports without blinking and has turned bearish long-term. The Fed will be the last challenge. The weekly chart shows that the pair not only slid below a daily ascendant trend line coming from last February but also below the 20 SMA for the first time this year. In the mentioned chart, technical indicators have entered bearish territory with strong downward slopes, opening doors for additional declines ahead. Furthermore, the pair is now trading below the 61.8% retracement of this year's rally at around 1.2160, now a major resistance level. In the daily chart, the pair fell to test its 200 DMA for the first time in over a year, posting a shallow bounce afterward. Still, the price is well below the 20 and 100 DMA, with the shortest now crossing below the larger one, both around 1.2290. Technical indicators in this last time frame have decelerated their declines after reaching oversold levels, but are giving no signs of changing course, probably meaning some consolidation ahead of the next directional move. Below the 1.2050/60r region, the 1.2000 figure comes next, while the next relevant support and a probable bearish target is 1.1880. Resistances this week come at the mentioned 1.2160 level, and the 1.2240 price zone, with gains above this last favoring a correction up to 1.2290, although chances of such recovery are quite a few. (FXSTREET)
International & Financial Terms
1. Assay: To test qualitatively and quantitatively the purity of metals.
2. Cash Commodity: Physical commodity.
3. Gold Loan: Loans whereby mining companies raise finance by borrowing gold.
4. Settlement Price: Average price at the close of the day`s trading in commodities.
5. Time Deposit: Bank deposit of fixed maturity.
Compiler: A Bank Dealing Room Section
Management of International Deputy The Expert In Charge Of Dealing Room