Market Roundup
• US Jobless claims 257k v 245k forecast, 243k previous, continuing claims 1.988m v 2.005m forecast, 1.978m previous.
• US Durable goods +0.7% v 1.2% forecast, 2.3% previous; non-defense Cap ex-air (core) 0.2% V 0.5% forecast, 0.1% previous.
• US Pending home sales -0.8% v -1% forecast 5.5% previous.
• Atlanta Fed: The final GDPNow model forecast for GDP growth in Q1 ‘17 is 0.2% on April 27, down from 0.5%t on April 18.
• US. Congress takes steps to push budget deadline to May 5, avert shutdown.
• Trump tells Canada, Mexico, he won't terminate NAFTA treaty yet-White House.
• ECB holds rates, keeps bias for further policy easing, nods to euro zone recovery, downside risks diminishing; some GC members sanguine about growth; underlying inflation pressures subdued.
• Dovish Swedish Riksbank holds rates, extends bond purchases.
• Eurozone economic sentiment rises to near 10-yr high; German inflation surpasses ECB target in April.
• UK retail sales expand in April at fastest pace since Sept 2015 – CBI.
• Moody's: UK economy holding up well, despite emerging signs of softer consumption and housing market activity.
Looking Ahead - Economic Data (GMT)
• 22:45 New Zealand Building Consents MM Mar 14%-previous
• 22:45 New Zealand Trade - Imports* Mar 4.02b- previous
• 22:45 New Zealand Trade Balance* Mar -18.0m- previous
• 22:45 New Zealand Trade Balance YY* Mar -3.79b- previous
• 22:45 New Zealand Trade - Exports* Mar 4.01b- previous
• 23:30 Japan All Household Spending YY* Mar forecast -0.3%, -3.8%- previous
• 23:30 Japan CPI, Core Nationwide YY Mar forecast 0.3%, 0.2%- previous
• 23:30 Japan CPI, Overall Nationwide* Mar 0.3%- previous
• 23:30 Japan Unemployment Rate Mar forecast 2.9%, 2.8%- previous
• 23:50 Japan Industrial Output Prelim MM Mar forecast -0.8%, 3.2%- previous
• 23:50 Japan Retail Sales YY Mar forecast 1.5%, 0.1%- previous
• 05:00 Japan Construction Orders YY* Mar 5.7%- previous
• 05:00 Japan Housing Starts YY* Mar forecast -2.4%, -2.6%- previous
• 01:30 Australia PPI QQ* Q1 0.5%- previous
• 01:30 Australia PPI YY* Q1 0.7%- previous
• 01:30 Australia Private Sector Credit MM* Mar 0.3%- previous
• 01:30 Australia Housing Credit MM* Mar 0.6%- previous
Looking Ahead - Events, Other Releases (GMT)
• No Significant Events
Currency Summaries
EUR/USD is likely to find support at 1.0840 levels and currently trading at 1.0880 levels. The pair has made session high at 1.0896 and hit lows at 1.0850 levels. Euro declined against the dollar on Thursday after European Central Bank chief Mario Draghi said policymakers did not discuss removing the bank's easing bias on monetary policy. As widely expected, the ECB made no changes to its record- low-interest rates or stimulus program. The euro initially rose to a session high of $1.0932 on language in the ECB's statement, read by Draghi, which said the euro zone's recovery was increasingly solid and downside risks had diminished. But other parts of the statement and Draghi's replies to questions stressed the barriers the ECB still faces before beginning to tighten the ultra-loose financing conditions it has maintained for nine years. The dollar index, which measures the greenback against a basket of six major rivals, was last up 0.2 percent at 99.209. The euro was last down 0.3 percent against the dollar at $1.0872, near a session low of $1.0852.
GBP/USD is supported in the range of 1.2858 levels and currently trading at 1.2915 levels. It reached session high at 1.2917 and dropped to session low at 1.2861 levels. Britain's pound gained against the dollar on Thursday as risk sentiment remained fragile after much-awaited tax reform plans from U.S. President Donald Trump did not boost investor confidence as expected. Trump's proposal to slash tax rates for businesses and on overseas corporate profits returned to the U.S. didn't excite the markets, as it failed to offer details on how it would be paid for without increasing the country's deficit. The pound rose by as much as 4 cents when May announced the election nine days ago, but investors have looked unsure about driving the pound higher in the days since. Over the past 12 years, sterling has risen by an average of 2.3 percent every April. It is up around 2.5 percent for the month so far. Sterling climbed 0.3 percent against the dollar at $1.2886 and was last trading at 1.2908 in the late US Session.
USD/CAD is supported at 1.3562 levels and is trading at 1.3618 levels. It has made session high at 1.3669 and lows at 1.3587 levels. The Canadian dollar hit a 14-month low against its U.S. counterpart on Thursday before recovering some ground against the U.S. dollar after U.S. President Donald Trump told Canada and Mexico that renegotiating the North American Free Trade Agreement was possible. The currency had fallen on Wednesday after a U.S. official said the White House was considering a draft executive order to withdraw from NAFTA, which binds the United States, Canada and Mexico. However, the loonie's slight gain was tempered by a sharp fall in prices for oil, a major Canadian export. Oil prices renewed their slump after news that two key oilfields in Libya had restarted, pumping crude for export into an already swollen market. Brent crude is on track for its seventh decline in nine sessions. The Canadian dollar was last trading at C$1.3627 to the greenback, weaker than the Bank of Canada's official Wednesday close of C$1.3612.
USD/JPY is supported around 110.90 levels and currently trading at 111.16 levels. It peaked to hit session high at 111.59 and made session lows at 111.00 levels. The U.S. dollar dipped against the Japanese yen on Thursday as investors sought safety in the face of doubts about President Donald Trump's unimpressive tax plan and persistent geopolitical tensions in North Korea and Syria. Investors were concerned that Trump's tax reform package that could get derailed once again. Trump on Wednesday unveiled a one-page plan proposing deep tax cuts, many for businesses, that would make the federal deficit balloon if enacted, far short of comprehensive reforms both parties in Washington have sought for years. Russia's warnings that the North Korean situation has gotten a lot worse also drove bids for safe-haven assets. The dollar was last 0.1 percent higher against the yen at 111.18 yen after rising as much as 0.5 percent to a session high of 111.59.
Equities Recap
European shares fell from 20-month highs on Thursday as weaker banks weighed, with the broader market little moved by a widely expected European Central Bank decision to stand pat on policy.
UK's benchmark FTSE 100 closed down by 0. 8 percent, FTSEurofirst 300 ended the day down by 0.26 percent, Germany's Dax ended down by 0.2 percent, France’s CAC finished the day down by 0.4 percent.
The Nasdaq Composite ended at a record high on Thursday, boosted by results-related gains in Comcast, PayPal and Intuit, while the S&P 500 and the Dow were little changed.
Dow Jones closed up by 0.04 percent, S&P 500 up down 0.06 percent, Nasdaq finished the day up by 0.41 percent.
Treasuries Recap
U.S. Treasury prices rose on Thursday, as investors sought the safety of bonds in the face of doubts about President Donald Trump's unimpressive tax plan and persistent geopolitical tensions in North Korea and Syria.
In late trading, benchmark 10-year notes were up 4/32 in price to yield 2.294 percent, down from 2.311 percent late Wednesday.
U.S. 30-year bond prices rose 4/32, yielding 2.962 percent, lower than Wednesday's 2.97 percent.
Commodities Recap
Gold resumed its downward slide from a five-month high in mid-April, giving up gains that came after U.S. President Donald Trump announced unfunded tax cuts.
Spot gold was down 0.3 percent at $1,265.21 an ounce by 3:09 p.m. EDT (1909 GMT), while U.S. gold futures settled up 0.1 percent at $1,265.90.
Crude prices fell more than 1 percent on Thursday as the restart of two key oilfields in Libya pumped more crude into an already bloated market.
U.S. crude settled down 1.3 percent at $48.97 per barrel and Brent settled off 0.7 percent at $51.44 on the day.
