Market Roundup
- Japan Jan core CPI +0.9% y/y, +0.8% eyed, best rate since July ’14, overall +1.4%.
- New Zealand Q4 Retail sales volumes q/q, 1.70% vs 0.20%.
- Japan DepPM/FinMin Aso – Important for BoJ maintain current policy framework.
- Trump administration to target North Korea with new sanctions on Friday.
- Fed's Kaplan says three rate hikes in 2018 'reasonable'.
- U.S. defence department says prefers targeted steel, aluminum tariffs.
- Australian deputy prime minister resigns after affair with staffer.
- Regulator in China seizes control of Anbang as chairman prosecuted.
- ECB/Belgian CB Smets – Strong EUR point of attention for ECB.
- After war cabinet, Britain's May to set out "way forward" on Brexit.
- U.S. fund investors creep back in to market –Lipper.
- Foreign CB US debt holdings +$13,785 bln to $3.412 trln Feb 21 week.
- Treasuries +$12,754 bln to $3.069 trln, agencies -$417 mln to $262.106 bln.
Economic Data Ahead
- (0200 ET/0700 GMT) Germany Q4 GDP q/q SA, 0.6% eyed, 0.7% previous.
- (0200 ET/0700 GMT) Germany Q4 GDP y/y NSA, 2.3% eyed, 2.2% previous.
- (0500 ET/1000 GMT) EU Jan Inflation final, -0.9% m/m, 1.3% y/y eyed; 0.4%, 1.3% previous.
- (0500 ET/1000 GMT) EU Jan Inflation ex-food & energy, -1.6% m/m, 1.0% y/y eyed; 0.4%, 1.2% previous.
Key Events Ahead
- (0330 ET/0830 GMT) Swedish Central Bank publishes minutes of its monetary policy meeting.
- (0515 ET/1015 GMT) Italy E1.5-2.0/E1.5-2.0/E1.5-2.0/ for 1/3/10 year auction.
- (0605 ET/1105 GMT) UK Stg 500 mln/Stg 500 mln/Stg 2.0 bln for 1/3/6 month auction.
- (0700 ET/1200 GMT) BOE Deputy Governor Dave Ramsden speaks in London.
- (1015 ET/1515 GMT) NY Fed President Dudley and Boston Fed President Rosengren speak in New York.
FX Recap
USD: The dollar index against a basket of six major currencies rose 0.2 percent to 89.865. The index had reached a 10-day high of 90.235 on Thursday, from a three-year trough of 88.253 late last week, before its rally lost a bit of steam. It was on still on track to gain 0.9 percent on the week.
EUR/USD: The euro slipped 0.2 percent to $1.2295 after gaining 0.4 percent the previous day. The common currency has lost 0.9 percent so far this week, following its ascent to a three-year top of $1.2556 on Feb 16. Intraday bias remains slightly bearish till the time pair holds key resistance at 1.2330 mark. Initial resistance levels are seen at $1.2412 and $1.2555 marks respectively. On the other side, key support level is seen at $1.2205 mark.
USD/JPY: The yen trades marginally lower after mixed economic data. It made intraday high at 107.03 and low at 106.65 levels. A sustained close above 106.75 is required to take the parity higher towards key resistances around 107.90, 108.70, 110.48 and 112.96 marks. Alternatively, a daily close below 106.75 will drag the parity down towards key supports around 106.10, 105.55, 103.20 and 101.45 marks respectively.
GBP/USD: The pound was a shade lower at $1.3947 following overnight gains of 0.3 percent. Sterling was en route for a weekly loss of about 0.5 percent. On the top side key resistance was seen at $1.4010 and support was seen at $1.3765 mark.
AUD/USD: The Australian dollar slipped 0.2 percent to $0.7827, not far from a 1-1/2 month trough of $0.7756 set in early February. For the week, it is down around 1 percent. It faces stiff chart resistance at $0.7884 and $0.7988. Alternatively, key support level was seen at $0.7750 mark.
NZD/USD: The New Zealand dollar fell 0.5 percent to $0.7289, a level not seen since Feb 13. The kiwi has fallen in four out of the last five sessions and is set for its worst weekly showing since mid-November.
Equities Recap
Shanghai composite index to open up 0.2 pct at 3,275.43 points and China's CSI300 index to open up 0.2 pct at 4,061.75 points.
Japan’s Nikkei was trading 0.46 pct higher at 21,835.00 points.
Australia’s S&P/ASX200 was trading 0.82 pct higher at 5,999.90 points.
Hong Kong’s Hang seng was trading 0.90 pct higher at 31,245.50 points.
South Korea’s Kospi was trading 1.11 percent lower at 2,441.23 points.
India’s NSE Nifty was trading around 0.37 percent higher at 10,420.70 points and BSE Sensex was trading at 0.40 percent higher at 33,944.64 points.
Taiwan’s stock was trading around 0.95 pct higher at 10,763.43 points.
Commodities Recap
Oil prices dipped on Friday as high U.S. crude exports outweighed lower crude inventories in the world's biggest consumer of the fuel. U.S. West Texas Intermediate (WTI) crude futures were at $62.73 a barrel at 0449 GMT, down 4 cents from their last settlement. Brent crude futures were down 6 cents at $66.33 a barrel.
Gold prices slipped on Friday and were headed for their sharpest weekly drop in 2-1/2 months as the dollar strengthened during the week. Spot gold was down 0.2 percent at $1,328.90 an ounce as of 0338 GMT, heading for a fifth session of fall in six. It has shed 1.4 percent so far this week, its biggest since the week ended Dec. 8, 2017. U.S. gold futures were down 0.1 percent at $1,331.2 per ounce.
Treasuries Recap
New Zealand government bonds were barely changed.
Australian government bond futures gained, with the three-year bond contract up 2.5 ticks at 97.895. The 10 - year contract inched 3.5 ticks higher to 97.1700.
10-year U.S. treasury yield was at 2.929 percent vs U.S. close of 2.917 percent on Thursday.
