Is the World Ready for Stronger Chinese GDP Data?

On Tuesday, the market will have the opportunity to see the true pace of the much-talked Chinese reopening as we get a plethora of key Chinese economic data. While a stronger set of data releases will be positive for the global growth outlook, are central banks ready for news that could potentially mean that the acute inflationary pressures might be resurfacing?

Pound Traders Lock Their Gaze on the UK Inflation Data

With inflation in double digits, the BoE is among the few major central banks that are not expected to push the cut button during 2023. With that in mind, pound traders may pay close attention to the UK CPI figures for March, due out on Wednesday at 06:00 GMT. Will the March numbers add credence to expectations of more hikes by the BoE? And what will they mean for the pound?

Canada March Jobs Figures

There are two key fundamental aspects that are pushing the USDCAD in opposite directions. Which one is stronger and which will win out will depend on the evolution of both economic data and political events. Therefore, we could see some increased fluctuation in the currency pair over the coming months. And tomorrow there is the release of some crucial economic data that could have an impact on future expectations.

Sunset Market Commentary

The dollar limits losses given the size of the yield correction. EUR/USD left intraday lows around 1.0935 ahead of the ADP release to currently change hands at 1.096. The YtD high at 1.1033 for now isn’t being tested but markets are probably on the lookout for the services ISM.

Cliff Notes: Asia Shows its Strength as US Growth Prospects Dwindle

In Australia, the RBA was the key focus of market participants. Offshore, the RBNZ asserted their hawkish resolve while US data weakened noticeably.

Treasuries Up, Stocks Down on Mounting Recession Odds

Yesterday was a typical risk-off day in the financial markets. The US treasuries rallied, the yields fell, and the stocks fell as well, as the latest set of economic data from the US showed further weakness.

Markets Aren't Too Worried About Future Inflation Risks

Markets aren’t too worried about future inflation risks and bank on short term economic support from the Fed, something they got used to over the past decade. US Treasury yields ended 4.5 bps (2-yr) to 1.8 bps (5-yr) lower.

Resting Bitcoin

The crypto market lost 1.4% overnight to $1.19 trillion. Bitcoin, down 1.6% at $28K, once again underperformed the market. Ethereum fell just over 1% to $1890. This Bitcoin dynamic can be attributed to its outperformance in the March episode of capital flight from banks. That money is now neatly parked elsewhere while Bitcoin is “resting”.

Canada's Labour Market Surges Again 

The Canadian labour market added 35k positions in March, with full-time employment up 18.8k and part-time employment up 15.9k.

Sunset Market Commentary

Markets Monday: manufacturing ISM. Tuesday: JOLTS job openings. Wednesday: ADP employment change & non-manufacturing ISM. Today: weekly jobless claims. Four in a row when it comes to disappointing US eco data. Four in a row as well when it comes to a (positive) reaction from US Treasuries. Even on today’s mostly ignored weekly jobless claims […]