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Asian equities saw gains today following strong US tech earnings, rebounding from yesterday’s sell-off in both US equities and bonds triggered by Q1 GDP data showing slower growth and stronger inflation than anticipated. Overnight, the Bank of Japan kept short-term interest rates unchanged, as expected, maintaining them in the 0%-0.1% range after shifting them out of negative territory last month.UK GfK consumer confidence for April was released earlier, with the headline index rising to -19 from -21, slightly surpassing forecasts. This uptrend over the past year suggests modest improvements in consumer fundamentals, supported by peaking interest rates and real wage growth. Eurozone money supply and credit growth data, expected to confirm subdued credit dynamics due to past monetary policy tightening, will be released alongside the ECB’s consumer expectations survey, offering insights into household inflation expectations.Stateside, the focal point of the day will be the US PCE inflation figures for March, following yesterday’s Q1 GDP report, which revealed weaker-than-expected growth but stronger core PCE inflation, indicating potential upside risks to March’s inflation data. This may also entail upward revisions to January and February figures. Consequently, look for the March core PCE deflator at 0.4%m/m, higher than the consensus of 0.3%m/m. Despite disappointing GDP growth, this inflationary pressure suggests the Fed may hesitate to implement interest rate cuts.
Overnight Newswire Updates of Note
(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
FX Options Expiries For 10am New York Cut (1BLN+ represent larger expiries, more magnetic when trading within daily ATR)
CFTC Data As Of 19/04/24
Technical & Trade ViewsSP500 Bullish Above Bearish Below 5070
EURUSD Bullish Above Bearish Below 1.0720
GBPUSD Bullish Above Bearish Below 1.24
USDJPY Bullish Above Bearish Below 154.60
XAUUSD Bullish Above Bearish Below 2379
BTCUSD Bullish Above Bearish below 62000
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