 Dollar rises broadly in early US session as traders seem preparing for solid Q1 earnings reports in US. Stocks indices are relatively steady, though, with DOW, S&P 500 and NASDAQ up slightly in initial trading. But after all, improvement in the overall sentiments could revive the chance for a Fed hike later in the year. Also, recent surge in oil prices could eventually be fed into rise in core inflation, which is another factor for a Fed hike. Nevertheless, Q1 GDP report to be released on Friday would be the first make or break for the greenback. Staying in the currency markets, Yen is following Dollar as the second strongest one. Sterling is the third strongest for now. Swiss Franc is the weakest one as funds are flowing out from this safe haven, partly thanks to rally in oil prices. Australian Dollar is the second weakest, followed by New Zealand Dollar. Aussie will be vulnerable to steep selloff should CPI data featured in upcoming Asian session disappoints. Gold also breaks 1270 handle on Dollar strength. Technically, with break of 1.1226 temporary low, EUR/USD is heading towards 1.1176 key support and break will resume larger down trend from 1.2555. GBP/USD's break of 1.2960 support suggests earlier than expected near term reversal and turns outlook bearish for 1.2773 support. AUD/USD's accelerates downward towards 0.7052 support and break will solidify near term bearishness. USD/CAD, however, is still awaiting upside range breakout. In Europe, currently, FTSE is up 0.63%. DAX is down -0.09%. CAC is up 0.03%. German 10-year yield is up 0.0169 at 0.043. Earlier in Asia, Nikkei rose 0.19%. Hong Kong HSI dropped -0.00%. China Shanghai SSE dropped -0.51%.Singapore Strait Times dropped -0.13%. Japan 10-year yield dropped -0.0025 to -0.029. Released in US session, US house price index rose 0.3% mom in February, below expectation of 0.6% mom. New home sales rose to 692k in March, well above expectation of 647k. Canada wholesales sales rose 0.3% mom in February, above expectation of 0.1% mom. Eurozone consumer confidence dropped to -7.9 in April, below expectation of -7. |
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