Daily Alert: Friday 28th April 2017

Mark NugentApril 2017, Daily Alert

Forex Analysis for Friday 28th April 2017

Economic Calendar

Thursday: ECB kept rates unchanged at 0.00%. Draghi says there is no need to discuss sequencing (hiking rates before the end of QE) at this time; ECB not sufficiently confident that inflation is on track. Draghi wraps up his opening statement as markets focus on his comments that risks to the downside are diminishing and are moving towards being more broadly balanced. Goes on to say net purchases of EUR 60bln/month to continue to end of 2017 or beyond if necessary and reiterates that rates will remain at present or lower levels for an extended period of time.

Friday (this morning): Tokyo Core CPI was still deflationary but beat expectation (-0.1% vs -0.2%).

Trump talks about conflict with North Korea, renegotiating NAFTA but says it will be difficult to reach agreement, threatens termination of South Korea trade deal and wants payment for the THAAD missile defence system there.

Market Reaction

The sentiment is neutral with the USD range-bound and the S&P flat. European equity indices were down and the Japan225 moved up but only slightly. Oil sticks firmly to support at under USD50/bbl and gold continued down. Draghi’s caution pulled the EUR down. The GBP continues to rise on the election news. JPY trades sideways. CAD drops on Trump’s NAFTA comments and NZD remains negatively impacted by the milk issue between the US and Canada which is seen to drive down global dairy prices.

News Media

Nothing not covered above.

Today’s Calendar

EUR CPI Flash; USD Advanced GDP, CAD GDP and GBP Prelim GDP.

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