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  • richard evans

Positive start for stocks after long weekend

Good morning

A few heavy heads in the Evans household this morning after celebrating my eldest’s 19th birthday. It was only going to be a few drinks with some of his mates but turned into a rather long and late party. All very good fun I have to say, but I’m suffering a bit today. A great way to end the long weekend though.

Fridays seems a long time ago now, most people were enjoying some of the splendid weather we had over the holidays, but the US were still beavering away and the release of the US nonfarm payrolls did send USD a bit higher with GBPUSD trading down to 1.2390 and EURUSD to 1.0875 after the release although both pairs traded a bit higher soon after.

Another bout of USD strength sent those two to 1.2345 and 1.0830 yesterday, led by USDJPY buying after incoming BoJ Gov Ueda said it was appropriate to continue with the easy monetary policy at this time. He did say that if the economy improves significantly there may be room to adjust policy but added that BoJ wants to avoid rapid major changes in policy. USDJPY moved up from 132.00 to 133.85, now 133.05 with GBPJPY up at 165.45 from a low last week around 162.80.

US dollar hasn’t been able to hold those gains, particularly against GBP and EUR which currently trade 1.2425 and 1.0900 respectively, BlackRock’s suggestion that Fed may look to keep rates on hold in May seems to have triggered some USD selling.

Not a lot of data out today, really just EU retail sales and then a few Fed speakers this evening. European stocks are in positive territory following similar moves in Asia markets overnight. I wouldn’t be surprised to see markets fairly rangebound ahead of tomorrows all-important US inflation release.

I mentioned the weather we enjoyed over the weekend, temperatures were well up and the sun was shining. We had a bit of heavy rain yesterday but it then turned quite pleasant ans looking out of the window this morning I see blue skies with just a couple of clouds. Forecast suggests a fair amunt of rain later so enjoy the sun while it lasts. Next week could see temperatures up to around 20 degrees. Can’t wait.

- 10.00 EU retail sales

- 18.30 Feds Goolsbee speaks

- 21.00 Feds Harker speaks

- 00.30 Feds Kashkari speaks

- 05.45 RBAs Bullock speaks

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