JPY firmer following BoJ and equities trade mixed overnight

Published date: 25/04/2019

After the 3 main US bourses pulled away from their highs yesterday equity markets in the Asia Pac area traded mixed overnight. The Nikkei 225 (0.54%) and ASX (0.99%) traded well while the Shanghai Comp. lost 0.75% of its value. Overnight the BoJ also had their latest rate decision where unsurprisingly they stood pat on rates and made no changes to monetary policy. The Japanese Yen strengthened against some of its major counterparts as EUR/JPY, GBP/JPY and USDJPY all fell marginally. 

In commodities markets, the strong greenback looks to be hurting the majors. The DXY now trades at its highest level since May 2017 as its clearly the best of a bad bunch in terms of currencies and economic data from Europe does not seem to be improving. 

Having said that gold is managing to dig in and hold the $1275/oz handle overnight but if EU equities manage to rally we could see another drop again today. 

Copper is marginally lower this morning trading at $2.90/lb, apparently, there is some kind of slow progress in the US-China trade talk saga but nothing concrete is yet has come from the White House. The commodities markets are looking forward to China's PMI's next week for more clarity. 

Another build in inventory levels dampened the spirit of oil traders yesterday as spot WTI pulled away from best levels. Spot WTI now trades at $65.72/bbl after losing 0.59% in yesterday's session.

Today we are on the lookout for Riksbank rate decision, ECB economic bulletin, US core durable goods orders, NZ trade balance and ECB's de Guindos speaks. 


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