Gold thrives as stagflationary risks continue to increaseThe gold train marches on for nowUSD/JPY slides lower as risk aversion grips markets to start the weekTraders increase easing expectations for all central banks amid the global growth fearsFrance's Le Pen found guilty in case over misuse of parliamentary fundsFrance's Le Pen reportedly receives immediate election banECB president Lagarde: We're almost at our inflation targetECB's Panetta: The fight against inflation cannot be considered overBavaria March CPI +2.3% vs +2.4% y/y priorItaly February preliminary CPI +2.0% vs +1.6% y/y expectedGermany February import price index +0.3% vs 0.0% m/m expectedGermany February retail sales +0.8% vs 0.0% m/m expectedUK February mortgage approvals 65.5k vs 65.6k expectedNo Putin-Trump call scheduled so far for this week
Markets:
JPY leads, AUD and NZD lag on the dayEuropean equities lower; S&P 500 futures down 1.2%US 10-year yields down 6.9 bps to 4.186%Gold up 1.0% to $3,113.42WTI crude up 0.1% to $69.43Bitcoin down 0.5% to $81,961That kept risk sentiment on the defensive right from the get go and things stuck that way in European morning trade as well.
In FX, the Japanese yen is the main beneficiary amid a bid in bonds as well. 10-year Treasury yields are down nearly 7 bps and that's dragging down yen pairs to start the week. USD/JPY itself is also down 0.4% to 149.25 currently but fell to a low of 148.70 earlier in the session.
As traders look to traditional safe haven assets like the yen and bonds, gold is also another big beneficiary from all this. The precious metal climbed to a high of $3,128 at one stage but is still seen up 1% on the day to $3,113 at the moment.
And there was also inflation data from Germany and Italy. The former showed some stickiness in price pressures while headline numbers in the latter also jumped higher. However, Italian core inflation remained unchanged in February and still kept under 2%. So, that offers some comfort to the ECB after the softer French and Spanish readings last week.
This article was written by Justin Low at www.forexlive.com. Read More Details
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