EUR/USD continues to grind higher, closes in on April highGold Technical Analysis – Safe haven flows boost the precious metalOil jump eases a little as traders deliberate Middle East tensionsHow have interest rates expectations changed after the US CPI report?China says have already issued some rare earth export licensesChina will always honour its commitments, says foreign ministryBoeing shares fall after plane crashes in IndiaUS embassy in Baghdad advises US citizens not to travel to IraqECB's Muller: Inflation likely to stay around 2% in the near futureECB's Schnabel: Monetary policy cycle is coming to an endMore from ECB's Schnabel: Eurozone core inflation still elevated, but on a good pathECB's Simkus: The ECB has arrived at neutral level of ratesECB's Villeroy: No fixed position on future rate decisionsUK April monthly GDP -0.3% vs -0.1% m/m expectedGerman economy now expected to grow by 0.3% this year - Ifo
Markets:
CHF leads, USD lags on the dayEuropean equities lower; S&P 500 futures down 0.6%US 10-year yields down 3.5 bps to 4.378%Gold up 0.7% to $3,376.19WTI crude down 1.9% to $66.83Bitcoin down 1.7% to $107,051China offered up very little details and only affirmed Trump's word that a deal is "done". The communication from Beijing was subtle but they ensured to refer to this as a 'framework' more than anything else. In any case, we're still yet to see their official take on the matter - if we will even get any.
Besides that, Middle East tensions continue to run high but the US and Iran will at least sit down on Sunday to talk again. So, that will hold off any major escalation in tensions at least until the weekend.
EUR/USD raced higher to briefly clip the 1.1600 level and is still holding around 1.1590 now, up 0.9% on the day. USD/JPY fell off to 143.75, down 0.5% on the day, while USD/CHF is marked down by 0.9% to 0.8130 as well.
The drop in the dollar comes alongside equities this time with European indices turning lower in morning trade. The DAX is down a little over 1% while the CAC 40 is down 0.7%. US futures were not spared as well with S&P 500 futures down 0.5% with the Dow down 0.6% as Boeing shares tumble after its 787 model - carried by Air India - suffered a tragic crash in Ahmedabad.
As traders digest the risk mood and Middle East tensions, oil is seen dropping back today while gold is pushing up and benefiting from the messy mix of developments. In the bond market, yields are all lower and that's reaffirming a more defensive risk approach as we get to US trading later.
This article was written by Justin Low at www.forexlive.com. Read More Details
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