FX News Today
- 10-year Treasury yields are down -1.1 bp and JGB yields dropped -1.7 bp to -0.038% as Asian stocks tumbled on growth concerns and pessimism on US-Sino relations, with markets worrying that there won’t be a trade deal in time to prevent another round of tariff hikes.
- Asked whether he would meet Chinese President Xi Jinping before the March 1 deadline US President Trump said “No”, before adding “unlikely”, although he suggested they would “maybe” meet later.
- Topix and Nikkei lost -1.86% and -1.96% respectively today. The Hang Seng fell back -0.215, after returning from holiday, while mainland China markets remained closed.
- The ASX is down after the RBA slashed its growth projection to 2.5% from 3.25% with its quarterly statement on monetary policy today. The CPI forecast was cut to 1.25%.
- Growth warnings in Europe yesterday saw European and US markets closing with broad losses. The negative growth backdrop and heightened risk aversion is keeping bond markets supported.
- Oil prices fell back to USD 52.26 per barrel.
- Fed’s Bullard promotes caution on balance sheet unwind. He declined to say how close the Fed is to ending balance sheet unwind process but said “We are closer than I thought we were a year ago”.
Charts of the Day
Main Macro Events Today
- Russia Interest Rate Decision – No surprises are expected from the Russian Central Bank which is expected to keep its interest rate at 7.75%.
- Canada Labour Market Data – Canadian data are expected to show a slight deterioration in the economy in January, as net change in employment is forecast to be lower than December while the unemployment rate is forecast to have grown to 5.7%, compared to 5.6% in December.
Support and Resistance
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Dr Nektarios Michail
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