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Asian equity markets are displaying mixed performance this morning, despite gains seen in European and US markets yesterday. Bank of Japan Governor Ueda stated that the BoJ will allow longer duration bond yields to be determined by markets and may reduce purchases at some point. In a continuation of yesterday’s monetary policy update, Bank of England Governor Bailey, in an FT article, indicated that interest rate cuts were under consideration, suggesting that markets are justified in anticipating multiple rate reductions this year.In today’s agenda, newly released UK retail sales data for February showed a 0.2% increase excluding fuel, with overall performance remaining flat. While this is notably less than January’s 3.6% monthly surge, it surpassed consensus expectations for a decline, adding to the evidence of a pick-up in economic activity this year. The GfK consumer confidence measure earlier this morning reported no change in its overall reading for March, yet consumers’ optimism regarding their future finances reached a two-year high. The CBI industrial trends survey will offer further insights into the UK factory sector conditions in March. While yesterday’s manufacturing PMI hinted at stabilization as the overall index hovered just below the 50 expansion/contraction threshold, the February CBI reading indicated a significant decline in orders. Observers await March’s data to assess any potential improvement. Additionally, February saw a rise in the selling price index, possibly reflecting supply chain disruptions from issues in the Red Sea. Hence, the latest update will be scrutinized for signs of whether this trend persisted.The German IFO survey, the final unofficial March update for the Eurozone this week, is anticipated today. Previous ZEW and PMI surveys suggested challenging current economic conditions but also expressed optimism for improvement throughout the year. Similarly, the IFO survey is expected to show a significant rise in the expectations index, albeit with a smaller increase in the current conditions measure.Stateside, there are no notable data releases scheduled on the docket. However, a couple of Federal Reserve policymakers will provide their perspectives on this week’s US monetary policy update. European Central Bank Chief Economist Lane is also slated to deliver a lecture on inflation, likely discussing the ongoing disinflation process in the Eurozone and potentially offering insights on the timing of interest rate adjustments in the region.
Overnight Newswire Updates of Note
(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
FX Options Expiries For 10am New York Cut (1BLN+ represent larger expiries, more magnetic when trading within daily ATR)
CFTC Data As Of 15/03/24
Technical & Trade ViewsSP500 Bullish Above Bearish Below 5200
EURUSD Bullish Above Bearish Below 1.0940
GBPUSD Bullish Above Bearish Below 1.2740
USDJPY Bullish Above Bearish Below 150.25
AUDUSD Bullish Above Bearish Below .6570
BTCUSD Bullish Above Bearish below 68900
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