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6 May 2015
Higher oil boosts RUB, USD slightly weak - TDS
FXStreet (Barcelona) - Paul Fage, Senior Emerging Markets Strategist at TD Securities, summarizes the performance in developed and emerging markets during the European trade.
Key Quotes
“DM FX mainly unchanged or slightly stronger against USD. GBP is virtually unchanged, with better than expected Services PMI data giving it only a small lift. Attention is now very much on the far-from-certain outcome of tomorrow’s UK elections.”
“NZD stands out as the sole G10 underperformer versus USD. Market expectations for the RBNZ to cut mid-year have increased to 50% by July, following yesterday’s softer unemployment and wages data.”
“Higher oil prices have caused RUB and MYR to be the best performers in EM FX. At today’s Polish MPC meeting the unanimous consensus is for no change in rates. EURPLN is up 0.65% to 4.05. Romania unexpectedly cut its policy rate by 25 bps to 1.75%, but impact on EURRON was muted. TRY has made new lows against USD and the basket.”
“Asian equity markets mainly weaker, with Shanghai –1.6%, Sensex –2.7%, but Nikkei +0.1%. European equity markets are mainly stronger with Dax +0.8%. Brent Oil is up 2.2%. Base metals are mixed, precious metals are weaker.”
“Fixed Income was down pretty much across the board early this morning, but has since recovered most of the losses as bunds and gilts both respect key technical levels for now.”
“With a clear congestion of technical levels for fixed income, EURUSD, and DXY at current levels, and key event risk this week across the UK election and US payrolls, these levels may be the last best chance to prevent rates from moving into a new, higher trading range rather than simply test the upper limits of the current range.”
Key Quotes
“DM FX mainly unchanged or slightly stronger against USD. GBP is virtually unchanged, with better than expected Services PMI data giving it only a small lift. Attention is now very much on the far-from-certain outcome of tomorrow’s UK elections.”
“NZD stands out as the sole G10 underperformer versus USD. Market expectations for the RBNZ to cut mid-year have increased to 50% by July, following yesterday’s softer unemployment and wages data.”
“Higher oil prices have caused RUB and MYR to be the best performers in EM FX. At today’s Polish MPC meeting the unanimous consensus is for no change in rates. EURPLN is up 0.65% to 4.05. Romania unexpectedly cut its policy rate by 25 bps to 1.75%, but impact on EURRON was muted. TRY has made new lows against USD and the basket.”
“Asian equity markets mainly weaker, with Shanghai –1.6%, Sensex –2.7%, but Nikkei +0.1%. European equity markets are mainly stronger with Dax +0.8%. Brent Oil is up 2.2%. Base metals are mixed, precious metals are weaker.”
“Fixed Income was down pretty much across the board early this morning, but has since recovered most of the losses as bunds and gilts both respect key technical levels for now.”
“With a clear congestion of technical levels for fixed income, EURUSD, and DXY at current levels, and key event risk this week across the UK election and US payrolls, these levels may be the last best chance to prevent rates from moving into a new, higher trading range rather than simply test the upper limits of the current range.”