The Morning Update

Friday April 5^th,2024

The USD is trading lower, equity markets are up, oil prices are flat while treasury yields are up. Higher-than-expected US Jobless Claims figures raised concerns over the US labor market. Market now we await key US employment data later this morning. Expectation of a June rate hike remains high.

In other news.  Israel says it has approved the opening of two routes into Gaza to allow more humanitarian aid into the territory - a day after Biden/Netanyahu’s call. UN rights body demands Israel be held accountable for possible war crimes. Finland's government closed the land border crossings with Russia indefinitely. The Finnish government cited ‘instrumentalized migration as the reasons for the closings – a term used by the Russian’s strategy to send large numbers of migrant to destabilize the country.

In currency news. Bank of Japan hints at near-term rate hike, pushing yields higher. PM Kishida says excessive yen volatility undesirable and repeats warning by the finance minister that it will use all available means to deal with the falling JPY. While visiting China, Treasury secretary Yellen is warning of the risk to jobs and businesses posed by overproduction.The USD is flat against the JPY, while the AUD and NZD gained 0.10% against the USD. The MYRi s down 0.17% while the INR is up 0.05%. The trading currencies are up as we startt he day with the ZAR up 0.54% and the MXN 0.19%

Incommodity markets. After posting yet another all time high, gold prices retraced 0.2% as we await US economic data., Silver is off 0.6%. Copper prices fell by 0.6% Wheat and soybeans hedged higher in morning trading.

Currentlevel USDIndex               104.220            Up 0.09%

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The USD/CAD gains traction during the early European session as market are uneasy with the geopolitical situations and participants are using the flight to quality approach.

CurrentlevelUSD/CAD               1.3555            Up 0.11%

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Forthe fourth consecutive day the EUR/CAD is trending higher. Market seems reluctant to push higher than 1.4700 ahead of the US and Canadian employment data.

CurrentlevelEUR/CAD                1.4875            Up0.70%

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EUR/USD German industrial orders grew more slowly than expected showing that weak demand in the manufacturing sector continues to drag on Europe's biggest economy. Middle East tensions are pushing oil prices higher which could impact the Eurozone inflation figures in the coming months.

CurrentlevelEUR/USD                1.0834            Flat

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GBP/EUR is nearing a 2-month low. A more aggressive easing policy undermine the GBP.

Currentlevel GBP/EUR     1.1568 (0.8574)        Flat

‍The GBP/USD falls back as escalating geopolitical tensions and caution among market participants ahead of the US economic data set to be released later this morning.

CurrentlevelGBP/USD                1.2634            Downp0.05%

Otherccy levels vs C$. GBPCAD 1.7126  AUDCAD .8925  CADCHF.6661 CADJPY 111.39  CADTHB 27.02  CADCNY 5.3553  CADNOK 7.9025 CADSEK 7.484 CADDKK 5.0763  CADZAR 13.7220

Otherccy levels vs USD. JPY 151.35  CHF.9030  AUD.6583 NZD .6019  CNY7.2330  MXN 16.5526  INR 83.2896  PLN 3.9566 CZK 23.346 ZAR 18.6102  ILS 3.7393  AED 3.6717  KWD 0.30742

OtherMajor X levels. EURCHF.97.82  EURJPY 164.00  EURSEK 11.5313 EURNOK 11.6083 GBPCHF 1.1408  EURAUD 1.6452  GBPAUD 1.9184 AUDCHF.5946  AUDJPY 99.66  CHFJPY 167.50

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