Greenback Slightly Weakened, Overshadowed By Yen
Japanese Yen is now trading as the strongest currency while the greenback has mildly weakened. The Pound is trading as the softest, followed by Aussie. DOW declined -380.83 (-1.5%) to 25022.42. Today is the second round of Jerome Powell’s testimony. But, the reaction is likely to be muted. 464,000 Social-Democratic party members voted on reforming the Grand coalition with Christian Democratic Union and Christian Social Union. Initial results show that only 56% of members voted in favor. Final results will be release on Sunday.
Theresa May (Britain’s Prime Minister) and Donald Tusk (European Council President) are about to discuss the future of UK-EU relationship. As we already know, UK Prime Minister criticized EU draft Brexit treaty, as the document suggested common regulatory area that will maintain Northern Ireland in a customs union. Theresa May is planning to express her objection to the European Council President.
Japanese capital spending increased 4.3% in the fourth quarter. PMI manufacturing was lifted to 54.1 in February. The Caixin China PMI manufacturing was up 0.1 to 51.6. Australian PCE fell -0.2% in the fourth quarter. New Zealand terms of trade reduced -0.2% qoq. Today, we’ll get Swiss Gross Domestic Product, retail sales and PMI manufacturing, Eurozone PMI manufacturing revision and unemployment rate, British PMI manufacturing, M4 and mortgage approvals. Additionally, the US will present personal income and spending, unemployment claims, construction spending and ISM manufacturing and Canada will publish current account and PMI manufacturing.