Pound Grew as Britain Could Remain in Custom Union

Market Reviews

US treasury yields keep rising as 10 year yield reached the maximum of 3.109. The dollar is pretty soft while the Pound has broadly gained, becoming the firmest currency of the week. This came as a reaction to the news that Britain might stay in customs union after Brexit, and beyond 2021. Loonie is boosted as WTI crude oil is holding over 71.5 handle. The single currency is so far the softest after yesterday’s shocking news from Italy.

House Speaker Paul Ryan told that today was the last day the Congress has to receive a notification of a NAFTA deal, if it is to pass it during 2018. BoC Governing Council Member said the ambiguity around the NAFTA renegotiation was interfering with companies’ investment decisions. Meanwhile, Japan is getting ready for retaliation versus US tariffs and finishing final arrangements to notify the World Trade Organization. Some even speculate that Japan will impose tariffs on US imports worth 409 million dollars.

Australian employment market rose 22.6 thousand in prior month. Full time employment increased 32.7 thousand. Part time jobs fell -10 thousand. Jobless rate was up 0.1% to 5.6%. Participation rate lifted to maximum of 65.6%. Consumer inflation expectation grew to 3.7% this month. New Zealand Purchasing Price Index input reduced to 0.6% qoq in the first quarter. Purchasing Price Index output fell to 0.2% qoq. Japanese machine orders were down -3.9% mom in March. Today’s data marks US unemployment claims, Philly Fed survey and leading indicator, as well as Canadian international securities transactions.