Morning Market Update – Market Remains Calm

Asian Markets

China’s National Bureau of Statistics data released today and showed that the world’s second largest economy expanded by 6.9% in the first quarter of 2017. China’s Q1 2017 GDP q/y grew by 6.9% above the 6.8% rise as forecasted by the markets. On an annualized basis, China’s GDP came at 19% when compared to the previous 1.7% growth.

The People’s Bank of China set the USD/CNY pair at 6.8785 versus yesterday’s fix of 6.8740. The only major news coming up for the day is the speech from Bank of Japan’s Governor Kuroda.  Being an Easter Monday, we have the NAHB Housing Market Index with no major events and we expect the market to remain calm for the day.

Other Markets

The US dollar continues to remain under pressure with Trump’s new administrative and economic policies which increases the demand for safe-havens such as gold. The stand-off between the US and North Korea continued to remain even after its failed missile launch on Sunday. US President Donald Trump’s National Security Adviser H.R. McMaster mentioned in a statement that “We are working together with our allies and partners and with the Chinese leadership to develop a range of options.”

We expect the heightened geopolitical tensions to boost the traditional safe havens throughout this week.

 
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