Morning Market Update – Yen Gains Strength

Asian Markets

The United States API Weekly Crude Oil Stock came up to 4.5M from a previous negative of 0.531M. Federal Reserve Bank President and CEO Dr. Mester expressed her concerns for a rate hike this March and wanted to see at least two-three rate hikes every year. Also, she said that the inflation rates will achieve the targeted value of 2% in the upcoming year.

Australia’s Westpac Leading Index (MoM) dropped down from a previous 0% to a negative of 0.1%. Japan’s imports (YoY) dropped to 1.2% in February versus the previous rate of 8.5% and Japan’s exports (YoY) rose to 11.3% in February versus the previous rate of 1.3%.

Japan’s Merchandise Trade Balance total rose to ¥813.4B in February versus the previous rate of ¥-1086.9B and Japan’s Adjusted Merchandise Trade Balance rose to ¥680.3B in February versus the previous rate of ¥155.5B. The Bank of Japan’s monetary policy minutes of meeting released this Wednesday morning. The meeting clearly indicated that the policymakers agreed on the price momentum which is not firm yet and they agreed to work for the 2% inflation target.

Other Markets

The All Industry Activity Index will be released shortly by the Ministry of Economy and the Trade and Industry for Japan will be released later for the day. The Trade and Industry reports are looking better from the previous month and stands at a value of 0.1% when compared to a negative of 0.3%.

All of the European Union (EU) leaders except Prime Minister Theresa May will soon be present in Italy for the 60^th celebrations of the Treaty of Rome. The anniversary celebrations are expected to be lively and eventful like every year and Rome suggests that this year will continue to be the same. However, the leaders of the EU are likely to plan proposals with respect to the Treaty of Rome amidst the celebrations.

With the UK preparing for its exit in the next few days, it has broken down Europe’s assumptions of a slow integration in the years to come. The nationalists will now look to decode the six years of progress.

The Housing Price Index released by the Federal Housing Finance Agency for the US continues to remain at 0.4%. The Existing Home Sales, released by the National Association of Realtor fell short when compared to the previous month and this should be a worry for the dollar. The EIA’s Crude Oil Stocks seems to be at its best for the day.

 
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