U.S 10-Year Yields Hit 3

Earlier in the Day:

There were no material stats scheduled for release through the Asian session this morning, leaving the markets to consider the continued rise in U.S Treasury yields and the impact on the global equity markets and risk sentiment.

Volumes through the day will be on the lighter side, with the Australian and New Zealand markets closed for the day to commemorate ANZAC Day.

At the time of writing, the Japanese Yen continued to move in reverse, down 0.07% to ¥108.9 against the U.S Dollar at the time of writing, with Treasury yields and expectations of a dovish BoJ doing the job.

For the Aussie Dollar and Kiwi Dollar, a reverse in commodity prices and shift in market risk appetite weighed, with the Aussie Dollar down 0.08% to $0.7598 at the time of writing and the Kiwi Dollar down 0.15% to $0.7109.

For the day ahead, a further build-up of market risk aversion could see commodity prices and the Aussie and Kiwi Dollar take more of a hit, with monetary policy divergence doing few favours for the pair.

The Day Ahead:

For the EUR, economic data out of the Eurozone is limited to job seeker figures out of France that is unlikely to have a material impact on the EUR, with the markets now focussing on tomorrow’s ECB monetary policy decision and, more importantly, the ECB press conference where Draghi could give the EUR another hit.

U.S Treasury yields hitting 3% did little to hold the EUR back from an intraday gain on Tuesday, with geo-political risk on the rise again over Iran, while a sell-off in the U.S session saw the slide in risk appetite support the EUR, though support is likely to be short lived when considering what’s to come at tomorrow’s ECB press conference.

At the time of writing, the EUR was down 0.03% to $1.223, market risk appetite and noise from the Oval Office the key drivers for the day.

For the Pound, it’s a quiet day on the data front, leaving the Pound in the hands of UK politics and any chatter from Brussels on Brexit, Theresa May clinging on to the top spot for now.

At the time of writing, the Pound was up 0.01% to $1.3942, with Brexit chatter the key driver through the day and there’s not been much positive news coming out of the UK or Brussels on Brexit of late. For any hopes of a rebound, there’s going to need to be a shift in sentiment towards the May BoE monetary policy decision, though Brexit is going to be an issue unless the EU holds out an olive branch

Across the Pond, there are no material stats scheduled for release, which will leave the Dollar in the hands of the Trump administration. Geo-political risk will certainly be a factor today, while U.S 10-year Treasury yields hitting 3% was the main event of the week so far. The moves saw the U.S equity markets reverse in spite of upbeat economic data, with the Dollar easing in spite of the markets prepped and ready for a more aggressive FED.

At the time of writing, the Dollar Spot Index was up 0.08% to $90.839, the Dollar having eased on Tuesday in spite of yields hitting 3%.