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The euro was also bolstered by the
German April survey, with the current situation index rising to 40.7 from
37.6
But the aussie managed to claw back some losses (around 5%) and pushed
through 1.0400 against the dollar.
The IMF released its World Economic
Outlook report which indicated that the global economy is slowly improving
but warned that dangers remain.
Equity markets in Asia are following the
positive lead of US and European stock markets on the back of a reasonably
positive Spanish bill auction, strong Eurozone data, the IMF raising its
forecasts and a hawkish tone from the Bank of Canada.
The euro, however,
was broadly unchanged overnight, but price action was fairly choppy following
the German data and the Spanish bill auction.
The euro, however, was
broadly unchanged overnight, but price action was fairly choppy following the
German data and the Spanish bill auction.
;
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But the aussie managed to claw
back some losses (around 5%) and pushed through 1.0400 against the dollar.
UST yields are higher across the curve and 10-year yields are testing the
pivotal 2.00% level, and the dollar index is lower after being rejected from
bearish channel resistance yesterday.
The lack of market moving data may
keep a few investors in Asia on the sidelines given the nervousness in the
market surrounding tomorrow’s Spanish bond auction.
Sovereign yield spreads
eased after Spain had a better than expected bill auction and ECB officials
(Ordonez, Constancio) reaffirmed their confidence in Spain.
Gains in the FX
market were more muted than equities, with the dollar index barley falling
as investors clearly remain wary of risk currencies.
The improved
assessment helped to support overall risk sentiment.
Sentiment was broadly
higher and the dollar was mostly softer after positive developments in
Europe,
U.S. equities rallied sharply with the DJIA finishing up by about
+1.50% and the S&P 500 advancing by around +1.54% to close the day,
but we
are looking for confirmation from a break of the overnight high around 1.0420
before a technical push towards the 1.0450 level.
XAUUSD has traded in a
fairly tight range all week – except for a slid last night to around 1634.34
;
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Bye Bye