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25 Mar 2024

Waiting game

• Quiet start. Global equities mixed. Bond yields drifted higher. USD a little softer. AUD has clawed back a bit of ground over the past 24hrs.• CNH & JPY. Authorities in China have pushed back on recent CNH weakness. Rhetoric from Japanese officials about JPY weakness has also ramped up.• Data flow. US durable goods orders in focus tonight. Locally, the monthly CPI indicator is due tomorrow & retail sales are released on Thursday. It has been a typically quiet start to the holiday shortened week with limited new news over the past 24hrs. Most of the major global equity...

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Liquidity Ebbs Into Holiday-Shortened Week

The trade-weighted dollar is holding steady and equity futures are poised to open lower as market participants prepare for a lower-intensity, holiday-thinned trading week. Treasury yields are ticking higher, oil prices are up modestly, and risk-sensitive units like the Canadian dollar are trading sideways ahead of a week dominated by the release of the Federal Reserve’s preferred inflation indicator – when North American markets will be closed for Good Friday. Thin liquidity could boost the appeal of safe haven currencies in the days ahead, but some mean reversion could play out over a longer time horizon. With the global economy...

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