GBP

• Negative vibes. Growth concerns and renewed banking sector worries weighed on risk sentiment. Equities, bond yields, and commodities lower.• AUD under pressure. The backdrop has supported the USD and JPY, and helped push AUD/USD down to within 1% of its 2023 low.• CPI in focus. Australia Q1 CPI released today. Annual inflation predicted to slow. This is the last major local release ahead of the 2 May RBA meeting. Risk sentiment soured overnight as growth concerns and renewed banking sector nerves weighed on investors’ minds. Banking stocks were dragged lower, firstly in Europe by some disappointing results, and then...

• Hot UK CPI. Higher than expected UK CPI boosted bond yields overnight. Markets are now factoring in a few more BoE rate hikes this year.• NZ inflation slows. NZ CPI came in below expectations. NZD dipped and AUD/NZD moved higher as markets question the RBNZ rate outlook.• AUD holding. AUD hovering just above $0.67. RBA review to be released today. US Fed speakers are also on the calendar over the next 24hrs. The rebound in global bond yields has continued, with Europe leading the way. Another hotter than expected UK CPI print, the only major economic data of note...

• Calm markets. Limited moves across markets. The USD gave back a little ground. US Fed speakers will be in focus later this week.• China data. China GDP higher than predicted. Growth is being driven by consumer spending. Industrial production & investment underwhelmed. Diverging sector performance points to more AUD/EUR downside.• AUD/NZD in focus. NZ CPI released tomorrow. Will the data meet the RBNZ’s lofty forecasts? We see AUD/NZD moving higher over the medium-term. Markets paused for breath overnight, with movements across most assets well contained despite an array of data and US earnings results. US equities ended the data...