For the 2nd day in a row, there was minimal economic data. Just final wholesale inventory data for the month of March was on the economic calendar. It fell -0.4% unchanged from the preliminary report and erased a 0.4% gain.

There was some Fedspeak from Fed's Collins and Cook.

Boston Federal Reserve president Collins expressed views that for inflation to decrease to the 2% target, there needs to be a slowdown in demand. She believes that the current Fed policy is appropriately positioned for the existing economic outlook and describes the monetary policy as moderately restrictive. Collins highlighted the risks associated with cutting interest rates too prematurely and does not anticipate that the recent jump in productivity will sustain. She noted that companies are in a good position to handle increases in wage growth and wasn't surprised by recent setbacks in inflation rates. Collins remains optimistic that the Fed can achieve 2% inflation within a reasonable timeframe, supported by a robust job market which is becoming more balanced and has continued to bolster consumer spending. However, she anticipates that some factors contributing to economic resilience might diminish and maintains that the current monetary policy should help in slowing the economy. She also pointed out that it is too early to determine the full restrictiveness of the current monetary policy.

Meanwhile Federal Reserve's Lisa Cook weighed in post-FOMC rate decision last week and noted that while households continue to show resilience, there is a growing concern over rising delinquency rates. She observed that companies have sufficient earnings to manage their debt payments effectively, and financial institutions are well-equipped to handle potential shocks. Cook also addressed concerns related to commercial real estate, describing the risks as significant yet manageable. Additionally, she commented that the growth of private credit appears not to have undermined the resilience of the financial system.

In the Forex market, the USD was the strongest of the major currencies today. The AUD inched out the JPY for the weakest of the major currencies. The EURUSD, USDCHF and NZDUSD each had very narrow trading ranges of 23 pips or 22 pips. The GBPUSD range was 43 pips but that was still about 51% of the normal range over the last month of trading.

Tomorrow at 7 AM ET, the BOE will announce their interest rate decision. For a technical roadmap through that report, CLICK HERE

Forex

Stocks today closed mixed with the Dow higher, the S&P literally unchanged and the Nasdaq marginally lower:

  • Dow rose 0.44%
  • S&P unchanged
  • Nasdaq down -0.18%

In the US debt market, the yield are ending higher after an average 10-year note auction:

  • 2 year yield 4.840%, +1.3 basis points
  • five year yield 4.500%, +3.0 basis points
  • 10 year yield 4.499%, +3.9 basis points
  • 30-year yield 4.642%, +3.7 basis points