Headlines:
- FOMC day is finally upon us
- EU's von der Leyen: We will phase out Russian supply of crude oil within six months
- Latest EU sanctions will also target Russia's top bank
- SNB's Maechler: A strong franc helps to guard against inflation
- US MBA mortgage applications w.e. 29 April +2.5% vs -8.3% prior
- Eurozone March retail sales -0.4% vs -0.1% m/m expected
- Eurozone April final services PMI 57.7 vs 57.7 prelim
- Germany March trade balance €3.2 billion vs €9.8 billion expected
- UK March mortgage approvals 70.69k vs 70.78k expected
Markets:
- AUD leads, CHF lags on teh day
- European equities lower; S&P 500 futures up 0.4%
- US 10-year yields up 0.8 bps to 2.965%
- Gold up 0.1% to $1,868.82
- WTI crude up 4.4% to $106.92
- Bitcoin up 3.3% to $39,017
It was very much a placeholder session as we await the FOMC meeting later today.
There were light changes among major currencies, though the dollar is resting a touch softer for the time being. That said, the moves are relatively light all things considered.
EUR/USD stuck in a narrow range around 1.0510-20 levels while USD/JPY did see a light retreat from 130.05 to 129.90. Commodity currencies are faring better as US futures inched up and the loonie benefited from stronger oil prices.
AUD/USD is up 0.5% to 0.7130 from around 0.7110 earlier in the day. Meanwhile, USD/CAD inched lower from 1.2830 to 1.2805 as oil rallied after the EU proposed a phased embargo of Russian crude oil supply. WTI crude moved up over 4% to near $107 currently.
The bond market remains tentative as all eyes are on the Fed while equities are having a mixed showing with European indices holding slightly lower while US futures are up a touch on the day.
The Fed holds all the cards for what comes next, so let's see what Powell & co. has to offer later in the day. May the 4th be with you~
