Headlines:
- UK March retail sales -0.9% vs -0.5% m/m expected
- France April flash services PMI 56.3 vs 53.4 expected
- Germany April flash manufacturing PMI 44.0 vs 45.7 expected
- Eurozone flash April services PMI 56.6 vs 54.5 expected
- UK April flash services PMI 54.9 vs 52.9 expected
- BOJ reportedly likely to maintain policy, dovish guidance next week
- ECB's de Guindos says will stick to data-dependent approach in the months ahead
- ECB's Visco: We are yet to see the full effect of rate hikes
- ECB's Rehn warns against early withdrawal of restrictive monetary policy
- Tokyo Stock Exchange says plans to extend trading hours by 30 minutes from 5 November 2024
Markets:
- JPY leads, AUD lags on the day
- European equities lower; S&P 500 futures down 0.2%
- US 10-ear yields down 1 bps to 3.535%
- Gold down 0.9% to $1,987.33
- WTI crude up 0.3% to $77.35
- Bitcoin down 0.6% to $28,028
It was a mixed trading session for the most part, with markets not really following much of a theme.
In terms of data, UK retail sales disappointed once again and that is keeping the pound pressured. Meanwhile, euro area PMI data saw a contrast between services and manufacturing activity but on the balance of things, it points to a more solid recovery in economic conditions in the region.
That failed to really light a spark in the euro though, as it mainly just reaffirms the ECB's current policy conviction. That said, EUR/USD is keeping steady around 1.0975 and is up from around 1.0945 earlier in the session.
GBP/USD is a laggard, slipping from around 1.2430 to 1.2380 before keeping around 1.2390 levels at the moment. USD/JPY traded more sideways as Treasury yields are holding slightly lower on the day, with the pair hovering around 133.80 to 134.00 mostly.
The antipodeans are also holding lower, with AUD/USD down 0.7% to just under 0.6700 upon a rejection of its 200-day moving average at 0.6741 with AUD/JPY also trading back under 90.00 on a rejection of its own 100-day moving average.
Elsewhere, equities were sluggish throughout as the back and forth action this week is leaving traders with little appetite it would seem. European indices are slightly lower after a flattish open while US futures are also just slightly lower, adding a little to yesterday's retreat.
In other markets, gold is keeping lower by nearly 1% to $1,987 as the state of flux in and around the $2,000 mark continues to play out. Meanwhile, WTI nudged lower initially to test its 100-day moving average at $76.80 before climbing back up to $77.35 now and holding marginally higher on the day.
