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EUR 9.28
For Business Accounts Only
http://track.com/articles/the-morning-track-were-gonna-be-friends/
The economic news of Japan’s revised 4Q GDP – missing expectations – or China trade showing a big surge in imports – neither may matter to markets as much as the story of China working with the US on their relationship – as China Foreign Minister Wang noted, China and the United States can "wholly become very good partners of cooperation," This was followed by calls for peace on the Korean Peninsula, where China suggested N.Korea stop missile tests and S.Korea stop its military exercises with the US along with giving up the US THAAD missile defense system. Wang suggests that China has “lips and teeth†in its relationship to North Korea. This all seems more important in the big picture than the noise of imports rising due to commodity prices. KRW is the first winner, but also consider the reduced fear of Trump policy missteps or perhaps the deeper risks of Japan/Korea and US ignoring China on North Korea. This friendship is just starting out anew. Consider t
he longer Japan relationship and how Japan selling of US bonds for the 3rd month seems and how the Trump Administration thinks about this. The biggest moves overnight are in EM FX as the USD goes bid as US bonds breakout ahead of the ADP report. The news from Germany on industrial production helps inspire further global bond selling along with talk that the ECB may have to change its views tomorrow. All that leaves FX markets in G10 close to flat except for GBP where the budget and technical pressures drive for a 1.20 test next. The commodity currencies are the second story today as even with bigger China imports, the noise of price vs. volume distortions, and the weaker oil prices thanks to a surprise API inventory surge – all that leaves AUD, CAD and NOK weaker. Markets are looking for friends and the bond market seems to be the lightening rod forcing sides with 2.55% breaking opening other moves like 2.65% 10Y tests or USD index over 102.30 next.
The Morning Track were-gonna-be-friends
- The Morning Track – We’re Gonna Be Friends by Bob Savagehttp://track.com/articles/the-morning-track-were-gonna-be-friends/
The economic news of Japan’s revised 4Q GDP – missing expectations – or China trade showing a big surge in imports – neither may matter to markets as much as the story of China working with the US on their relationship – as China Foreign Minister Wang noted, China and the United States can "wholly become very good partners of cooperation," This was followed by calls for peace on the Korean Peninsula, where China suggested N.Korea stop missile tests and S.Korea stop its military exercises with the US along with giving up the US THAAD missile defense system. Wang suggests that China has “lips and teeth†in its relationship to North Korea. This all seems more important in the big picture than the noise of imports rising due to commodity prices. KRW is the first winner, but also consider the reduced fear of Trump policy missteps or perhaps the deeper risks of Japan/Korea and US ignoring China on North Korea. This friendship is just starting out anew. Consider t
he longer Japan relationship and how Japan selling of US bonds for the 3rd month seems and how the Trump Administration thinks about this. The biggest moves overnight are in EM FX as the USD goes bid as US bonds breakout ahead of the ADP report. The news from Germany on industrial production helps inspire further global bond selling along with talk that the ECB may have to change its views tomorrow. All that leaves FX markets in G10 close to flat except for GBP where the budget and technical pressures drive for a 1.20 test next. The commodity currencies are the second story today as even with bigger China imports, the noise of price vs. volume distortions, and the weaker oil prices thanks to a surprise API inventory surge – all that leaves AUD, CAD and NOK weaker. Markets are looking for friends and the bond market seems to be the lightening rod forcing sides with 2.55% breaking opening other moves like 2.65% 10Y tests or USD index over 102.30 next.
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Robert Savage
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