In the G10 currencies today, USD and JPY are the top gainers with CAD, EUR, and NZD among the top losers. The RBNZ kept the OCR unchanged at 1.75% and provided a neutral statement, largely unchanged from the previous assessment. NZD has been sold subsequently as we highlighted earlier. USD has already started to improve but we would need a good US CPI print on Friday to keep USD from falling. Elsewhere, the war rhetoric between North Korea and the US is showing no signs of abating with North Korea issuing details of a Guam Missile Plan. In the equities space, the Nikkei 225 has closed 0.05% down, at 19730 and the European equities have also opened lower with FTSE down 0.92%, DAX down 0.15%, and CAC down 0.1%. In the rates market, the EU and US 10-year yields have fallen further, now at 0.44% and 2.25%, respectively. In the energy space, the WTI front month has improved, now trading at $49.82, following EIA crude inventory data showing another sharp draw of 6.451M.
Earlier in the morning, the Norway’s inflation rate came in at 1.5% better than the 1.4% expected. Also, the Swedish industrial production reported strong numbers. In terms of data today, the UK industrial and manufacturing production at 0830 GMT and US PPI at 1230 GMT are the only data set of interest. Fed’s Dudley speaks at 1400 GMT and this will also garner some interest from the market.