Egypt imposes tariff on exports of fish

Egypt’s Trade Ministry on Thursday imposed a tariff on the exports of fresh and frozen fish of 12,000 Egyptian pounds per tonne for four months. The decision comes two days after President Abdel Fattah al-Sisi said Egypt had halted fish exports after a surge in sales to foreign markets following last November’s currency devaluation led to supply shortages locally and a rise in domestic prices. Sisi did not say how long the suspension would last but promised Egyptians, who have

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Egyptian Government to add 10% social allowance to workers’ salaries from May

The Finance Ministry approved the disbursement of a 10 percent social allowance for workers, during a meeting with the leaders of the Labor Union on Tuesday at its headquarters. The Ministry of Finance representatives agreed to pay the 10 percent social allowance in full, which will be added to the basic salary and paid retroactively from June 1, 2016, said Gebaly al-Maraghy, president of the Labor Union and chairman of the Labor Force Committee in Parliament. The ministry representatives demanded

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Japan core CPI was 0.2% y-y, in line with the consensus forecast.

March all-Japan core CPI was 0.2% y-y, flat from February and in line with the consensus forecast   “The breakdown shows an ongoing marked upward contribution from energy prices (energy prices boosted the core CPI by +0.17ppt more than in February), but this was cancelled out by weakness in the core portion.” “The all-Japan core CPI was -0.3%, which is a wider margin of decline than February’s -0.1%. The larger decline in the core CPI itself, however, was no major

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Asian indices retreat on geopolitical risks

Asian equities trade on the back foot on the last trading day of the month on geopolitical risks. The MSCI Asia Pacific Index edged lower after climbing for six straight sessions. Japan’s Nikkei fell 44 points as the bullish momentum in the Dollar-Yen pair ran out of steam. Shanghai Composite Index dipped 11 points, but remained above the line of 3135 levels. Geopolitical tensions resurfaced by after President Trump said there is a chance of a “major” conflict with North

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GBP/USD bears frustrated as the pair continues to strengthen despite weak economic data

GBP/USD bears frustrated as the pair continues to strengthen despite weak economic data, Brexit uncertainty and May’s call for UK snap elections. UK Q GDP – is the bad news already priced-in? Pair’s rally from the low a low of 1.2109 (Mar 14 low) has been partly fuelled by broad based US dollar weakness and partly due to expectation that Theresa May will secure a larger majority in the June 8 general election. However, on the way higher, the British

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US Dollar continue gains above 99

After failing to break above the 99 handle at the beginning of Draghi’s press conference, the US Dollar Index fell to 98.70 but was able to quickly recover as the investors started to digest the remarks regarding the ECB’s policy stance. The index surged back above 99 and refreshed its session high at 99.20. Draghi disappointed the markets as he didn’t give any hints regarding a possible timing of the next policy move. He said that the euro area’s recovery

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WTI sinks to mid-$48.00s

Crude oil prices are weakening further during the second half of the week, with the barrel of West Texas Intermediate hovering over the mid-$48.00s. Prices for the barrel of the American benchmark of the sweet light crude oil are navigating fresh multi-week lows in the $48.50 region as supply glut concerns have returned to the markets and keep dragging on sentiment. Adding to crude oil weakness, traders remain sceptical on the effect on prices of the current OPEC/non-OPEC output cut

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FX option expiries for today NY cut

FX option expiries for today NY cut at 10:00ET, via DTCC, can be found below. EURUSD: 1.0750-55 (795m) 1.0800 (406m) 1.0830 (442m) 1.0850-60 (989m) 1.0880 (467m) 1.0900 (535m) 1.0930 (270m) 1.0975 (305m) 1.1000-05 (783m) 1.1030 (315m) USDJPY: 110.75 (USD 370m) 111.00 (380m) 111.70 (446m) 112.50 (245m) GBPUSD: None of note AUDUSD: None of note USDCAD: 1.3370-80 (882m) 1.3550-60 (1.2bln) 1.3600 (1.16bln Share this postFacebookTwitterGoogle+Pinterest

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5 solar companies liquidate their works in Egypt

Five solar energy companies decided to liquidate their businesses in Egypt after they withdrew from the feed tariff projects. The companies took their decision on the basis of the extraordinary General Assembly resolution of February 2 of this year, with the companies “Al-Saraj 1 Solar, Bareeq Capital Solar, Gulf Newergy Egypt Renewable Energy, Adenium Egypt Solar and Smart Green Egypt Renewable Energy” And the appointment of Rashad Hosny as a liquidator for the company. Rashad Hosni, a refinery and partner

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Egypt open for business, working on improving investment atmosphere

Investment and International Cooperation Minister Sahar Nasr stressed that Egypt is open for business and that she is working on improving the business environment and ditching bureaucracy. In an interview with Bloomberg network on the fringe of her visit to the US, she said the parliament is examining an investment law. She said Egypt is open for business, noting that she was working on re-branding Egypt, improving the business environment and making sure that more investments come in from the

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Citigroup gets Saudi Arabia capital markets licence

Saudi Arabia has awarded a licence to Citigroup to allow it to provide a full range of investment banking and capital markets services, the US bank said on Tuesday. It will see Citigroup return to Saudi Arabia after an absence of nearly 13 years and comes at a crucial time: investment opportunities are opening as the kingdom diversifies its economy away from oil under its National Transformation Plan. The government is preparing to list up to 5% of oil giant

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Uber sets flying car launch for 2020

Uber said Tuesday it wants to launch a system of flying cars to move people around cities, with a goal of putting demonstration projects in place by 2020. The ridesharing giant announced a series of partnerships to manufacture “vertical takeoff and landing” (VTOL) vehicles and put networks in place, a system dubbed Uber Elevate. The partner cities working with Uber are Dubai and the Dallas-Fort Worth metropolis in Texas. “The goal of these partnerships is to develop a new on-demand

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Dubai tourism numbers surge on Indian, Chinese and Russian visitors

Dubai’s tourism industry, a key driver of non-oil sector growth, got a shot in the arm in the first quarter of the year as overnight visits jumped 11 per cent year-on-year, adding further evidence of improvement in economic activity for both the emirate and wider nation. In the first three months of the year, Dubai hosted 4.57 million tourists compared to 4.1 million a year earlier. The growth was more than double the rate registered in the same period last

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Bank of Japan kept key policy tools unchanged

USD/JPY barely moved after the Bank of Japan kept key policy tools unchanged, boosted the outlook for the Japanese economy and revised core inflation lower as expected. The central bank revised its core CPI forecast for FY 2017/18 to 1.4% from the previous forecast of 1.5%. The GDP forecast for FY 2017/18 was revised higher to 1.6% from 1.5%. The bank took note of the rise in exports, but warned that the long-term inflation expectations remain weak and the moves

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Australia Q1 Annual Inflation Jumps to Highest Since September 2014

Australia’s first-quarter annual inflation jumped to its highest since September 2014, although the q/q figures remain unchanged during the period. The Q1 CPI data provides confirmation that inflation has stabilised and is creeping toward the policy target band. Headline CPI is now above 2 percent y/y, but core inflation remains softer. The average of the two core measures rose 0.4 percent q/q, in line with the previous two quarters but the ANZ diffusion index continues to point to soft price

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Australian Inflation Reaches Rbaa Target Range

The Reserve Bank of Australia’s (RBA) monetary policy has a duty to maintain price stability, full employment, economic prosperity and the welfare of the Australian people and to achieve these targets RBA maintain an inflation target of 2-3 percent. Data released earlier shows that for the first time since 2014, the inflation has reached the RBA’s target range. In the first quarter of 2017, CPI inflation in Australia increased by 2.1 percent from a year ago. Inflation grew by 0.5

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AUD weaker on Aus CPI, eyes on US tax reforms announcement

Risk-on trades dominated the Asian markets, after a strong performance seen on the Wall Street and amid higher treasury yields. The Japanese yen remained under pressure in the wake of increased demand for risk assets, while the Aussie stalled its recovery mode and fell back into the red following the release of the Australian Q1 CPI report, which revealed a mixed picture of the consumer spending. The EUR/USD pair maintained its bullish streak amid a broadly subdued US dollar, while

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FX option expiries for today NY cut

FX option expiries for today NY cut at 10:00ET, via DTCC, can be found below. EURUSD: 1.0800 (EUR 465m) 1.0850 (500m) 1.0880 (380m) 1.0900 (1.1bln) 1.0930 (385m) 1.0950 (345m) 1.1000 (1.1bln) 1.1050 (415m) USDJPY: 110.00-10 (2.6bln) 110.45-55 (1.4bln) 112.70-80 (300m) 113.00 (1.4bln) GBPUSD: 1.2800 (GBP 227m) 1.2830 (180m) 1.2850 (220m) USDCHF: 1.0000 (USD 175m) AUDUSD: 0.7500 (AUD 310m) 0.7550 (260m) 0.7600 (265m) 0.7620 ( 450m) USDCAD: 1.3500 (USD 500m) 1.3600 (240m) 1.3705 (500m) NZDUSD: 0.7000 (NZD 236m) EURJPY: 121.00 (EUR

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US: Economic data showed some signs of moderation

US data showed some signs of moderation overnight, although outright levels remain elevated suggesting the economy continues to expand at a moderate pace. “April consumer confidence dipped to 120.3, with both the present situations and expectations indices falling. The fall only partly reversed the surge in March, with the headline index still close to a 16-year high. The details point to a strong labour market with respondents saying that jobs are plentiful rather than hard to find remaining close to

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Australian Bonds Decline Tracking Weakness in U.s. Treasuries

The Australian government bonds declined Wednesday, tracking weakness in the U.S. counterparts and after reading the upbeat consumer price inflation (CPI) for the first quarter of this year. Although q/q CPI stood pat, the annual rate helped sway investors away from safe-haven assets. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped 2-1/2 basis points to 2.64 percent, the yield on 15-year note climbed nearly 2 basis points to 3.04 percent and the yield

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Moody’s: Outlook Stable for Malaysian Banks

Moody’s Investors Service says that the outlook for Malaysia’s banking system is stable over the next 12-18 months. “The key drivers of our stable outlook for the Malaysian banking system are our expectation that operating conditions will stabilize, on the back of a gradual recovery in global growth, resulting in more stability in the banks’ asset quality and profitability,” says Simon Chen, a Moody’s Vice President and Senior Analyst. “The banks’ strong capital and stable funding levels, and our expectation

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Trump tax policy announcement may struggle to gain traction

Trump has said he plans to announce tax policy this week, but the market is beginning to focus on how policy will be passed in Congress and is less influenced by shiny baubles of big tax cuts. “At issue will be how tax cuts will be funded. Trump’s own Treasury Secretary Mnuchin has downplayed the prospect of a tax reform package passing the Senate by August.” “Mnuchin told IMF MD Lagarde during an aired interview last week that tax reform

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GBP/USD placed at the lower trading range

The GBP/USD pair prolonged its consolidative price action and is currently placed closer to the lower band of its five-day old trading range, near 1.2775 level. The pair traded with mild bearish bias for the third consecutive session and continued with its struggle to build on previous week’s strong up-surge led by the UK PM Theresa May’s announcement to call for a snap election on June 8th. A modest greenback recovery, with the key US Dollar Index moving back above

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EUR/USD Political risks fade

EUR/USD clocked a high of 1.0918, but failed to close above August 8 high of 1.0873 levels despite French election relief. The rally in the EUR and other risk assets on Monday was more due to unwinding of hedges initiated ahead of French elections on fears of Le Pen-Melenchon scenario. The election is no longer a risk not because Macron came out victorious in the first round, but due to the fact that the polls show Macron is set to

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USD/CAD sits at fresh 2017 top

The US dollar paused its bullish run against its Canadian counterpart over the last hours, sending USD/CAD in a phase of upside consolidations near four-month highs reached at 1.3560. The spot rallied hard in Asia, after the bulls found renewed bids near 1.35 heads in the overnight trades. The Canadian dollar witnessed aggressive selling amid reports that the Trump administration plans to impose 20% tariff on soft lumber imports from Canada. Such a move by the Trump administration will hamper

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EGX records weekly profits of LE0.8 bln

Egyptian stocks have a good performance ending the trading session of Thursday, as the blue-chip index EGX30 lift 0.08% to close at 12,905.85 points, the small and medium-sized enterprises index EGX70 climb 0.29% to close at 591.00 points and the broader index EGX100 index edged up 0.31% to close at 1,366.57 points. Trading volume reached LE155.563 million shares, with a total value of LE865.302 million, over 26.281 trades. Market capitalization was LE663.419 billion, with weekly increase of 0.8 billion. the

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Iran, Russia to Build 2 Nuclear Power Plants

Iran and Russia will jointly construct two nuclear power plants in the Islamic state, Xinhua Net informed, citing the Iranian Energy Minister, Hamid Chitchian. As informed on Oil Price, the cooperation contract signed between Russian experts and the Atomic Energy Organization of Iran (AEOI) stats that the two nuclear plants will have 1,000 MW of capacity each. The AEOI’s Head, Ali Akbar Salehi, said that the construction of the plants will start soon, without giving details on the work timeline.

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MENA Oil Exports to South Korea Increased

Oil shipments from Saudi Arabia to South Korea rose by 10.9% to reach 3.52m tons per month, or around 831,4b/d, during March compared to 2016. However, South Korea’s imports of Saudi crude oil decreased 2.6% from 3.61m tons per month during February as the world’s top oil exporter complies with the deal made by members of the Organization of Petroleum Exporting Countries to cut production. Meanwhile, South Korea imported a monthly 2.26m tons of Iranian crude oil, divided into 534,368b/d, during

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Egypt Signs AFESD Funding Agreement for Solar Plant

The Egyptian Minister of Investments and International Cooperation, Sahar Nasr, signed an Arab Fund for Economic and Social Development (AFESD) agreement worth $85m. The deal was signed by the Egyptian Minister and AFESD’s General Director, Abdullatif Youssef Al-Hamad, to help finance the construction of a 50MW photovoltaic power plant in Kom Ombo in Aswan, reported Amwal Al Ghad. The Kom Ombo project aims to support electricity supply in Egypt in order to meet the growing demand for electricity and to focus on new

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GE to Increase Investments in Egypt

General Electrical (GE)’s President and CEO for the Middle East, North Africa, and Turkey region (MENAT), Rami Qasem, stated to Daily News Egypt that GE is planning to localize more of its manufacturing in Egypt. Qasem added that GE will provide digital solutions that focus on how to help the country to have more efficient and reliable power generation. The company was manufacturing its components and equipment in Egypt and serving the whole region for the last 13 years and it further

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The Australian government bonds slumped Friday

The Australian government bonds slumped Friday as investors cashed in profits on the last trading day of the week amid geopolitical tensions that were offset by a more positive market reaction to the sudden announcement of the United Kingdom’s snap election, to be held on June 8. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped over 3-1/2 basis points to 2.55 percent, the yield on 15-year note also climbed over 3-1/2 basis points

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Francois Hollande; the first president since World War II not to seek re-election.

The current President, Francois Hollande, is so unpopular that he decided not to run — the first president since World War II not to seek re-election. And voters are abandoning the two mainstream parties, the Socialists and Republicans, which have dominated French politics for decades. While they have always garnered the overwhelming majority of support, this time they may not get even a quarter of the votes. In fact, the parties that until now took turns governing France may not

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EUR/JPY extends daily gains

The EUR/JPY pair caught a fresh bid-wave during the early trading hours of the American session and reached a new ten-day top at 117.75. After easing back a little, the pair is trading at 117.73, up 1% on the day. The pair was able to record gains in every single day since the start of the week and Thursday is no exception. The pair’s upsurge is mainly fueled by the shared currency’s strength as the Euro Index is up 0.5%

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Germany’s finance minister Wolfgang Schaeuble, via, Reuters

Germany’s finance minister Wolfgang Schaeuble is on the wires now, via, Reuters, stating that it would not be realistic to take further steps towards European integration at the moment. •There needs to be more cooperation and coordination on global level or at least on multi-national level •After Brexit, Europe needs different speeds, coalitions of the willing •Europe must contribute more to security in transatlantic partnership but only step by step •Europe must keep the common currency strong, must ensure that

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10-Year Jgb Yields Touch 5-Month Low

The 10-year Japanese government bond yields touched 5-month low on Wednesday as investors poured into safe-haven instruments on growing speculation about a global reflation trade amid the United States President Donald Trump administration’s ability to push through its pro-business reforms as well as geopolitical tensions related to North Korea. The benchmark 10-year bond yield, which moves inversely to its price, hovered around 0.01 percent, the long-term 30-year bond yields fell nearly 1 basis point to 0.76 percent and the yield

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The USD has given back its initial Trump inspired rally

The USD has given back its initial Trump inspired rally as the confidence in Trump’s capacity to deliver on his ambitious agenda has faded. Economic recovery outside of the US has gained momentum, attracting capital flow to emerging markets. Geopolitical risks have boosted JPY and gold, while lessened Trump’s desire to pursue trade restrictions against China. US economic activity in Q1 has been sub-trend and recent inflation data has softened, lessening the urgency for Fed policy tightening. Trump has called

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The call for a snap election in Britain

Prime Minister Theresa May intends to hold a UK general election on 8 June 2017 as she will introduce a motion in parliament today that requires (and is likely to get) a two-thirds majority support. “Holding an election right now has many advantages, including giving her (an elected PM) the legitimacy to negotiate the UK’s Brexit deal with the full democratic backing of the voters. Her party’s support is also at record highs relative to the opposition Labour party.” “The

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Australian Bonds Plunge After Reading mixed Signals from RBA

The Australian government bonds plunged Tuesday after a long Easter holiday, following mixed signals from the Reserve Bank of Australia’s (RBA) April monetary policy meeting minutes. Further, the Australian dollar slipped as iron ore prices extended losses and minutes of the central bank’s April meeting reinforced views that interest rates would stay low for longer. The most-traded iron ore on the Dalian Commodity Exchange has fallen to its lowest since early January. The yield on the benchmark 10-year Treasury note,

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Gold drift lower for second straight session

Gold edged lower for the second consecutive session and moved farther from over 5-month tops touched in the previous session. Currently trading around $1283 level, a modest US Dollar recovery prompted investors to take some profits off the table, following the precious metal’s strong up-surge to the highest level since Nov. 9. A stronger tends to dent demand for dollar-denominated commodities – like gold. The profit-taking slide, however, has been limited amid rising geopolitical concerns and anxiety ahead of the

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Gold retreats from multi-month highs as USD recovers a bit

Gold witnessed a mild retracement from fresh multi-month tops touched on Thursday and is currently trading with mild negative bias around $1285 region. Persistent geopolitical tensions and worries over the US relations with Russian and N. Korea continued supporting the precious metal’s safe-haven investment appeal. The yellow metal also benefitted from overnight US Dollar slump in wake of the US President Donald Trump remarks that the US currency was too strong. • U.S. President Trump: USD is getting too strong

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China oil imports surge past US

Bloomberg is out with an article on the Chinese oil demand, noting that China’s crude imports in March surged to a record, and surpassed the US as the world’s biggest importer during the first quarter, as domestic output declines. China customs figures showed China’s inbound shipments during the first quarter rose 15% to almost 105 million tons, which averages about 8.5 million barrels a day. The US imported almost 8 million barrels a day in March and about 8.15 million

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USD/CAD slides to 1-1/2 month low

The greenback selling pressure remains unabated on Thursday, dragging the USD/CAD pair to its lowest level since late Feb. Overnight comments by the US President Donald Trump, that the US currency was getting “too strong” and could hurt the economy, continues to weigh on the US Dollar across the board. This coupled with a slump in the US treasury bond yields is further collaborating to the pair’s sharp downslide to 6-week lows. • USD slips below 100.00 mark to fresh

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GBP/USD near 1-1/2 week highs

The GBP/USD pair remained well bid for the fourth consecutive session and touched a 2-1/2 week high level, albeit has now retreated few pips to currently trade around mid-1.2560s. Spot prolonged its recovery move from three-week lows touched at the beginning of this week, led by upbeat incoming UK economic data. The latest UK CPI print continues to point towards inflationary pressure, which coupled with yesterday’s strong average weekly earnings growth data remains has been supportive of the pair’s recovery

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EUR/USD: Upside capped near 1.0670

The EUR/USD pair extends its bullish momentum for the fourth straight session, now defending minor-gains near fresh weekly highs scored earlier at 1.0677. The spot consolidates the overnight rally as the US dollar remains broadly sold-off amid persisting weakness in treasury yields, triggered by Trump’s talking down the US dollar in an interview with the WSJ late-Wednesday. Trump cited, “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s

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Australia: Much stronger than expected employment numbers

A much stronger than expected Australian employment outcome with a 60.9k rise in total employment (largest since Oct 2015) and an eye popping 74.5k full time rise (largest since 1987). “Not surprisingly, the A$ has jumped sharply higher on the news, from circa 0.7540 ahead of the data to a high of 0.7573.Given the degree of focus on employment data, we see risks of some further near term strength towards 0.7600 but view strength beyond that level into the 0.7600/50

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China Might take Military Actions Against North Korea

After the US President Donald Trump and the Chinese President Xi Jinping held a two-day meeting in President Trump’s Mar-a-Lago resort last week, China seems to have hardened its stance against North Korea. An editorial came out in the state-owned government newspaper Global Times, which warns that the Chinese military would react with force if Kim-Jong-Un’s nuclear activity adversely affects areas in the North Eastern border of China. The editorial says, “China has a bottom line that it will protect

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FX option expiries for today NY cut

FX option expiries for today NY cut at 10:00ET, via DTCC, can be found below. EURUSD: 1.0500 (EUR 936m) 1.0545-50 (500m) 1.0600-10 (1.01bln) 1.0650-55 (2.2bln) 1.0680-85 (1.2bln) 1.0700-05 (2.05bln) USDJPY: 109.00-10 (USD 772m) 110.00 (1.6bln) GBPUSD: 1.2450 (GBP 320m) 1.2480 (402m) 1.2490-1.2500 (575m) 1.2620 (275m) EURGBP 0.8450 (EUR 325m) 0.8530 (275m) 0.8590-0.8600 (220m) USDCHF: 0.9925 (USD 200m) EURJPY: 117.00 (EUR 240m) 117.45 (200m) AUDUSD: 0.7400 (AUD 420m) 0.7510-15 (AUD 652m) 0.7560-65 (1.24bln) 0.7600-10 (485m) 0.7660-70 (475m) USDCAD: 1.3400 (USD 390m)

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EUR

Deutsche Bank; Impact of ECB exit on the euro

The research team at Deutsche Bank, investigates how an exit from unconventional ECB policy would impact the euro and finds that “not all tightenings are created equal” and argue that it is the sequencing of the exit, rather than the overall monetary policy stance, that will determine whether the euro appreciates. Key Quotes “A policy focused on an early exit from negative rates would be very bullish for the euro. We show that FX is far more sensitive to front-end

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GBP flirting ahead of BOE Carney and UK jobs data

Rising geopolitical tensions surrounding the Korean peninsula and Syria continue to drive flows towards traditional safe-haven assets, including the yen, and has been a key factor driving the cross lower to its lowest level since mid-Jan. With broader market risk-sentiment remaining at the centre stage, traders look forward to the release of UK jobs report for fresh impetus. A stronger UK jobs report might prompt some short-covering and provide some immediate respite for the bulls. The Japanese Yen continued gaining

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Most Asian Markets in Red, Gold Hits Fresh 5-Month High at $1,279

All the major Asian indices were trading on a lower note on Wednesday. On the other side, gold and silver both were trading higher in early hours of Asia. Gold was trading around $1,276 mark while silver was trading around $18.32 marks. Silver hits fresh 5-month high at $18.45 mark. Japan’s Nikkei was trading around 1.19 percent lower at 18,525 points. Hong Kong’s Hang seng was trading 0.18 percent lower at 24,046 points. Australia’s S&P ASX200 was trading around 0.04

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China Deploys 150,000 Troops at North Korea Borders Amid Tensions in Peninsula

As the US aircraft carrier USS Carl Vinson approaches the Sea of Japan, the geopolitical tensions in the Korean Peninsula have reached a new boiling point. Before last week’s Trump-Xi meeting, President Trump said that the United States would act unilaterally to tackle threats from North Korea if China doesn’t help to diffuse tensions. During the Trump-Xi meeting, north Korea successfully tested a ballistic missile, which was condemned by the US and its allies in the region as an act

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New Zealand Bonds jumped in global demand for safe-haven assets.

The New Zealand bonds jumped Tuesday at the time of closing, is response to a rise in global demand for safe-haven assets, following overseas uncertainties and political tension. The yield on the benchmark 10-year bond, which moves inversely to its price, slumped 4 basis points to 3.08 percent, the yield on 7-year note remained also plunged 3-1/2 basis points to 2.72 percent and the yield on short-term 2-year note also traded 4-1/2 basis points lower at 2.08 percent. The United

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North Korea Delivers Ready for War Message

Strong commentaries came from the North Korean side after the United States deployed an aircraft carrier in the waters near the Korean peninsula. President Trump has previously said before the Chinese President Xi Jinping arrived for a two-day visit in the US that the country is ready to handle the threat from North Korea unilaterally if required. North Korea’s supreme leader Kim Jong-Un’s state-owned news agency KCNA claimed Trump’s deployment showed “reckless moves for invading” that had now “reached a

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GBP; key focus would be on the UK inflation figures

Tuesday key focus would be on the UK inflation figures, with the headline CPI expected to drop to 0.3% m-o-m and the yearly rate holding stable at 2.3% for March. Later during the NY session, the release of US JOLTS openings data and speech by the Minneapolis Fed President Neel Kashkari would also be looked upon for some short-term trading impetus. Lack of any follow through US Dollar buying interest, despite of overnight hawkish remarks by the Fed Chair Janet

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Australian 10-Year Bond Yields Slump to 5-Month Low

The Australian 10-year bond yields plunged to near 5-month low on the last trading day of the week as investors poured interest in safe-haven assets, after the United States fired a fleet of missiles against the Syrian airbase earlier today, which further shored up bond demand. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 6 basis points to 2.54 percent, the yield on 15-year note plunged nearly 6 basis points to 2.94 percent

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New Zealand Electronic Card Retail Spending Declined

Retail spending on credit and debit cards fell at a seasonally adjusted 0.3% last month, following a 0.6% drop in February, Statistics New Zealand reported Tuesday. Electronic card transactions in New Zealand declined in March for a second consecutive month, government data showed. Electronic card receipts are a proxy for consumer spending and are therefore closely watched by the financial markets. Consumer spending continues to be the backbone of the New Zealand economy. The volume of retail sales rose at

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Home financing in Australia declined in February

The number of home loans issued by Australian authorities declined by a seasonally adjusted 0.5% in February, following a revised 0.4% increase the previous month, the national statistics bureau said in a report on Monday. Analysts in a median estimate called for a 0.1% gain. The Paris-based Organization for Economic Cooperation and Development (OECD) has described Australia’s housing market as “unprecedented” in reference to the relentless growth in home values through the years. A market crash would dent consumer spending

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Weekly events

Monday, April 10 4:00pm USD Fed Chair Yellen Speaks Tuesday, April 11 4:30am GBP CPI y/y Wednesday, April 12 4:30am GBP Average Earnings Index 3m/y 10:00am CAD BOC Monetary Policy Report 10:30am USD Crude Oil Inventories 11:15am CAD BOC Press Conference 9:30pm AUD Employment Change Tentative CNY Trade Balance Thursday, April 13 8:30am CAD Manufacturing Sales m/m 8:30am USD PPI m/m 8:30am USD Unemployment Claims 10:00am USD Prelim UoM Consumer Sentiment Friday, April 14 8:30am USD CPI m/m 8:30am USD

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Saudi Arabia Keeps Lowering Crude Oil price

Saudi Arabia has dispatched a total of 42.5 million tons of crude oil, LNG and oil products to Europe in 2016. Despite cuts in production associated with the OPEC deal, Saudi Arabia is aiming to secure its vital markets in Asia and Europe from its major competitors Russia and Iran. Asian clients will enjoy a $0.45 per barrel discount against the Oman/Dubai benchmark for May 2017 deliveries. Discounts for the Extra Light and Super Light blends will be $0.35 and

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AUD/USD OUTLOOK

The Australian dollar declined against US dollar on Friday as investors fled risk after the United States fired a barrage of missiles against a Syrian air base controlled by President Bashar al-Assads forces. The missile strikes, launched in retaliation for a deadly chemical attack in a rebel-held area, raises the risk of confrontation with Russia and Iran, Assads two main military backers. The Australian dollar dropped to 0.7492, its lowest since early March on concerns about a potential escalation in

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GBP/USD OUTLOOK

GBP/USD declined against dollar on Friday as sterling came under strong selling pressure after data showed an unexpected slide in British industrial output, clouding the outlook for the UKs economy as it prepares to leave the European Union. In the first full trading week since Britain triggered Article 50, the pound sank against the dollar and the euro. Sterling has been propped up in recent weeks by expectations that the Bank of England might consider a rate rise to rein

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EUR/USD OUTLOOK

The ECB meeting minutes and a speech by President Mario Draghi confirmed that the central bank is not looking to raise rates ahead of completing quantitative easing. This dismissed earlier reports that the bank was looking to hike rates and expectations for the April meeting will be for policy to remain unchanged. The central bank acknowledged an improvement in inflation but indicated that there was not sufficient evidence that levels would stay around 2% on a sustained basis. The ECB

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US Oil Rig Count Increases To 672

The number of oil rigs has increased for 12 weeks in succession to the highest level since August 2015. The number of oil rigs increased to 672 from 662 previously while the number of gas rigs increased to 165 from 160. The latest Baker Hughes North American total rig count increased to a total of 839 in the week ending April 7th from 824 the previous week. US oil production will continue to increase during the second quarter and there

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Oil prices jump after U.S. launches missile strike in Syria

Oil prices soared by around $1 per barrel on Friday after the United States launched dozens of cruise missiles at an airbase in Syria. U.S President Donald Trump said he had ordered missile strikes against a Syrian airfield from which a deadly chemical weapons attack was launched earlier this week, declaring he acted in America’s “national security interest” against Syrian President Bashar al-Assad. After tepid trading before the news, Brent crude futures, the international benchmark for oil, jumped by around

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Risk-aversion after big news of the US attacking the Syrian airfield broke on the wires

Volatility was back in Asia along with risk-aversion after big news of the US attacking the Syrian airfield broke on the wires. Yen emerged the strongest across the fx space, while gold rallied almost 1% to the highest levels since Feb 26 amid increased flight to safety, as markets dumped risky assets in search for safety bets. As a result, risk currencies such as the Antipodeans and GBP came under heavy selling pressure, with the Aussie losing the most. Also,

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Australian 10-year bond yields near 5-month low following US missile attack against Syria

The Australian 10-year bond yields plunged to near 5-month low on the last trading day of the week as investors poured interest in safe-haven assets, after the United States fired a fleet of missiles against the Syrian airbase earlier today, which further shored up bond demand. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped nearly 3 basis points to 2.55 percent, the yield on 15-year note slipped 1 basis point to 2.95 percent

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Australian bonds jump on short-covering, modestly lower equities

The Australian bonds jumped Thursday as investors covered previous short positions amid modestly lower equities that further lent support to the bond market. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slumped 4-1/2 basis points to 2.58 percent, the yield on 15-year note plunged 4 basis points to 2.96 percent and the yield on short-term 2-year traded 3-1/2 basis points lower at 1.67 percent by 04:10 GMT. The RBA left the cash rate at

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New Zealand bonds trade lower on profit taking

The New Zealand bonds traded modestly lower Thursday as investors cashed in profits toward the end of the trading week. Also, a positive reading at the latest GlobalDairyTrade (GDT) price auction lent weakness to the country’s debt market. The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1/2 basis point to 3.12 percent, the yield on 7-year note remained nearly flat at 2.75 percent and the yield on short-term 2-year note also traded 1/2 basis

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Top ECB official talks higher interest rates

Two days ago, the European Central Bank’s (ECB) executive board member Benoit Coeure warned that the Euro area governments and other financial actors need to prepare for higher interest rates in the coming future. He said, “I hope that euro zone governments know that interest rates will not stay at current levels,” and added that the negative interest rates that the ECB charges banks to deposit with it, had been effective in terms of monetary policy, but such rates should

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US President Donald Trump is set to meet his Chinese counterpart Xi Jinping

The US President Donald Trump is set to meet his Chinese counterpart Xi Jinping on April 6th and 7th. The meeting would be held in President’s Mar-a-Lago resort. This is President Trump’s first face to face meeting with the Chinese President. According to President’s Trump’s own words, the duo would discuss a range of issues from trade deals to North Korea, as well as the situation in the South China Sea. During the campaign, President Trump has been very critical

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German bunds gain after reading lower Eurozone composite PMI

The German bunds gained modestly Wednesday as investors poured into safe-haven assets after reading lower-than-expected Eurozone’s composite PMI for the month of March. Also, markets will be looking forward to a host of speeches from the members of the European Central Bank (ECB). The yield on the benchmark 10-year bond, which moves inversely to its price, fell 1/2 basis point to 0.24 percent, the long-term 30-year bond yields also slipped 1/2 basis point to 1.03 percent and the yield on

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Volatility remains as dollar consolidate

In the first quarter of 2017, several notable events kept volatility high in the global financial markets. Looking forward, the trend for the US dollar is not established but the first quarter’s events do provide some guidance on what to expect in the just-started second quarter. The US Dollar Index, a measure of the value of the US dollar against a basket of G-10 currencies, was 2.5 per cent lower through Q1. More than two months into Donald Trump’s presidency

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Trump about to wage war on N.Korea

Pressure continues to mount for former national security adviser Michael Flynn to testify before Congress about possible connections between the Trump campaign and Russia. However, while President Donald Trump said palms this off as nothing but a “political muddle” and a witch hunt, he said on Sunday that the United States is prepared to act alone if China does not take a tougher stand against North Korea’s nuclear program; That could rustle a few feathers and could start to come

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Brexit effects may reflect in business surveys

In the week after Britain formally notified the European Union of its intention to quit the bloc, business surveys will give more idea of what — if any — impact Brexit is having on the British economy and how its EU peers compare. Last month’s purchasing managers’ index (PMI) reports suggested unexpectedly strong growth in Britain’s economy since June’s Brexit vote may be starting to flag as inflation picks up, partly as a result of the pound’s post-referendum plunge. Similar

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Egypt lowers customs exchange rate to 16.5 pounds/dlr in April

Egypt said it would set its customs exchange rate to around 10 percent below the market price of the dollar for April in an effort to control inflation. Egypt’s inflation rate has soared since it floated its currency last November, with annual urban consumer price inflation hitting 30.2 percent in February – its highest level in more than three decades. “Lowering the customs exchange rate to around 10 percent less than the price of the dollar in banks aims to

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Dubai attracted AED 25.5 billion in foreign investment in 2016

Dubai attracted Dh25.5 billion in foreign direct investment (FDI) inflows in 2016 and succeeded in maintaining its position among the top 10 global cities in drawing in foreign investment. The emirate ranks seventh worldwide, announced Crown Prince of Dubai and Chairman of the Executive Council Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum. Dubai has also succeeded in attracting 247 new investment projects, which contributed to reaffirming its position as a preferred international investment destination, and stood third behind London

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Brexit effects may reflect in business surveys

In the week after Britain formally notified the European Union of its intention to quit the bloc, business surveys will give more idea of what — if any — impact Brexit is having on the British economy and how its EU peers compare. Last month’s purchasing managers’ index (PMI) reports suggested unexpectedly strong growth in Britain’s economy since June’s Brexit vote may be starting to flag as inflation picks up, partly as a result of the pound’s post-referendum plunge. Similar

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Fed could start shedding bonds from portfolio this year

The Federal Reserve could begin shrinking its $4.5-trillion balance sheet as soon as this year, earlier than most economists expect, New York Fed President William Dudley said on Friday in the central bank’s most definitive comments on the question that looms over financial markets. The hawkish-sounding assertion temporarily pushed the dollar lower and raised yields on longer-dated bonds, and added Dudley’s influential voice to at least three other officials at the Fed eyeing a prompt end to a crisis-era policy.

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EUR/USD OUTLOOK

For the month Eur/usd up +0.79% For the week Eur/Usd down -1.35% For the day Eur/Usd down 0.33% The Eur up move is fading, this week the pair had Its biggest loss against the dollar down 1.35% from 1.07990 down to 1.0653 for a loss of -146 pips, the US dollar strengthen at the start of the week after reaching 0.9867, OUR MAIN TARGET and climbed over 200 pips. In our view Eur/Usd remains somewhat bullish long term, and bearish

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US RIG COUNT INCREASED TO 662

The number of oil rigs increased to 662 from 652 previously while the number of gas rigs increased to 160 from 155. The total number of oil rigs has increased for 11 weeks in succession, although the rate of increase did slow considerably from the previous week which suggests that momentum could be fading slightly, although further evidence will be needed. The latest Baker Hughes North American rig count increased to a total of 824 in the week ending March

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UK gilts remain subdued despite lower-than-expected Q4 GDP

The UK gilts remained subdued Friday as investors largely shrugged off lower-than-expected fourth quarter gross domestic product (GDP) and business investment data. The yield on the benchmark 10-year gilts, which moves inversely to its price, jumped 1-1/2 basis points to 1.13 percent, the super-long 30-year bond yields climbed 1/2 basis point to 1.71 percent while the yield on the short-term 2-year traded nearly 1 basis points up at 0.11 percent by 09:10 GMT. On a yearly basis, UK’s GDP climbed

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JGBs slump after reading improved February consumer inflation

The Japanese government bonds slumped on the last trading day of the week, after reading the improvement in the country’s consumer price inflation during the month of February. Also, the fall in Japan’s rate of unemployment during last month, added to the fall. The benchmark 10-year bond yield, which moves inversely to its price, rose nearly 1 basis point to 0.07 percent, the long-term 30-year bond yields jumped 1-1/2 basis points to 0.84 percent and the yield on the short-term

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New Zealand business confidence drops, bonds close higher

The New Zealand bonds closed a tad higher at the time of closing, following a drop in the country’s business confidence. Also, investors are curiously eyeing the GlobalDairyTrade (GDT) price auction, scheduled to be held on April 5 for detailed direction in the debt market. The yield on the benchmark 10-year bond, which moves inversely to its price, fell 1 basis point to 3.21 percent at the time of closing, the yield on 7-year note also slipped nearly 1 basis

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FX option expiries for today NY cut

FX option expiries for today NY cut at 10:00ET, via DTCC, can be found below. EURUSD: 1.0600-10 (EUR 980m) 1.0700 (2bln) 1.0730-40 (910m) 1.0775 (528m) 1.0790 (480m) 1.0800 (390m) 1.0820-30 (1.04bln) 1.0850 (540m) 1.0900 (330m) USDJPY: 110.00 (USD 485m) 110.25 (380m) 110.50 (320m) 111.00-10 (1.85bln) 111.85-90 (575m) 112.00 (1.05bln)) 112.50-60 (570m) GBPUSD: 1.2400 (GBP 240m) 1.2430 (210m) 1.2450 (435m) 1.2550 (185m) 1.2600 (390m) EURGBP 0.8500 (EUR 555m) 0.8650 (190m) USDCHF 0.9880-90 ( USD 420m) 0.9950 (215m) 1.0075 (250m) AUDUSD: 0.7500

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EgyptAir losses exceed LE15 bln due to currency flotation

The flotation of the Egyptian pound augmented air carrier EgyptAir’s already significant losses to more than LE15 billion, said Civil Aviation Minister Sherif Fathy. However, he added, the company was able to add nine new airplanes to its fleet, despite the difficult circumstances. He also said the company did not receivE any financial support from the government, unlike other companies in similar financial straits. The minister highlighted the company’s steadfastness after the downing of the Russian plane over the Sinai

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Saudi King Salman invites Egypt’s Sisi to visit

Saudi Arabia’s King Salman has invited Egyptian President Abdel Fattah al-Sisi to visit his country, a public show of good relations following months of tension between the Arab world’s most populous state and its richest. Sisi welcomed the invitation and in turn invited Salman back, his office said in a statement on Wednesday. The two leaders met at an Arab summit in Jordan and discussed improving relations, the statement said. The two countries have disagreed over Syria and the transfer

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