Daily Market Commentary 9th April 2021

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The Fed minutes supported Chairman Powell’s recent statements regarding the US economic recovery, reiterating that growth would be stronger than expected and that there needed to be extended consistency, before the Fed considered altering current monetary policy. These assurances of continued stimulus was enough to boost market confidence and equities pushed to new highs, while bond yields settled and the US Dollar drifted lower. The EUR jumped to 1.1900, while the Yen traded 109.25. The GBP slipped to 1.3730, despite the softer US Dollar, impacted by the problems surrounding the AstraZeneca distribution and performance/side effects.

The softer reserve allowed the commodity currencies to regain more lost ground, with the AUD trading up to 0.7640, while the NZD pushed back to 0.7050. The NZD regained ground after some poor Business Confidence data, which was reversing recent improving trends, and signaled widespread price rises in the economy will impact inflation and cost of living pressures. Fed Chair Powell also spoke on the board of the IMF and was bullish on the US economic recovery, but what comes out of the IMF/World Bank/Central Bankers/Finance ministers pow-wow could have much more super-macro monetary implications?

A look at Chinese PPI and CPI data, in local trade, could impact the domestic market trading day.

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