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China-US trade war topic still in the agenda; US PPI will be closely watched today

Apr 10 • Morning Roll Call • 362 Views • No Comments

According to the Chinese President, Xi, a dialogue between the two parties would be the best way to resolve the ongoing disputes. He strongly believes that ‘cold war’ is out of place and opening pup can lead towards progress. While speaking at the Boao Forum, President Xi has expressed a soft stance on the trade conflict and has stated that China will not threaten others and does not tend to undermine existing global order. The intention is to expand imports, raise foreign ownership limits in auto sector and lower auto import tariffs, as well as to strengthen the intellectual property protection.
Today the EU macroeconomic calendar remains quiet, however traders will be waiting for the BoE Chief Economist Andy Haldane speech for any fresh trading drive. On the US side, traders will be focusing on the core PPI for March. As an important note, the March ISM manufacturing report has indicated raising input prices despite the steel and aluminum tariff concern. If the input costs continue to increase, it could apply upward pressure on PPI for intermediate goods.
Tomorrow the MBA mortgage market report is out for the US, as well as the overall March CPI that is expected to come at 0.0% as opposed to previous 0.2%. Furthermore, traders will be closely watching the FOMC meeting minutes. Coming from Eurozone, ECB President Draghi is scheduled to speak, while the rest of the important macroeconomic news is coming mostly from the UK, where Manufacturing production for February is expected to rise from 0.1% to 0.2%. The Trade data for February is also coming out on Wednesday with forecasts for GBP 11.9 deficit in the visible goods balance is expected.

EUR/USD

The EUR/USD pair is still trading within a range, even though it has managed to turn to short-term positive and below last week’s high of 1.2344. There is a possibility of an upward trend if the pair will manage to the previous weeks high.
GBP/USD

After bottoming around 50% retracement last week, the pair has managed to regain ground and may have a continued advanced for the coming sessions, especially is the pair manages to maintain its stance in the 1.4100 range.
USD/JPY

The USD/JPY pair is showing bullish sentiment, as the equities in Europe and the US could post solid gains, pushing the pair higher to the last week’s high located at 107.50.
Gold

The pair is currently trading around $1,332. 90, which shows that the metal price did not change much since Monday, seen as a reaction to the China-US trade war intensifying.

 

ECONOMIC CALENDAR EVENTS FOR APRIL 10th

EUR French Industrial Production m/m
EUR Italian Industrial Production m/m
GBP MPC Member Haldane Speaks
CAD Building Permits m/m
USD PPI m/m
Core PPI m/m

 

 

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