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31 Mar 2015
FX recap: Initial gains in the USD pared - ANZ
FXStreet (Bali) - The ANZ Research Team provides a summary of Tuesday's moves in the financial markets, with the USD performing solidly, although off its day highs, with the Pound the main winner.
Key Quotes
Initial gains in the USD were pared, after mixed US dataflow provided markets with little direction ahead of the non-farm payrolls release.
However, EUR/USD continued to slide, with ongoing capital outflows likely to placing downward pressure on the single currency.
Modest upward revisions to Q4 UK GDP data elicited little market reaction, although sterling found support late in the session. US Treasuries yields fell marginally at the long end of the curve.
Core and peripheral European bonds yields also declined, with peripheral spreads narrowing to bunds. US equities trimmed gains, following yesterday’s sharp rise, with industrial and health care stocks underperforming. European bourses also traded lower.
Yesterday’s decision by Chinese policymakers to relax mortgage down payment requirements failed to arrest the downward momentum in iron ore prices, which declined a further 2.5% to USD51.4 per tonne. Grain prices fell sharply with much higher than expected stocks for March recorded. Oil and gold prices fell
Key Quotes
Initial gains in the USD were pared, after mixed US dataflow provided markets with little direction ahead of the non-farm payrolls release.
However, EUR/USD continued to slide, with ongoing capital outflows likely to placing downward pressure on the single currency.
Modest upward revisions to Q4 UK GDP data elicited little market reaction, although sterling found support late in the session. US Treasuries yields fell marginally at the long end of the curve.
Core and peripheral European bonds yields also declined, with peripheral spreads narrowing to bunds. US equities trimmed gains, following yesterday’s sharp rise, with industrial and health care stocks underperforming. European bourses also traded lower.
Yesterday’s decision by Chinese policymakers to relax mortgage down payment requirements failed to arrest the downward momentum in iron ore prices, which declined a further 2.5% to USD51.4 per tonne. Grain prices fell sharply with much higher than expected stocks for March recorded. Oil and gold prices fell