First Republic auction underway, with deal expected by Sunday [Reuters]
Japan Monetary Policy Decision (Friday)
In a closely watched decision, the BOJ on Friday announced it will maintain ultra-low interest rates, as expected, and made no tweaks to its yield curve control by a "unanimous vote".
However, the BOJ said it will remove forward guidance that pledges to keep interest rates at current or lower levels.
While the BOJ still expects CPI inflation to moderate by mid-2023, data released last week showed that nationwide core inflation remained sticky at 3.1%, well above the BOJ’s annual target of 2%.
US GDP & PCE Numbers (Thursday & Friday)
WASHINGTON, April 27 (Reuters) - U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses liquidating inventories in anticipation of weaker demand later this year amid higher borrowing costs. [Reuters] Inventories chopped off 2.26 percentage points from GDP growth.
While the FED's favourite prices-paid indicator stayed stubbornly high. Core PCE Price Index YoY +4.6%
Trimmed Mean CPI (YoY) Q1 at 6.6% slightly lower than expected, and trending lower slowly, is still way too high, and interest rates at 3.6% cash rate way too low.
Following the RBA review there is move by both Labour and The Greens to ensure that Government (theirs of course) always has the final say in interest rate decisions.
Whilst this is still political rhetoric, the backdrop is deteriorating further. With the economy deteriorating fast, and interest rates / inflation settings clearly wrong, the markets will be having a long hard look at Australia and it's investment grade.
Short 0.7000
Short 0.7100
Stop 0.6825
Positive carry
Nearly there. The pivot low at 0.6585 is difficult to close below but we're getting there. With everything else going on, currencies are on the back burner. Except of course BOJ decision Friday.
Nothing more to add.