ASIA-PACIFIC

Equities in the region traded mixed with sentiment largely driven by oil prices. The Nikkei225 closed at +0.6% as BoJ`s Kuroda said that the bank still has scope to purchase Japanese bonds and will not reach any limits for years to come. The ASX 200 gained 0.4% as it found support from gains in the mining sector after firmer metal prices. The Shanghai comp on the other hand lost 2.5% as China appears to be tapering its liquidity injections.

Commodity linked currencies experience mild profit taking despite a subdued USD as crude slid overnight. The AUDUSD is trading below 0.7800 and the safe haven JPY strengthening slightly to trade below 109.00.

USA

Equities in the region where mixed after a mixed bag of earnings data which saw the NASDAQ lose 0.62% after disappointing earnings results from Netflix. The S&P500 and the DJIA managed to post gains for the sessions, 0.31% and 0.27 % respectively after positive earning data from Jonson and Johnson and Goldman Sachs lifted the indexes.

The USD lost ground across the board yesterday as poor data continues to be released by the US; yesterday Housing starts and Building permits disappointed markets with -8.8% vs -1.1% and -7.7% vs 2% respectively. The USD index has since moved higher after lower oil prices but not enough to convince markets of a USD comeback.

Expected data out of the US today, is in the form of Existing Homes sales, expected at 5.29M, higher than last month’s 5.08M.

EUROPE

ECB President Mario Draghi is due to speak today and markets will evaluate his speech for clues to the future of monetary policy in the EU, buying the EUR if a more hawkish tone is noted or selling the EUR if a more dovish tone is noted.

UK

The GBP stayed remarkably bid after BOE`s Carney was extremely dovish, stating that bank rates can be moved closer to 0% if required and that core UK inflation pressure is subdued.

Data out of the UK today comes in the form of the Average Earnings Index, Claimant Count Chage and the Unemployment Rate, expected at 2.1%, -11.9K and 5.1% respectively. Worse than expected data will see markets finally digest Carneys dovish words and a selloff in the GBP is to be expected.

CANADA

The Cad has been remarkably strong in recent trade thanks to positive data and sentiment out of Canada and of course an ever strengthening energy sector. Today sees Whole Sales m/m being released (expected at -0.4%) and BOC`s Poloz due to speak. Bette than expected data or a bullish Poloz will see the CAD continue to strengthen as it re-establishes its grip in the current climate.

CRUDE OIL

Oil prices were pressured overnight as a larger than expected increase in API stockpiles coupled with reports that Kuwaiti oil workers ended a 3-day strike led to oversupply concerns resurfacing. As it stands Crude will continue to be sensitive to headlines and any comments regarding supply will see the price react accordingly. Furthermore, we expect more volatility in crude as we have the US Crude oil Inventories due today (expected at 2.2M, lower than last week’s 6.6M).