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May 03, 2024
U.S. April ISM Services - Weakness may be overstated
May 3, 2024 2:24 PM UTC
April’s ISM services index of 49.4 from 51.4 has fallen below neutral for the first time since December 2022. That dip was explained by bad weather. There is no obvious erratic factor here to explain the weakness, but the details suggests that weakness may be overstated.
Russian Economy Expands by 4.2% YoY in March, and 5.4% in Q1
May 3, 2024 2:14 PM UTC
Bottom Line: According to the figures announced by the Russian Ministry of Economic Development, Russia's GDP grew by 4.2% YoY in March owing to strong fiscal stimulus, high military spending, invigorating consumer demand and investments. We now foresee Russian economy will expand by 2.6% in 2024
U.S. April Employment - On the weak side in all key details, following strength in March
May 3, 2024 1:18 PM UTC
April’s non-farm payroll is on the low side of consensus across the board, with a 175k increase (though the 167k private sector rise is only modestly below consensus), with a 0.2% rise in average hourly earnings, a fall in the workweek and a rise in unemployment to 3.9% from 3.8%. The data should
EMFX: Diverging On Domestic Forces Not Less Fed Easing Hopes
May 3, 2024 10:45 AM UTC
While U.S. economic developments, plus Fed policy prospects, will be important in terms of EM currency developments, domestic politics and fundamentals will also be decisive. These can keep the South Africa Rand volatile in the remainder of 2024, given the risk of a coalition government and African
Indonesia CPI Review: Inflation Inches Down but BI on Alert
May 3, 2024 10:33 AM UTC
Indonesia’s consumer price inflation eased marginally to 3% yr/yr in April on the back of declining food prices. Despite the easing, food price remain the key inflationary factor. Additionally, imported inflation as the IDR comes under pressure could keep inflation elevated in the near term. Bank
FX Daily Strategy: N America, May 3rd
May 3, 2024 9:04 AM UTC
USD to get support from US employment report
ISM services should be neutral, but some downside risks
JPY strength to continue long run, but some consolidation may be seen near term
NOK has upside scope despite recent weakness with Norges Bank likely to remain steady
Norges Bank Review: Even More Caution?
May 3, 2024 8:46 AM UTC
Surprising few, the Norges Bank Board left the policy rate at 4.5% for a third successive meeting at its latest Board meeting. It also retained the thinking first aired at the December meeting, namely ‘policy to stay on hold for some time ahead’ rhetoric, this more formally evident in what wer
Turkiye’s Inflation Continues to Jump in April with 69.8%
May 3, 2024 7:40 AM UTC
Bottom Line: Turkish Statistical Institute (TUIK) announced on May 3 that Turkish CPI ticked up 69.8% annually and 3.2% monthly in April due to increases in transportation, restaurant & hotel and education prices, coupled with the lingering impacts of the wage hikes on the services sector. We feel u
FX Daily Strategy: Europe, May 3rd
May 3, 2024 5:57 AM UTC
USD to get support from US employment report
ISM services should be neutral, but some downside risks
JPY strength to continue long run, but some consolidation may be seen near term
NOK has upside scope despite recent weakness with Norges Bank likely to remain steady
Asia Open - Overnight Highlights
May 3, 2024 12:00 AM UTC
EMERGING ASIA
EM currencies perform mostly stronger against the USD as the greenback continue to drift lower after the less hawkish than expected FOMC. IDR saw the largest gains of 0.46%, followed by KRW 0.45%, SGD 0.44%, PHP 0.4%, CNH 0.39%, MYR 0.38%, THB 0.29%, TWD 0.18% and HKD 0.13%.
USD/CNH is t
May 02, 2024
FX Daily Strategy: Asia, May 3rd
May 2, 2024 9:00 PM UTC
USD to get support from US employment report
ISM services should be neutral, but some downside risks
JPY strength to continue long run, but some consolidation may be seen near term
NOK has upside scope despite recent weakness with Norges Bank likely to remain steady
FX Daily Strategy: APAC, May 3rd
May 2, 2024 3:12 PM UTC
USD to get support from US employment report
ISM services should be neutral, but some downside risks
JPY strength to continue long run, but some consolidation may be seen near term
NOK has upside scope despite recent weakness with Norges Bank likely to remain steady
Moody’s Improves Outlook Perspective Due to Higher Growth
May 2, 2024 2:27 PM UTC
Moody’s upgraded Brazil's outlook to positive from stable, maintaining its Ba2 rating, signaling a potential move to Ba1 soon. Strong growth prospects, attributed to institutional reforms, drove this shift. Despite lingering doubts, improved fiscal conditions and anticipated tax reform are bolster
Preview: Due May 3 - U.S. April ISM Services - A correction after two straight slowings
May 2, 2024 2:14 PM UTC
We expect April’s ISM services index to see a modest increase to 52.0 from 51.6, pausing after two straight declines, leaving the index with no clear trend, and continuing to imply modest expansion.
Preview: Due May 3 - U.S. April Employment (Non-Farm Payrolls) - Still strong if a little less so, earnings may be above trend
May 2, 2024 2:03 PM UTC
We expect a 255k increase in April’s non-farm payroll, still strong if the slowest since November, with a 195k increase in the private sector. We expect an unchanged unemployment rate of 3.8% and a slightly above trend 0.4% increase in average hourly earnings, lifted by a minimum wage hike in Cali
U.S. March trade balance little changed, Canada's moves into deficit
May 2, 2024 1:33 PM UTC
March’s US trade deficit of $69.4bn was marginally down from $69.5bn in February as a deterioration on the goods deficit was offset by a correction higher in the services surplus. Canada’s trade data was more surprising, a C$2.23bn deficit, and the largest deficit since June 2023.