From Marc to Market:
Overview: The dollar fell most of last week but reversed higher before the weekend. It has seen some follow-through gains, albeit limited against most of the G10 currencies today. Despite some seemingly dovish comments by a few Fed officials last week, the Fed funds futures is pricing in the greatest chance for a hike at the early May meeting since the banking stress erupted last month. The greenback is also trading with a firmer bias against most emerging market currencies. The Philippine peso leads the EM complex lower with more than a 1% pullback. The central bank said that is inflation continues to slow (April CPI due May 5) it will pause its tightening (next meeting May 18).
Anticipation of a robust GDP figure tomorrow helped lift Chinese equities by more than 1% today to lead the advance among Asia Pacific equities. The MSCI Asia Pacific Index reacted its best level in two months. Europe's Stoxx 600 is edging higher to extend is winning streak for the sixth consecutive session. US equity futures are narrowly mixed as the earnings season gets under way. Benchmark 10-year yields are mostly 2-3 bp higher in Europe. The 10-year Treasury yield is up a couple of basis points to almost 3.54%, its best level since April 3. Gold peaked last week slightly shy of $2049 and found support ahead of the weekend around $1992.50. No follow-through selling has been seen today and the yellow metal is firm near $2010. June WTI is trading quietly within the pre-weekend range (~$81.65-$83.00). Sentiment is constructive amid concerns over a squeeze of supplies....
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