HALISTER1: INSIDE G-10: USD Gains; GBP Eyes PM Question Time, BOE’s Carney

INSIDE G-10: USD Gains; GBP Eyes PM Question Time, BOE’s Carney

(Bloomberg) -- USD advances versus most G-10 peers amid subdued volumes following terror attacks yesterday in Brussels.
  • Macro impact tends to be “limited” after global terror, according to former PIMCO chief El-Erian
  • Fed’s Harker sees ‘strong case’ for Fed to raise rates
  • GBP/USD -0.07% to 1.4198 vs 1.4195/1.4227 range
    • Pair sold by European funds, with momentum sell-stops under 1.4170, trader says
    • BOE governor Carney chairs Financial Policy Committee’s first formal meeting of 2016 and the last before Britain’s June 23 referendum
    • Prime Minister’s question time today (8pm HKT) in parliament likely to include debate on costs of Brexit
  • AUD/USD -0.08% to 0.7616 vs 0.7605/0.7649 range
    • Buying by macro funds helped trigger stops through 0.7643, with corporate sell orders seen around 0.7680, trader says
    • Australia’s economy to expand 0.5% in 1Q, according to results of a Bloomberg News survey of 34 economists
  • NZD/USD -0.24% to 0.6737 vs 0.6727/0.6771 range
    • Kiwi sell stops below 0.6720 in focus, says trader
    • Fonterra sees WMP price rising to $2,500 by Christmas
  • USD/JPY +0.03% to 112.40 vs 112.14/112.47 range
    • BOJ will use all 3 easing types to achieve price target, BOJ’s Funo says
  • EUR/USD -0.10% to 1.1206 vs 1.1204/1.1224 range
    • European macro funds seen buying EUR/GBP is it rises above 0.7910, trader says
    • Options expiring today include 1.1200 strikes for EUR1.24b
  • USD/CAD +0.25% to 1.3082 vs 1.3039/1.3088 range
    • Canada forecasts 2016-17 budget deficit of C$29.4b
  • BBDXY rising for fourth day +0.13% to 1,192.79
  • U.S. Treasury 10-year yield steady at 1.944%
  • S&P futures fall 3 points to 2,039.60
  • Brent crude -1.1%, gold -1.1%, copper -0.3%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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