Asian shares rose to a fresh high, supported by sound economic fundamentals, while expectations the European Central Bank (ECB) could start to wind down its stimulus boosted the euro and global bond yields. ECB Chief Economist Peter Praet said that robust growth made the central bank increasingly confident that inflation is on its way back to target, raising the chances it may use next week’s meeting next week to reveal more about the end of its bond-buying program. Worries over the effects of reduced ECB bond buying triggered a broad sell-off in German Bunds and other European government debt, which spilled over to Treasuries, analysts said.
In currencies EURUSD held near a two-week at 1.1800 high while Germany’s benchmark 10-year bond hit its own two-week high of 0.486 percent growing conviction the European Central Bank would announce as early as next week its intention to end a drawn-out stimulus program by year-end. USDJPY retraced from yesterday’s highs, losing 0.18% below 110.00 handle. GBPUSD continues the uptrend and currently trading at 1.3435.
In Commodities, Gold prices seem to be stabilizing at 1297 up 0.1 percent on the day, supported by a weaker dollar amid ongoing concerns about a trade war between the United States and its allies. Oil prices rose regaining some of the previous session’s losses, supported by plunging exports from OPEC-member Venezuela. Brent crude futures last traded at $75.70 a barrel and U.S Crude at 65.01, each rising 0.5 percent on the day.
For today important economic releases include the Speech of Gov Poloz (BOC) for the economy of Canada. Moderate to high volatility should be expected today, mainly for the Canadian Dollar.