Good Morning Traders!
It is Thursday 4th of May and May I say, May the force be with you!
Here are some things to look out for.
ECB Interest Rate Prep Article (08:15 AM ET) - READ HERE
Sentiment
This morning, Treasuries fall, led by the short end, while money markets add slightly to Fed tightening bets, as both markets pare Wednesday's post-Fed rate hike moves. The dollar recovers losses, while the Norwegian krone outperforms its G10 peers after the central bank raises interest rates by 25 basis points, as expected. The euro falls against the dollar ahead of the ECB rate decision, with analysts expecting a quarter-point increase in deposit rates to 3.25%.
PacWest Bancorp said core deposits have increased since March and that it is in talks with several potential investors in an effort to calm markets following a 60% stock drop that has made it the new focal point of concern about the health of US regional lenders.
Federal Reserve Chair Jerome Powell hinted that the latest interest-rate hike by the US central bank might be the last, but he stopped short of declaring victory in the fight against rapid price increases.
Within hours of the Fed's latest policy decision, traders and commentators alike began to question Powell's economic assessment.
Docket
8:15 AM ET
ECB Interest Rate - Median Forecast 25 bps Hike to 3.75%
Deposit Rate - Median Forecast 25 bps Hike to 3.25%
ECB Rate Statement
8:30 AM ET
US Initial Jobless Claims - Median Forecast 240K | Prior 230K | Range 256K/222K
US Trade Balance - Median Forecast -63.1 bln | Prior -70.5 bln | Range -61.2 bln/-72 bln
Canadian Trade Balance - Median Forecast 0.2 bn | Prior 0.42 bln | Range 0.6 bln/-0.7 bln
11:30 AM ET
US sells $50 bln of 4-week bills
Speakers
8:45 AM ET
ECB Press Conference w/ Pres. Lagarde
8:50 AM ET
German Economy Min. Habeck Speaks - Speaking in a forum on overcoming high inflation.
1:05 PM ET
BoC's Gov. Macklem Speaks
Earnings
4:30 PM ET
Apple Q2 2023 Earnings
Est EPS $1.43
Est Revenue $92.6 bln
Good luck!
