The Morning Update

As we end the week the USD is trading sideways, equities trade marginally lower, oil is off and treasury yields hedges lower. The USD remains soft as traders await fresh catalysts on when the Fed will begin cutting interest rates. Fed Governor Waller said earlier today that the recent stronger-than-expected inflation data validates Powell's careful risk management approach, in not rushing to reduce interest rates.

Inother news.  The US will impose sanctions on over 500 targets on Friday in action marking the second anniversary of Russia's invasion of Ukraine, US and South Korea fly warplanes in interception drills after North Korea’s missile tests. Mideastcease-fire efforts gain steam as US envoy visits. Mediators report‘encouraging’ signs,

Incurrency news. US representative praised Taiwan’s democracy during their visit. Xi responds by taking a page from Putin playbook as he vows to control Taiwan. China says it aims to 'contain' foreign interference over Taiwan this year. China's yuan eased slightly against the U.S. dollar on Friday as its new home prices fell for the seventh straight month. The MYR fell to a 26-year-low this week. The CNY and JPY are off to end the week 0.05% and 0.12% respectively. The MYR is off 0.04% and TWD is down 0.28%,The AUD and NZD are mixed with the AUD up 0.11% while the NZD is down 0.11%. The trading currencies, MXN and ZAR trade lower 0.07% and 0.70% respectively.

Incommodity markets. Oil set to snap winning streak after Fed says in no rush tocut US rates. Gold set for weekly gain fueled by the weak dollar and the Middle East ongoing crisis. Oil prices starts the last trading day of the week down 1.0% %, Nat Gasis down 3.0%, All metals are hedging higher with Gold up 0.24%, Silver down 0.26% and Copper up 0.20%. Agricultural commodities are pointing higher this morning with Wheat trading 1.0% higher and soybean up 0.10%.

Currentlevel USD Index               103.988            Up 0.03%

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The USD/CAD remains quiet with a bias towards extending its losses for thethird successive session. The pair lost ground as the USD remains subdued amidst speculation of potential interest rate cuts. Additionally, the CAD received some support following the release yesterday’s mixed Retail Sales data.

CurrentlevelUSD/CAD               1.3488             Up0.04%

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TheEUR/CAD remains stable as we end the week trading around the 1.4600 area.

Currentlevel EUR/CAD                1.4600            Flat

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The EUR/USD remains quiet as we end the week. Of note today are comments made by ECB policymaker and Bundesbank chief Nagel, that it’s too early to cut rates even if it looks tempting to some.

CurrentlevelEUR/USD                1.0824            Up 0.06%

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GBP/EUR is moving higher to start the day as the UK economic outlook improves due to anticipated BoE rate cuts.

Currentlevel GBP/EUR     1.1709 (0.8536)        Up 0.15%

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The GBP is trading sideways as investors await fresh guidance on BoE interest rate. While uncertainty over the timing of BoE rate cuts continues to persist, investors hope that the central bank could reduce interest rates in the early part of the second-half of this year.

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CurrentlevelGBP/USD                1.2680             Up0.17%

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