FOREX
The euro traded at $1.1309, hovering near a two-week low on expectations that the ECB could suggest offering cheap long-term loans for banks. The loans, known more formally as Targeted Long-Term Refinancing Operations, are expected to boost troubled euro zone lenders.
USDJPY eased 0.1% to 111.67 , moving further away from Tuesday’s 2-1/2-month peak of 112.135, while the dollar index, which measures the greenback against a basket of six of its peers, barely moved.
Aussie’s woes on Thursday was data showing local retailers suffered another bleak month in January, in a sign overall economic momentum was slowing. The CAD & AUD sank near two-month lows as traders scaled back holdings on expectations policy-makers would leave interest rates alone in the foreseeable future or even lower them to counter their softening economies.
GBP/AUD is trading near 1.8740 after AU retail sales missed forecast on early Thursday. The pair rose to the 33-month high.
ECONOMY
On Thursday, In early trade Asian Indices marginally up, with caution prevailing as investors awaited some kind of resolution to China-U.S. trade negotiations, while the euro remained under pressure ahead of the European Central Bank meeting.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1% in early trade. It was not far from its five-month high marked last week and was up 10.4% year-to-date.
Overnight, Wall Street’s main indexes fell for a third session, with the S&P 500 posting its biggest one-day decline in a month, as investors sought reasons to buy after the market’s strong rally to start the year.
Adding to concerns about the talks was data that showed the U.S. goods trade deficit surged to a record high in 2018 as strong domestic demand fueled pulled in imports, despite the Trump administration’s “America First” policies aimed at shrinking the gap.
Chinese macroeconomic data remains weak at the moment but we expect them to improve by the middle of the year.
Investors are now look ahead to the ECB’s board meeting later on Thursday. The central bank is expected to slash growth forecasts and give its strongest signal yet that fresh stimulus is coming in the form of more cheap loans.
COMMODITY
U.S. oil prices were lower and Brent prices edged up after data from the Energy Information Administration showed an unexpectedly sharp build in U.S. crude inventories, but a third weekly draw down in gasoline stocks kept losses at bay.
U.S. crude futures stood at $56.11 per barrel, down 0.2%, in early Asian trade. They hit a 3-1/2-month high of $57.88 on Friday.
Britain plans to generate a third of its electricity from offshore wind farms by 2030 and boost the value of exports of offshore wind services and equipment to 2.6 billion pounds ($3.4 billion) a year, the government said on Thursday.
Plans by the German operator of a portion of the Venezuelan state oil company's tanker fleet to return 10 vessels because of unpaid fees prompted a unit of state-run PDVSA on Tuesday to declare a maritime emergency.
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